In the wake of two devastating world wars, European nations sought to replace centuries of nationalist rivalry with economic cooperation and political integration. The belief was that interdependence would make future wars not only undesirable but economically disastrous for all involved. This vision gave birth to what is now known as the European Union (EU)—a transnational alliance aiming to foster unity, prosperity, and peace on the continent.
From Coal and Steel to Continental Unity

Early Integration Efforts
The origins of the European Union lie in the European Coal and Steel Community (ECSC), established in 1952. This early agreement between six countries (France, West Germany, Italy, Belgium, the Netherlands, and Luxembourg) regulated industrial output—especially materials used in war—to ensure mutual economic growth and avoid future conflict.
In 1957, the Treaty of Rome created the European Economic Community (EEC), also called the Common Market, which aimed to reduce trade barriers and coordinate economic policy.
Eventually, in 1993, the Maastricht Treaty officially formed the European Union, expanding cooperation into areas such as foreign policy, security, and justice.
⭐ Key Idea: The EU evolved from a trade alliance into a powerful political and economic union promoting European identity and cooperation.
Benefits of Integration
EU member states agree to a set of shared principles and enjoy a wide range of benefits:
- Free movement of people, goods, services, and capital across borders
- Common tariffs for trade with non-EU countries
- EU citizenship, which allows residents to live and work in any member nation
- Access to development funds for economically weaker regions
- Single currency (the euro) for many, though not all, member states
| Feature | Description |
|---|---|
| Free Movement | Citizens can live, work, and study in any EU country |
| Common Market | No tariffs or barriers between EU members |
| Eurozone | 19 of 27 EU members use the euro as their currency |
| EU Citizenship | Rights to reside, vote in EU elections, and access services in any member state |
| Regional Development Funds | Economic support for poorer areas of the EU |
Major Institutions of the European Union
The EU’s political structure is complex, balancing shared authority with national sovereignty. While some policies are set at the EU level, others remain under the control of member states.
| Institution | Role |
|---|---|
| European Commission | Proposes and enforces EU laws; 1 commissioner per member state |
| European Parliament | Directly elected by EU citizens; debates and approves legislation |
| Council of the European Union | Represents national governments; adopts laws with Parliament |
| European Council | Heads of state/government set EU priorities, but do not pass laws |
| European Central Bank | Manages the euro and monetary policy for eurozone nations |
| Court of Justice of the EU | Ensures uniform interpretation of EU law across member states |
| European Court of Auditors | Monitors EU spending and promotes financial accountability |
Challenges to European Unity
The Euro Crisis (2009–2015)
The global financial crisis exposed flaws in the eurozone. Countries like Greece, Portugal, and Spain faced soaring debt and unemployment, but lacked tools like independent currency devaluation to stabilize their economies.
- The European Central Bank (ECB) and International Monetary Fund (IMF) provided bailouts.
- Austerity policies sparked protests and political backlash.
- The crisis fueled skepticism about the feasibility of a unified currency.
⭐ Eurozone: A monetary union of 19 EU countries using the euro. Shared currency limits individual control over fiscal policy.
Refugee Crisis (2015–Present)
Conflicts in Syria, Afghanistan, and North Africa sparked a refugee crisis. The EU struggled to respond collectively:
- Greece and Italy, entry points to the EU, were overwhelmed.
- Some nations (like Germany) accepted many refugees; others (Hungary, Poland) closed borders.
- The crisis exposed divisions in migration policy and cultural identity.
Democratic Backsliding
Concerns emerged about democratic values in Hungary and Poland:
- Undermining of judicial independence and media freedom
- Rise of authoritarian populism
- EU invoked Article 7 procedures to address violations of democratic principles
Euroskepticism and Brexit
A growing number of citizens and politicians began questioning the EU’s influence:
- Euroskeptic Parties (Like Reform UK) gained traction across Europe
- Criticism focused on:
- Loss of national sovereignty
- Overregulation
- Cultural homogenization
In 2016, the United Kingdom voted to leave the EU, a process known as Brexit, finalized in 2020.
