The European Coal and Steel Community: WWW - Ovidiuioandumitru
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THE EUROPEAN ECONOMIC COMMUNITY
AND
THE EUROPEAN ATOMIC ENERGY COMMUNITY
Three of the founding states of the ECSC (Belgium, The Netherlands and Luxembourg)
had already formed themselves into the Benelux customs union. From 1 January 1948, customs
barriers were removed between Belgium, The Netherlands and Luxembourg and a common
customs tariff was agreed between them in relation to the outside world. The effect of this was
that goods could freely pass between the three countries, with minimal formalities. Customs
duties levied on goods originating within the three countries were abolished and goods entering
from outside would have a uniform customs tariff applied to them. In 1954 they also authorised
a free flow of capital, which meant a freedom of investment and unrestricted transfer of currency
within the three countries, and in 1956 they accepted free movement of labour. The internal
trade of these countries between 1948 and 1956 increased by 50 per cent. This mini-common
market proved to be profitable to all the three countries involved and its success whetted the
appetites of neighbouring states and led to pressure to project this experiment on a European
scale.
That pressure created the political climate for a much more ambitious project. On 25
March 1957 the EEC Treaty was signed in Rome by the six founding states of the ECSC, the
aim being to establish a European Economic Community (EEC) in goods, labour, capital and
services among these six states.Establishing the European Atomic Energy Community
(Euratom) for cooperation in the use of atomic energy was signed. The EEC and Euratom
Treaties came into force on 1 July 1958, following their ratification by the six states.
This resulted in the existence of three communities: EEC, ECSC and Euratom, which
were collectively referred to as the European Communities. As stated above, the ECSC expired
on 23 July 2002, and therefore it is the EEC (later to be renamed the EC) and Euratom which are
now collectively referred to as the European Communities.
The Preamble to the EEC Treaty set out the objective of the contracting parties: to lay
the foundations of an ever closer union among the peoples of Europe to ensure the economic and
social progress of their countries by common action to eliminate the barriers which divide
Europe... [to secure] the constant improvement of the living and working conditions of their
peoples... [and] to strengthen the unity of their economies and to ensure their harmonious
development by reducing differences existing between various regions... [and] by means of a
common commercial policy, to ~[secure] the progressive abolition of restrictions on
international trade.
The common market, which was created by the EEC Treaty, covered the whole
economic field except those areas falling within the scope of the ECSC or Euratom. It involved
the creation of a customs union, which required the abolition of all customs duties and
quantitative restrictions in trade between the Member States, a common external tariff, and
provisions for the free movement of labour, business and capital.
These objectives reflected what had already largely been achieved in the Benelux states,
the aim being to create, on a Community scale, economic conditions similar to those in the
market of a single state; similar to the position in the UK where goods, persons, services and
capital can move freely between England, Scotland, Wales and Northern Ireland.
As initially formulated, Art 3 of the EEC Treaty vested the Community with power to
pursue the following activities:
a) the elimination, as between Member States, of customs duties and of quantitative
restrictions on the import and export of goods, and of all other measures having equivalent
effect;
b) the establishment of a common customs tariff and a common commercial policy
towards third countries;
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c) the abolition, as between Member States, of obstacles to the free movement of
persons, services and capital;
d) the adoption of a common agricultural policy;
e) the adoption of a common transport policy;
f) the creation of a Community competition policy;
g) the approximation of the laws of the Member States to the extent required for the
proper functioning of the common market; and . the association of overseas countries and
territories in order to increase trade and promote economic development.
Article 3 was vital to empower the Community (through its institutions) to pursue these
economic activities and thus secure the four features of the common market discussed above, i.e.
the free movement of goods, labour, business and capital.
The main institutions of the EEC:
a) the Commission,
b) the Council of Ministers,
c) the Assembly and
d) the Court of Justice - were modelled on those of the ECSC, and the Community had a similar
legal structure.
