Background
The European Community (EC) represented the main institution of burgeoning European unity, originating in 1967. It emerged from the combination of three prior entities focused on different aspects of economic integration: the European Atomic Energy Community, the European Coal and Steel Community, and the European Economic Community.
Historical Context
The formation of the European Community marked a significant shift towards an integrated Europe in response to the devastation of World War II. Its creation reflected aspirations for economic cooperation as a means to ensure lasting peace and economic stability. Over time, this supranational body evolved, eventually becoming the European Union (EU) in 1993.
Definitions and Concepts
The European Community was an assemblage of European nations committed to economic integration and political cooperation. It aimed to harmonize economic policies, foster economic growth, and cement political alliances.
Major Analytical Frameworks
Classical Economics
Classical economists primarily focus on the capitalistic market system’s efficiencies and would underscore the EC’s market liberalizations and deregulatory efforts.
Neoclassical Economics
Neoclassical economics, which emphasizes market efficiency, would appreciate the reduction of trade barriers and market integration initiatives achieved by the EC, promoting higher competitiveness and market dynamics.
Keynesian Economics
From a Keynesian perspective, the EC’s efforts to stabilize economies through regional cooperation would be endorsed. The policy harmonizations and combined stimulus measures are aligned with Keynesian thought.
Marxian Economics
Marxian economists might critique the EC for serving capitalist interests by increasing market power and control of European big businesses, often at the expense of labor interests.
Institutional Economics
Institutionalist frameworks would examine the institutional structures and rules established by the EC that govern member states’ economic and social interactions.
Behavioral Economics
Behavioral economists would be interested in how the EC influenced decision-making, norms, and cultural integration among member countries through cooperative associations.
Post-Keynesian Economics
Post-Keynesian economists would focus on the EC’s role in addressing inherent economic disparities and market imperfections within Europe.
Austrian Economics
Austrian school thinkers would carefully analyze the extent to which the EC promoted or restricted individual national sovereignty and free-market efficiency.
Development Economics
Development economists would view the EC as instrumental in uplifting less developed member states, such as Greece, Spain, and Portugal, enhancing region-wide socio-economic development.
Monetarism
Monetarists would study the impact of the EC’s economic policies, especially those related to monetary unions and controlling inflation across the member countries.
Comparative Analysis
A juxtaposition of the different economic paradigms reveals varying perspectives on the EC’s benefits and drawbacks, exploring economic growth facilitation, regulatory harmonization, and the balance of sovereignty.
Case Studies
Denmark, Ireland, and the UK Joining in 1973
Examines the enlargement impact on these economies and the consideration for exiting (Brexit for the UK).
Greece Joining in 1979
Analyzes the contributions and economic progression upon integration into the EC.
Portugal and Spain in 1986
Considers the democratization and economic reforms prompted by EC membership.
Suggested Books for Further Studies
- “The European Union: Economics and Policies” by John McCormick.
- “The History of the European Union: Origins and Key Milestones” by Steven P. Carney.
- “The European Community: To Maastricht and Beyond” by Robert O. Keohane.
Related Terms with Definitions
- European Union: A political and economic union formally established by the Maastricht Treaty in 1993, succeeding the European Community.
- European Economic Community (EEC): An organization aimed at integrating the economies of six European nations, a precursor to the European Community.
- Single Market: A type of trade bloc allowing the unrestricted movement of goods, services, people, and capital.
- Treaty of Rome: The 1957 treaty establishing the European Economic Community.
- Schengen Area: Zone where 26 European countries abolished their internal borders to allow for unrestricted movement of people.