⭐ Euroskepticism: The belief that European integration undermines national sovereignty or democratic accountability.
Balancing Sovereignty and Integration
Even as the EU expanded its authority in economic and political affairs, member states continued to balance national interests with EU obligations.
- Countries cede control over trade and monetary policy
- Disputes arise over immigration, environmental regulations, and judicial independence
- Despite tensions, most European nations see continued cooperation as essential for peace, stability, and prosperity
Conclusion: The EU as a New European Identity
The European Union transformed Europe from a continent of warring states into a global economic power pursuing shared identity and integration* Though it faces challenges—from economic crises to nationalist pushback—the EU remains a vital force in shaping the future of Europe.
Vocabulary
The following words are mentioned explicitly in the College Board Course and Exam Description for this topic.
| Term | Definition |
|---|---|
| Brexit | Britain's withdrawal from the European Union, representing a member state's decision to leave the union and reassert national sovereignty. |
| Common Market | An economic union characterized by the elimination of trade barriers and the free movement of goods and services among member states. |
| economic integration | The process of combining national economies through trade agreements, shared markets, and coordinated economic policies. |
| euro | The common currency adopted by many EU member states, representing economic integration and a challenge to national monetary sovereignty. |
| European Coal and Steel Community | An economic alliance formed after World War II to coordinate coal and steel production among European nations as a means to promote economic recovery and prevent future conflict. |
| European Economic Community | An economic union established to create a common market among member states, allowing free movement of goods, services, capital, and labor. |
| European identity | A collective sense of belonging and shared values among European peoples, potentially fostered through EU membership and integration. |
| European Parliament | The directly elected legislative body of the European Union that represents EU citizens and creates EU law, representing a supranational authority that affects national governance. |
| European Union | A political and economic union of European countries that expanded to include former Eastern bloc nations after the Cold War. |
| free movement across borders | The EU policy allowing citizens to move, live, and work freely among member states without internal border controls, affecting national immigration and labor policies. |
| national identities | The sense of belonging to a nation, shaped by shared history, language, culture, and political institutions. |
| national sovereignty | The authority and independence of a nation-state to govern itself and make decisions without external interference, which EU member states must balance with union responsibilities. |
| nationalist rivalries | Competitive tensions and conflicts between nations driven by national interests and sovereignty concerns. |
| political integration | The process of unifying political institutions and decision-making structures across multiple states. |
| shared European identity | A collective sense of belonging and common cultural, political, and economic values among European peoples and nations. |
| Transnational union | Political and economic organizations that unite multiple nations across borders, such as the European Union. |
Frequently Asked Questions
What is the European Union and how did it start?
The European Union (EU) is a political and economic union of European states that promotes integration—free trade, free movement, common rules, and some shared institutions (European Parliament, Commission, Council, Court of Justice). It began after WWII to prevent nationalist conflict and rebuild economies: the European Coal and Steel Community (ECSC) in 1951 pooled heavy industries, then the 1957 Treaty of Rome created the European Economic Community (EEC or Common Market). Over decades that grew into the EU with the Maastricht Treaty (1992) creating the EU framework, the single market (four freedoms), the euro for the Eurozone, and Schengen open borders. That integration boosted trade and political cooperation but raised sovereignty questions (e.g., euro, Parliament authority, Brexit). For AP exam prep, connect causation and continuity/change: link ECSC → EEC → EU and explain effects on economic development and national identity (Unit 9.10). Review the topic study guide (https://library.fiveable.me/ap-european-history/unit-9/european-union/study-guide/sow0bZc5ydppEwtZ3zFK), the unit overview (https://library.fiveable.me/ap-european-history/unit-9), and practice questions (https://library.fiveable.me/practice/ap-european-history).
Why did European countries decide to work together after World War II instead of staying separate?