In contrast, the object of Euratom was to develop nuclear energy, distribute it within
the Community and sell the surplus to the outside world. For political reasons originally
associated with France's nuclear weapons programme and, subsequently, as a result of
widespread doubts about the safety and viability of nuclear power, Euratom never developed as
originally envisaged. Euratom has, however, remained an important focus for research and the
promotion of nuclear safety.
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This objective was set out in EEC Treaty (added by the SEA), where the internal market
was described as 'an area without internal frontiers in which the free movement of goods,
persons, services and capital is ensured'.
Increasing the European Parliament's legislative powers
Until 1979 members of the European Assembly were nominated by their national
parliaments. The first direct elections to the newly named European Parliament took place in
June 1979, and their effect was that the Parliament became the only directly elected European
institution. It had, at the same time, only a consultative status in the legislative process. It was
often said that the European Commission proposed legislation and the Council of Ministers
disposed of it (i.e. adopted it). This situation generated pressure on the Member States to address
the 'democratic deficit' in the Communities' decision making.
The SEA added a new 'cooperation procedure' to the Treaties, giving the Parliament a
much more important role in the legislative process in four areas:
a) prohibition of discrimination on the grounds of nationality (now Art 12 EC Treaty,
previously Art 6);
b) the achievement of the free movement of workers (now Art 40 EC Treaty, formerly
Art 49);
c) promotion of the right of establishment (now Art 44 EC Treaty, formerly Art 54);
d) measures for implementation of the internal market (now Art 95 EC Treaty,
formerly Art 100a).
This new legislative procedure required the Council of Ministers to cooperate with the
Parliament. The Parliament would for the first time have a real input into the legislative process
(being able to propose amendments). In addition to Parliamentary input, legislative measures in
these four areas could be adopted by the Council by 'qualified majority' rather than unanimity,
thus overriding the objections of a Member State.
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2) Common Foreign and Security Policy - Title V (Art J)
3) Cooperation in Justice and Home Affairs - Title VI (Art K).
Objectives of the European Union
Article B set out the objectives of the Union, some of which mirrored those contained in
the founding Treaties as amended.
Protection of human rights
Article F(2) TEU provided that the Union would respect fundamental rights 'as
guaranteed by the European Convention for the Protection of Human Rights and Fundamental
Freedoms as general principles of Community law'.
However, Art L TED provided that all the common provisions (which included Art F(2)
TED) were not justiciable by the European Court of Justice, i.e. the Court did not have the
power to rule on their application or validity. Despite this, it was possible that the Court of
Justice would take the common provisions into account, including Art F(2), when interpreting
the founding Treaties, as amended.
The two intergovernmental pillars
The second and third pillars of the Union, not being inserted into the amended founding
Treaties, remained outside the formal structures of the European Communities. These two
pillars, as previously mentioned, related to a Common Foreign and Security Policy and to
Cooperation in the fields of Justice and Home Affairs.
Although being intergovernmental in nature, and thus falling outside the formal
Community structure, they did have a connection in that some of the Community institutions (in
particular the Council of Ministers) played a part in these policy areas.
It was argued that, over a period of time, these two pillars would be subsumed into the
formal Community structure. This would be achieved by amending the founding Treaties. If this
happened, all Community institutions could play part in these policy areas, perhaps with a
greater role for the European Parliament. This approach had already occurred in relation to the
Single European Currency policy, which had initially been introduced on an intergovernmental
basis by the SEA, but was subsequently incorporated into the formal EC structure.
Under the TEU, prior to its amendment by the Treaty of Amsterdam, the Court of
Justice was excluded from exercising its powers in matters dealt with under these two pillars
(except for certain very limited exceptions) - Art L TEU.
As its name suggests, the second pillar (Common Foreign and Security Policy)
provides for joint foreign action and security (i.e. defence) action by the Member States. This
action would be adopted by a unanimous vote of the Council of Ministers.
