EUROPEAN UNION (EU]

A  European Economic Community (EEC)

A  European Common Market (ECM)

A  European Union (EU)

A  European Community (EC)

A  Europe 1992/EC 1992

A  European Fortress

A  Fortress 92.

            The European union in one of the best examples for economic – integration schemes.  The EEC originally comprises of six nations namely Belgium, France, Federal Republic of Germany, Italy, Luxembourg and the Netherlands.  These countries come together on a common platform and are bound together by treaty of Rome in 1957 the European union came into being from January 1, 1958 onwards.

The following are the important points laid under Treaty of Rome 1958.

Treaty of Rome salient features

1. Eliminates tariffs, quotas and other barriers of trade.
2. Devise a common internal tariff on the imports from the rest of the world.
3. Allow free movement of factors of production within the community.
4. Adopt a common policy on agriculture transport and competition in industry.

            By January 1 1986 the strength of European Union increased by 15.  The new countries which joined hands with original sex countries were UK, Denmark, Ireland, Greece, Spain, Portugal, Austria, Finland and Sweden by 2004, the strength of EU has gone up to 25.

            The European union consists of a EC commission which forms the chief executive body of European union.  The supreme decision making body of European Union is called as EC council.

            The EC council formed the white paper programme titled ‘completing the internal market’ by 1992.  This white paper programme unified the economics of all member nations into a single market by removing all border barriers to trade.  They also formed and adopted European Monetary System in 1979.

           

The barriers targeted for removal is as follows.

1.              Border control

2.    Limitations on the movement of people and their right for establishment.

3.    Difference in taxation between countries in EU.

4.    Lack of common legal framework for business.

5.              Controls on movement of capital.

6.    Product regulations and standards.

            The EC is the largest market in the world.  Some observers regarded the EC 1992 as European Fortress/ Fortress 92 implying that exports from non-member countries to the EC would have to encounter a mounting barrier.

            It is however true that the real purpose of the single market is to boost the competitiveness of European industry against its rivals particularly the USA, Japan and South East Asian nations.