After WWII European countries chose cooperation because it reduced the chance of renewed conflict and sped economic recovery. Leaders used economic integration—starting with the European Coal and Steel Community—to bind key industries so rivalry would be costly and unlikely. That move grew into the EEC/Common Market and later the EU (Maastricht Treaty, single market, four freedoms), which boosted trade, reconstruction, and growth while encouraging a shared European identity (KC-4.4.IV; LO J). Politically, pooling sovereignty through institutions (European Parliament, Commission, Court of Justice) made collective problem-solving easier but created tensions over national control (LO K—think euro, Schengen, Brexit). For AP prep, you should link these developments to how the EU affected postwar economic growth and identity; the Topic 9.10 study guide on Fiveable covers this (https://library.fiveable.me/ap-european-history/unit-9/european-union/study-guide/sow0bZc5ydppEwtZ3zFK). For more practice, try Fiveable’s AP Euro question bank (https://library.fiveable.me/practice/ap-european-history).
What's the difference between the European Coal and Steel Community, EEC, and EU?
Short version: they’re stages of the same integration project that got bigger over time. - European Coal and Steel Community (ECSC, 1951): first postwar step. It pooled coal and steel production among six countries to prevent economic rivalry and help recovery. It’s primarily an economic, sector-specific alliance. - European Economic Community (EEC, 1957/Treaty of Rome): expanded integration into a broader Common Market—lowered tariffs, promoted the Single Market and the “four freedoms” (goods, services, people, capital). It’s more economic and institutional than the ECSC. - European Union (EU, Maastricht Treaty 1992): turned the EEC into a political and economic union. Added common foreign policy elements, created EU institutions (European Parliament, Commission, Court of Justice), and led to the Euro/Eurozone and Schengen. Membership, sovereignty questions, and identity issues (e.g., Brexit) are EU-level debates. For AP Euro, tie these to KC-4.4.IV and Learning Objectives J/K. See the Topic 9.10 study guide on Fiveable (https://library.fiveable.me/ap-european-history/unit-9/european-union/study-guide/sow0bZc5ydppEwtZ3zFK), the Unit 9 overview (https://library.fiveable.me/ap-european-history/unit-9), and practice questions (https://library.fiveable.me/practice/ap-european-history) to prep for exam examples about economic integration, institutions, and sovereignty.
How did the European Union change from just being about coal and steel to what it is today?
It started as the European Coal and Steel Community (ECSC) in 1951 to pool coal/steel and prevent rivalry. That narrow economic link grew: the 1957 Treaty of Rome created the European Economic Community (EEC)—the “Common Market”—lowering trade barriers and building the Single Market (four freedoms). Later treaties (notably Maastricht, 1992) turned the EEC into the European Union with political institutions (European Parliament, European Commission, Council, European Court of Justice), the euro for many members, and Schengen free-movement rules. Enlargement to Eastern Europe and deeper policy coordination expanded scope, while issues of national sovereignty (the euro, Parliament powers, and Brexit) show continuing tensions between national identity and integration. This trajectory matches AP CED goals (Topic 9.10) about economic integration and identity. For the Fiveable Topic study guide see (https://library.fiveable.me/ap-european-history/unit-9/european-union/study-guide/sow0bZc5ydppEwtZ3zFK) and practice problems at (https://library.fiveable.me/practice/ap-european-history).
I'm confused about how the EU actually affects individual countries - can someone explain this simply?