However, there was provision for the Council to provide that certain decisions could be
taken by a qualified majority vote (see Art J.3, para 2 TED). There was minimal involvement of
the Parliament and the Commission in the process. Article L TED excluded the Court of Justice
from ruling on these provisions.
The third pillar (Cooperation in Justice and Home Affairs) provided for cooperation in
policy areas such as asylum, immigration, 'third country' nationals, international crime (e.g.
drug trafficking) and various forms of judicial cooperation. Action would again be taken by the
Council of Ministers acting unanimously, with very limited provision for qualified majority
voting (see Art KA, para 3 TED). There was very little involvement of the Parliament and the
Commission. Once again, Art L TED applied to exclude the Court of Justice from ruling on
these provisions.
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Amendments to the EEC Treaty
The EC Treaty is the most important of the three founding Treaties. Amendments made
to the EC Treaty by Art G (i.e. Title II) TEU were as follows:
a) the creation of a citizenship of the European Union (former Art 8 EC Treaty, now
Art 17 following renumbering by the Treaty of Amsterdam;
b) common economic and monetary policy, with a timetable for the implementation of
a common currency (formerly Arts 102a-l09m EC Treaty, now Arts 98-124);
c) the adoption of the principle of subsidiarity (formerly Art 3b EC Treaty, now 5);
d) the amendment of the decision-making process - extension of qualified majority
voting for the adoption of Council acts into new policy areas, and further powers given to
Parliament; and . new areas of tasks and activities were introduced (Arts 2 and 3 EC Treaty were
amended).
Articles 2 and 3 EC Treaty, as amended by the TEU, extended the tasks and activities of
the European Community beyond the purely economic, and incorporated political and social
goals. Article 2 (post-TEU, but pre-Treaty of Amsterdam) provided that:
The Community shall have as its task, by establishing a common market and an
economic and monetary union and by implementing the common policies or activities referred
to in Articles 3 and 3a, to promote throughout the Community a harmonious and balanced
development of economic activities, sustainable and non-inflationary growth respecting the
environment, a high degree of convergence of economic performance, a high level of
employment and of social protection, the raising of the standard of living and quality of life, and
economic and social cohesion and solidarity among Member States.
Article 3 (post- TEU, but pre-Treaty of Amsterdam) provided that:
For the purposes set out in Article 2, the activities of the Community shall include, as
provided in this Treaty and in accordance with the timetable set out therein:
(a) the elimination, as between Member States, of customs duties and quantitative restrictions
on the import and export of goods, and of all measures having equivalent effect;
(b) a common commercial policy;
(c) an internal market characterised by the abolition, as between Member States, of obstacles
to the free movement of goods, persons, services and capital;
(d) measures concerning the entry and movement of persons in the internal market as provided
for in Article 1O0c;
(e) a common policy in the sphere of agriculture and fisheries;
(f) a common policy in the sphere of transport;
(g) a system ensuring that competition in the internal market is not distorted;
(h) the approximation of the laws of the Member States to the extent required for the functioning
of the common market;
(i) a policy in the social sphere comprising a European Social Fund;
(j) the strengthening of economic and social cohesion;
(k) a policy in the sphere of the environment;
(I) the strengthening of the competitiveness of Community industry;
(m) the promotion of research and technological development;
(n) encouragement for the establishment and development of trans-European networks;
(0) a contribution to the attainment of a high level of health protection;
(p) a contribution to education and training of quality and to the flowering of the cultures of the
Member States;
(q) a policy in the sphere of development cooperation;
(r) the association of the overseas countries and territories in order to increase trade and promote
jointly economic and social development;
(s) a contribution to the strengthening of consumer protection;
(t) measures in the spheres of energy, civil protection and tourism.
