Chapter 3 International Economic Cooperation

Trend Towards Economic Unity in Europe Since 1950

Sub-Theme 2 The Quest for Cooperation and Prosperity

Time Track

Trend Towards Economic Unity in Europe Since 1950

The EC renamed the EU1992

The EEC was renamed the EC1967

EFTA formed1960

The EEC formed1957

The ECSC formed1952

EventEventYearYear

The ECSC (1952)

Aims

• A response to the Marshall Plan

• All duties and restrictions on trade in coal, iron and steel of the member

states were removed

Major development

• Britain refused to join

Trend Towards Economic Unity in Europe Since 1950

The EEC (or the Common Market) (1957)

Aims

• An important step to turn Western countries into a single European unity

• It worked towards a much closer union

Significance

• It provided great benefit to the member states• Labour and capital flowed freely within the Common Market• It became the world’s largest exporter of raw materials

Trend Towards Economic Unity in Europe Since 1950

The EFTA (1960)

Aims

• It was formed by Britain with other non-EEC countries

• Tariffs were abolished and free trade was established between member

states

Significance

• It was less successful than the EEC• So, Britain wanted to join the EEC but was rejected

Trend Towards Economic Unity in Europe Since 1950

The EC (1967)

Origins

• It was renamed from the EEC

• Britain gained entry in 1973

Major development

• The Exchange Rate Mechanism was introduced in 1979• The Common Agricultural Policy was carried out• The Single European Act was signed in 1986• The Treaty of Maastricht was signed in 1991

Trend Towards Economic Unity in Europe Since 1950

The EU (1992)

Origins

• The EC was renamed the EU in 1992

Major development

• By the mid-1990s, the Community had been a great success economically• It brought prosperity to the member states

Trend Towards Economic Unity in Europe Since 1950

The End