Think of the EU like a club of countries that agree to share rules and tools so goods, people, money, and services move more easily—this changes how individual countries run their economies and even how people see their identity. Key ways it affects countries: - Single Market (four freedoms): removes barriers for trade and labor, boosting growth but increasing competition for local firms. - Euro/Eurozone: a common currency lowers transaction costs for members but means countries give up independent monetary policy. - Schengen: free movement makes travel and work easier, but raises debates over border control and national security. - Policies & institutions (Common Agricultural Policy, European Commission, European Parliament, European Court of Justice): set rules, distribute funds, and resolve disputes—sometimes limiting national sovereignty. - Enlargement and Brexit show how joining or leaving reshapes economics and national identity. For AP: emphasize how integration influenced postwar economic development (LO J) and the tension between sovereignty and shared identity (LO K). Review this Topic 9.10 study guide for examples and exam tips (https://library.fiveable.me/ap-european-history/unit-9/european-union/study-guide/sow0bZc5ydppEwtZ3zFK). For more practice, use Fiveable’s unit overview (https://library.fiveable.me/ap-european-history/unit-9) and 1000+ practice questions (https://library.fiveable.me/practice/ap-european-history).
What is the euro and why don't all EU countries use it?
The euro is the EU’s single currency used by the Eurozone—currently 20 of the 27 EU member states—to deepen economic integration, simplify trade, and stabilize prices. It’s a key example of EU-level authority that affects national sovereignty (CED keywords: euro, Eurozone, Maastricht Treaty). Not all EU countries use it because: 1) some negotiated opt-outs (e.g., Denmark) or delayed adoption (the UK had one before Brexit); 2) new members must meet the Maastricht convergence criteria (inflation, debt/GDP, deficit, interest rates, exchange-rate stability) before joining; and 3) some governments prefer to keep monetary control for national economic policy. On the AP exam, the euro is an illustrative example of KC-4.4.IV and Topic 9.10’s tension between integration and sovereignty. For a focused review, check the Topic 9.10 study guide (https://library.fiveable.me/ap-european-history/unit-9/european-union/study-guide/sow0bZc5ydppEwtZ3zFK) and practice questions (https://library.fiveable.me/practice/ap-european-history).
How does the European Parliament work and what power does it actually have?
The European Parliament (EP) is the EU’s directly elected legislature—MEPs (Members of the European Parliament) are elected every five years and sit by political group, not nationality. Most EU laws are made under the ordinary legislative procedure: the European Commission proposes legislation, and the Parliament and the Council of the European Union must both agree. That gives the EP real powers: co-legislation (amend/approve laws), budgetary authority (share control of the EU budget), and democratic oversight (it approves the Commission and can pass a motion of censure to force its resignation). Limits: it can’t originate most bills (that’s the Commission) and has less formal power over foreign policy or taxation, so member states and the Council still protect national sovereignty. For AP Euro, link this to KC-4.4.IV and the “Challenges to national sovereignty” examples (European Parliament, euro, free movement). Review the Topic 9.10 study guide (https://library.fiveable.me/ap-european-history/unit-9/european-union/study-guide/sow0bZc5ydppEwtZ3zFK) and practice questions (https://library.fiveable.me/practice/ap-european-history) to prep.
What's the deal with Brexit and why did Britain want to leave the EU?
Brexit = Britain leaving the EU after a 2016 referendum (Leave ~52% vs Remain ~48%). It mattered because it’s a prime example of balancing national sovereignty vs. economic/political integration (CED Learning Objectives J & K). Why Britain voted Leave: - Sovereignty: many voters wanted UK laws, courts, and borders controlled in Westminster rather than EU institutions (European Parliament, European Court of Justice). - Immigration/free movement: concerns about EU free movement and public services after EU enlargement. - Economic grievances: complaints about EU regulations, the euro (UK kept the pound), and the UK’s net budget contribution. - Identity and politics: growing nationalism, distrust of elites, and populist appeals. Aftermath: UK formally left in 2020, with a trade deal but ongoing issues (trade frictions, the Northern Ireland Protocol) that show tradeoffs between sovereignty and economic integration—a good exam example for LEQ/DBQ about national identity and EU effects. For a focused review, check the Topic 9.10 study guide (https://library.fiveable.me/ap-european-history/unit-9/european-union/study-guide/sow0bZc5ydppEwtZ3zFK) and practice questions (https://library.fiveable.me/practice/ap-european-history).
Why can people just move freely between EU countries without passports?
