EUROPEAN ECONOMIC COMMUNITY

Originally the European Coal & Steel Community (ECSC) was formed with the then West Germany, France, Italy, Belgium, Netherlands & Luxembourg in 1952. the aim of the ECSC was to eliminate airport duties & quotas on coal, iron ore & steel scrap regarding the international trade among the member countries. The successful functioning of ECSC stimulated the member countries to extend this facility to all commodities by the Treaty of Rome in 1957. this treaty gave birth to European Economy Community. The European Economic Community is also known as European Common Market. Originally six countries viz, France, Federal Republic of Germany, Italy, Belgium, Netherlands & Luxembourg formed into the European Economic Community. By the Treaty of Rome, 1957. it came into being on 1st jan 1958. The number of member countries of the EEC increased from six to nine on Jan 1 1973 as United Kingdom, Ireland & Denmark joined the community. Greece Joined the EEC in 1981 & Portugal & Spain Joined in 1984. Austria, Finland & Sweden joined the community on Jan 1, 1986. Now the EEC has 15 members. The requirements for Joining: -Country must be European - It must be a democratic Country.

OBJECTIVES
OBJECTIVES: EEC consists of the three organizations European Coal & steel community (ECSC), the European Economic Committee (EEC) & the European Atomic Energy Committee (Euratom). ECSC functions for 50 yrs, & the EEC & Euratom functions for an unlimited time duration. The main objective of the EEC: the community shall have its task, by setting up a common market, to promote throughout the community a hormonious development by economic activities, a continuous & balanced expansion , an increase in stability & accelerated raising of the standard of living & closer relation between the Member states belonging to it.

ACTIVITIES
Elimination of custom duties, quantitative restrictions with regard to export & imports of goods among member countries. Establishment/formulation of a common custom tariff & common commercial policy with regrad to non-member countries. Abolition of all obstacles for movement of persons, services, capital among member countries. Formulation of common policy in the area of agriculture & Transport. Establishment of a system which would ensure competition among member countries. Application of programmes in order to co-ordinate the economic policies of the member countries. Establishment of European Investment bank for mobilisation of fresh resources & to contribute to the economic development of the community. Development of association with foreign countries to promote jointly the economic & social development. Establishment of European Social Fund with a view to enhance the employment oppurtunities for workers & to improve their living standards.

ORGANISATION OF EEC
European Council: acts as Making routine decisions. Formulating rules of conduct. Preparing new legislation. Enabling members to carry out the provisions of the Treaty. EUROPEAN COMMISSION: Ut assists the commission assists the council.this is the executive body of the EEC. The member of this commission are appointed for a period of four years which can be renewed. One or more EEC policies are entrusted to each commissioner. Each commissioner is assisted by a chief of cabinet of his country. These assistants take decisions on behalf of their commissioners. COURT OF JUSTICE: There is a court of justice to adjudicate disputes relating to agriculture,social security for migrants among the member countries & competition policy. The court also adjudicates disputes between the member countries brought by the commission against the council or commission reported by a person a company.

 COURT OF AUDITORS: court of auditors was appointed as a part of the EEC by amending the Treaty of Rome. The activities of the court of auditors include: auditing the EEC Monitoring the EECs expenditure. Laying down improved procedures for collection of duties & levies. EUROPEAN PARLIAMENT: The European Commission should consult the parliamnet before a final decision taken. The parliament acts through the Parliamentary committee. The activities of the European Parliament include: - provide consultation & information to the commission. - approve or reject the draft budget prepared by the commission. - dismiss the commission , if necessary. ADVISORY COMMITTEE: - Economic & social Committee. -Monetary Committee -Consultative committee.

FUNCTIONING OF THE EEC

COMMON AGRICULTURE POLICY (CAP): - Agricultural products are free to move from one member country to other member countries. - Imports are allowed only when the demand for a product is more than its supply. Variable import levy is used to offset any price advantage to the importers. - If the community supply is more than the demand, subsidies are allowed to export or to encourage additional consumption among the member countries. - EEC reformed is CAP by introducing cuts in subsidies in july 1992 with view to make its agriculture more competitive globally. - EEC has achieved self sufficiency in agriculture. - Some of the farmers of the farmer to become richer, but the poor farmers incurred loss. - Since the support prices are set at higher levels, cnsumers are deprived of the benefit of lower prices.

COMMON FISHERIES POLICY

EEC member countries agreed for a common fisheries policy in October 1970. this policy came into force in Feb-1971. Features of this policy include: Market for fresh frozen & preserved fish. Common market standards & facilities for trading among members. Equal access to fishing areas to all the nationals of the EEC countries.

EUROPEAN MONETARY UNION

Exchange rate Mechanism. European Currency Unit. European Monetary Co-operation Fund. Factor Mobility. Regional Development Policy. European Investment Bank. European Social Fund. European Regional Development Fund.

COMMON TRANSPORT POLICY

The Objectives of the Policy are: Removal of obstacles for having a common transport policy with a view to have common market. Integration of Transport facilities of the entire community. Organization & control of the transport system within the community.