European Common Market

Definition

The European Common Market, established in 1957 through the Treaty of Rome, aimed to create a unified economic space among its member states by facilitating free trade and promoting economic cooperation. It was designed to eliminate tariffs and trade barriers, allowing for the free movement of goods, services, capital, and labor among the countries involved. This integration was crucial in shaping postwar Europe, as it aimed to foster economic recovery and growth following the devastation of World War II.

5 Must Know Facts For Your Next Test

1. The European Common Market was a key part of post-World War II efforts to rebuild Europe and prevent future conflicts through economic cooperation.
2. By eliminating tariffs and trade barriers among member countries, the Common Market helped stimulate economic growth and integration in Western Europe.
3. The initial members of the European Common Market included Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany.
4. The success of the Common Market laid the groundwork for the eventual establishment of the European Union in 1993.
5. The European Common Market played a significant role in increasing competition among member states, leading to greater efficiency and innovation in various industries.

Review Questions

• How did the European Common Market contribute to economic recovery in post-World War II Europe?
  • The European Common Market contributed to economic recovery by creating a unified economic space that allowed for free trade among its member states. By eliminating tariffs and trade barriers, it stimulated trade and investment, which helped rebuild economies ravaged by the war. This cooperation not only promoted economic growth but also fostered political stability by encouraging collaboration among European nations.
• Discuss the implications of the European Common Market on international trade relationships during its early years.
  • The establishment of the European Common Market had significant implications for international trade relationships, as it set a precedent for regional economic integration. By creating a customs union with common external tariffs, it influenced non-member countries to reevaluate their trade policies and seek closer ties with EEC member states. This shift led to an increase in global trade dynamics as other regions observed and potentially pursued similar integration models.
• Evaluate the long-term impacts of the European Common Market on economic integration in Europe, particularly regarding its evolution into the European Union.
  • The long-term impacts of the European Common Market on economic integration in Europe are profound, as it served as a foundational step toward the establishment of the European Union. The principles of free movement of goods, services, labor, and capital laid down by the Common Market were expanded upon in subsequent treaties, leading to a more integrated Single Market. This evolution has facilitated deeper economic ties among member states, fostered collaboration in various sectors, and significantly influenced policies related to trade, labor rights, and environmental standards across Europe.

Related terms

European Economic Community (EEC):

An organization established by the Treaty of Rome that aimed to integrate the economies of its member states, forming the basis for future European Union policies.

Customs Union: A trade agreement between countries that allows for free trade among them while imposing a common external tariff on imports from non-member countries.

Single Market: An integrated market within the European Union that allows for the free movement of goods, services, capital, and people among member states.