ORIGIN : EUROPEAN COAL AND STEEL COMMUNITY(1952) AIM: Eliminate import duties and quotas on coal, iron, steel

and scrap. The successful functioning of ECSC stimulated the member countries to extend this facility to all commodities by the TREATY OF ROME in 1957.

TREATY OF ROME gave birth to EEC.

EEC (EUROPEAN ECONOMIC COMMUNITY):

With the introduction of Uniform Monetary Policy, common currency and fiscal policy among the member countries the EEC became EUROPEAN UNION on 1st may 2004.

The requirements for joining the EU as members are The country must be European country. It must be a democratic country.

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EU consists 3 organizations
ECSC EEC EUROPEAN

(50 Yrs)

ATOMIC ENERGY COMMUNITY

The main objective of EEC according to article 2 of THE ROME TREATY of 1957 is
The community shall have its task, by setting up a common market, to promote through out the community a harmonious development by economic activities, a continuous and balanced expansion, an increase in stability and accelerated raising of the standard of living and closer relations between the member states belonging to it.

We study the functions of EU under the following aspects Common Agricultural policy, Common Fisheries policy, European Monetary Union,

Under the CAP, there is a Green Rate for each country and the support price is converted in to the national price at the Green Rate. Farmers are free to produce as much as they can. Agricultural products are free to move from one member country to other member country. Imports are allowed only when the demand for a product is more than its supply. EEC has achieved self-sufficiency in agriculture.

EEC member countries agreed for a common fisheries policy in Oct 1970. this policy came into force in Feb 1971. Feature of this policy includes: Market for fresh frozen and preserved fish. Common market standards and facilities for trading among members. Equal access to fishing areas to all national of the EU countries.

EMU was started in March 1979 with the following features:

Exchange Rate Mechanism(ERM), European Currency Unit, European Monetary Co-operation Fund, Factor Mobility, Regional Development Policy, European Investment Bank, European Social Fund, European Regional Development Fund.