Because most EU countries are part of the Schengen Area, people can cross internal borders without routine passport checks. Schengen is a separate agreement (built on the EU’s push for economic integration and the Single Market’s “four freedoms”) that removed fixed border controls to allow free movement of people, goods, services, and capital. That doesn’t mean no ID: travelers usually must carry national ID cards or passports and countries can temporarily reinstate border checks for security or public-health reasons. Free movement is a key example of how EU integration reduced barriers and challenged national sovereignty (see Maastricht Treaty, Single Market, Schengen Area in the CED). For AP review, link this to KC-4.4.IV and the “free movement across borders” illustrative example. For a quick recap, check the Topic 9.10 study guide (https://library.fiveable.me/ap-european-history/unit-9/european-union/study-guide/sow0bZc5ydppEwtZ3zFK) and practice questions (https://library.fiveable.me/practice/ap-european-history).
How do I write an essay about the economic impact of European integration after WWII?
Start with a clear thesis that answers “how” European integration affected economies (cause → effect). Briefly contextualize post-1945 recovery and the ECSC → EEC → EU path (CED keywords). Organize body paragraphs by economic theme: 1) trade and growth—Single Market (four freedoms) boosted intra-EU trade, specialization, and GDP growth; 2) monetary integration—Maastricht Treaty and the euro encouraged price stability and easier cross-border investment for Eurozone members but also created asymmetric shocks and required fiscal coordination; 3) policy tools—Common Agricultural Policy and structural funds redistributed resources, aiding recovery and convergence but leaving regional disparities; 4) enlargement and globalization—Eastern enlargement expanded markets and labor mobility (Schengen), altering labor markets and supply chains; 5) limits—sovereignty tensions (e.g., Brexit) affected economic policy. For AP LEQ: include contextualization, 2+ specific pieces of evidence (ECSC, Maastricht, euro, CAP, enlargement, Brexit), and use causation and continuity/change. Use the Topic 9.10 study guide for facts and examples (https://library.fiveable.me/ap-european-history/unit-9/european-union/study-guide/sow0bZc5ydppEwtZ3zFK). For practice, try problems at (https://library.fiveable.me/practice/ap-european-history).
What are the main challenges EU countries face between keeping their national identity and being part of the union?
EU countries face several tensions when balancing national identity with EU membership. Politically, member states cede parts of sovereignty to EU institutions (European Parliament, Commission, Court of Justice), which can clash with national laws or popular preferences—think disputes over courts or migration rules. Economically, adopting the euro (for Eurozone members) means losing independent monetary policy, which can fuel resentment during recessions. Socially and culturally, free movement and enlargement (Eastern enlargement) challenge ideas of national identity and strain public services, prompting anti-EU or nationalist backlashes (Brexit is a clear example). Policymakers try to balance these by negotiating opt-outs, protecting key domestic policies (e.g., Common Agricultural Policy support), and emphasizing a shared European identity while respecting national traditions. For AP prep, link this to CED Learning Objective K (national sovereignty vs. union responsibilities) and use Topic 9.10 study guide (https://library.fiveable.me/ap-european-history/unit-9/european-union/study-guide/sow0bZc5ydppEwtZ3zFK) and unit overview (https://library.fiveable.me/ap-european-history/unit-9). Practice more with Fiveable’s practice questions (https://library.fiveable.me/practice/ap-european-history).
Did the European Union actually help Europe's economy recover after World War II?
Short answer: Yes—but not alone. After WWII European states used economic integration (starting with the European Coal and Steel Community in 1951 and the Treaty of Rome creating the EEC in 1957) to stabilize and revive growth by removing trade barriers, coordinating key industries, and attracting investment. The Single Market’s “four freedoms,” the Common Agricultural Policy, and later the euro and Schengen rules deepened trade, labor mobility, and price stability so economies could grow faster and recover more sustainably. That said, the Marshall Plan, national reconstruction, and Cold War aid were also vital—the EU institutions complemented those efforts rather than replacing them. For AP essays, emphasize causation and use specific developments (ECSC → EEC → EU, Maastricht Treaty 1992, Single Market, euro) as evidence (see the Topic 9.10 study guide on Fiveable) (https://library.fiveable.me/ap-european-history/unit-9/european-union/study-guide/sow0bZc5ydppEwtZ3zFK). For practice, try problems at Fiveable (https://library.fiveable.me/practice/ap-european-history).
