Evolution of the European Union: From EEC to Economic Power
The Evolution of the European Union
Early Stages of European Integration
1950: Robert Schuman presented a proposal for a united Europe, laying the groundwork for future integration.
1957: The Treaty of Rome established the European Economic Community (EEC), uniting Belgium, France, Italy, Luxembourg, and the Netherlands.
1986: Spain and Portugal joined the EEC, expanding its reach and influence.
1992: The Maastricht Treaty renamed the EEC to the European Union (EU), with the intention of building a comprehensive customs union encompassing not only commercial aspects but also political and economic dimensions.
Currently: The EU comprises 27 countries and has emerged as a major economic and commercial power.
Spain’s Accession to the EEC
During the early years of Franco’s dictatorship, Spain faced political and economic isolation, falling behind other European nations. Due to its non-democratic regime, Spain could not initially join the EEC, as democracy was a prerequisite for membership.
Following the establishment of democracy in Spain in 1978, negotiations for accession began, facilitated by the transformation of the Spanish economy. In 1985, the Treaty of Accession of Spain to the EEC was signed in Madrid, and Spain officially became a member in 1986.
The Spanish government aimed to restore Spain’s European cultural and political identity and achieve levels of wealth and prosperity comparable to other member states through this integration.
Monetary Union and the Euro
A key objective of the EU was to establish a monetary union, which was realized in 1999 with the creation of the European Central Bank (ECB). The path to economic and monetary union involved gradually eliminating barriers to the free movement of goods and people.
This unification led to the implementation of a single currency, the euro. The process involved three phases of convergence, requiring member states to meet specific criteria related to inflation, interest rates, and controlled deficit and debt levels.
In 2002, participating countries began using the euro as their currency, operating under the regulatory guidelines of the ECB. Denmark, the UK, and Sweden remain outside the Eurozone.
While the adoption of the euro may contribute to price increases and inflation in the Spanish economy, it offers the benefits of eliminating currency exchange costs and streamlining international transactions.
Unification of Social and Foreign Policy
In 1992, the foundations of European citizenship were established, granting citizens the right to move and reside freely within the EU territory without restrictions. However, it wasn’t until 1995 that the Schengen Area was established, eliminating internal border controls among signatory states.
Conversely, external borders have been reinforced to combat illegal immigration. The EU aims to create a common foreign and security policy (CFSP) to represent and defend European interests in international forums.
European Regional Policy
European regional policy was created to provide aid in the form of investments in infrastructure or training to regions with lower levels of development. Structural Funds were established to promote regional development, followed by the Cohesion Fund.
These funds are sourced from the EU budget and managed by the European Commission. Upon joining the EU, Spain and Portugal were classified among the least developed regions, making many of their provinces eligible for preferential European funding.
With the accession of Eastern European countries, which are comparatively less developed, EU funds have been increasingly allocated to them. This shift has raised the average European development level, potentially reducing the eligibility of some Spanish regions for certain grants.