How has EU membership affected national sovereignty in member countries?
EU membership reduced some national sovereignty by shifting decision-making from purely national governments to shared EU institutions and rules. Examples: joining the Eurozone means giving up independent monetary policy; the Single Market and Schengen limit border and trade controls; the European Parliament, Commission, Council, and European Court of Justice can override or shape national laws (CED keywords). At the same time states keep core powers—taxation, fiscal choices (outside euro rules), and foreign policy—so sovereignty is pooled, not erased. Tensions show up in enlargement and Brexit: members weigh economic/political benefits against loss of unilateral control (CED illustrative examples). For AP essays/SAQs, use these institutions and cases (Euro, ECJ rulings, Schengen, Brexit) as specific evidence and link them to KC-4.4.IV about integration (see the Topic 9.10 study guide for examples) (https://library.fiveable.me/ap-european-history/unit-9/european-union/study-guide/sow0bZc5ydppEwtZ3zFK). For broader review and practice, check Unit 9 (https://library.fiveable.me/ap-european-history/unit-9) and practice questions (https://library.fiveable.me/practice/ap-european-history).
What caused European countries to give up some of their independence to join the EU?
After WWII many European states chose to give up parts of their sovereignty to join the European Union mainly to prevent future wars and speed economic recovery. Starting with the European Coal and Steel Community, leaders tied key industries together so no single country could unilaterally rearm—this lowered nationalist rivalries (CED KC-4.4.IV). Economic goals—reconstruction, a single market (four freedoms), and later the euro/Eurozone—encouraged pooling monetary and trade policy to boost growth and stability. Cold War politics and the desire for cooperation (Marshall Plan-era integration, plus later Maastricht Treaty) also pushed states to accept supranational institutions (European Parliament, Commission, Court of Justice) even though that meant ceding some decision-making. Member states trade off sovereignty for benefits like free movement (Schengen), common policies (CAP), access to a bigger market, and political influence. For AP study, this ties to Learning Objectives J and K—know how integration affected economies and national identity. See the Topic 9.10 study guide (https://library.fiveable.me/ap-european-history/unit-9/european-union/study-guide/sow0bZc5ydppEwtZ3zFK) and the Unit 9 overview (https://library.fiveable.me/ap-european-history/unit-9). For extra practice, check Fiveable’s practice questions (https://library.fiveable.me/practice/ap-european-history).
I missed class - can someone explain how the EU influenced European identity and nationalism?
After WWII the EU (starting as the ECSC → EEC → EU) pushed states to set aside rivalries for economic and political integration, which encouraged a pan-European identity through the Single Market (four freedoms), shared policies (Common Agricultural Policy), common institutions (European Parliament, Commission, Court of Justice), symbols (EU flag, euro), and enlargement to include Eastern Europe. That built habits of cooperation and gave people practical reasons to think “European” (study/work across borders, travel in Schengen). But integration also provoked nationalist pushback: worries about loss of sovereignty (euro, EU laws, Parliament), migration and cultural concerns, and major outcomes like Brexit show enduring national attachments. For the AP exam, use these points for Unit 9 prompts on identity or sovereignty (Learning Objective K), and cite examples (eurozone, Schengen, enlargement, Brexit). Review Topic 9.10 on Fiveable (study guide: https://library.fiveable.me/ap-european-history/unit-9/european-union/study-guide/sow0bZc5ydppEwtZ3zFK) and practice questions (https://library.fiveable.me/practice/ap-european-history).