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Art 5; proceedings against Member States are to be brought under Art 226 EC Treaty, and not
Art 169; references to the Court of Justice under what used to be Art 177 EC Treaty are now to
be brought under Art 234. The wording of these provisions remains identical in most cases. A
table of equivalent provisions is published at the beginning of this book. Care must be taken
when using old textbooks, and referring even to recent cases of the Court of Justice, marrying
the old provisions up to the new. The new numbering structure contained in Art 12 ToA came
into effect on 1 May 1999. For some time, however, it will be necessary to be aware of both the
old and new numbering. Subsequent chapters of this book are based on the new Treaty numbers
but, where relevant, cross-references to the old Treaty numbers are made.
ToA provisions
The Treaty is divided into three parts:
1) Part One (Arts 1-5) contains substantive amendments to, inter alia, the TED and the
EC Treaty.
2) Part Two (Arts 6-11) contains provisions to simplify the TED and Community
Treaties, which includes the deleting of lapsed provisions.
3) Part Three (Arts 12-15) contains general and final provisions, which includes
provisions which renumber articles of the TED and the EC Treaty. This renumbering will create
some confusion because case law of the Court of Justice and legislation which predates the
coming into force of the ToA will refer to the old numbering.
Amendments made to the TEU by the ToA will be considered first, followed by those
made to the EC Treaty.
Amendments to the TEU
The TED articles have been renumbered by the ToA. Amendments made will be
considered under the relevant Titles of the TEU.
Title I - Common provisions
The articles of Title I have been renumbered from Arts A-F TED to 1-7 TEU; the
provisions themselves have also been amended. In particular, Art 6(1) TED now provides that:
The Union is founded on the principles of liberty, democracy, respect for human rights and
fundamental freedoms, and the rule of law, principles which are upheld by the Member States.
A new Art 6(3) TEU provides that: The Union shall respect the national identities of its
Member States.
A new Art 7 TEU has been inserted which provides for the Council of Ministers to
suspend certain rights under the Treaty (including voting rights) of any Member State if the
Council determines that the Member State has committed a 'serious and persistent breach' of the
Art 6 TEU principles.
As discussed above, the former Art F(2) TEU (now Art 6(2)) provides that: The Union
shall respect fundamental rights as guaranteed by the European Convention of Human Rights
and Fundamental Freedoms. .. as general principles of Community law.
The former Art L TEU provided that all the common provisions (which included the
former Art F(2)) were not justiciable by the Court of Justice. Article L TED has been
renumbered Art 46 and has been amended by the ToA to provide that Art 6(2) TED shall now be
justiciable by the Court of Justice, meaning that the Court can explicitly take account of the
Convention rights.
Titles II, III, W - Amendments to the founding Treaties
The articles of Titles II, III and IV have simply been renumbered from Arts G, Hand I
TED, to Arts 8, 9 and 10 TED, respectively.
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The three pillars of the European Union
It was discussed above that the ED was founded upon three pillars:
1) The European Communities - EC; ECSC (now expired); Euratom
2) Common Foreign and Security Policy (Title V)
3) Cooperation in Justice and Home Affairs (Title VI).
The major substantive change made by the ToA is to amend this structure and
incorporate part of the third pillar (Justice and Home Affairs) into the EC Treaty, thus forming
part of the first pillar.
Title V - Common Foreign and Security Policy
The articles of Title V have been renumbered from J.1-J.11 TEU to Arts 11-28 TEU.
This remains the second pillar of the ED. Although the ToA has made some amendments to the
main provisions of Title V, the role of the European Parliament has not changed and the
exclusion of the Court of Justice from adjudicating on the provisions remains. The Secretary
General of the Council of Ministers will now act as the 'High Representative' (i.e. the
spokesperson) for the Common Foreign and Security Policy.
These provisions will therefore allow flexibility in the future development of the ECs
and the EU, recognising the right of Member States to 'opt-out' from new policy initiatives not
otherwise covered by the Treaties. A similar flexibility clause has been inserted into the EC
Treaty.
Title VI - Police and Judicial Cooperation in Criminal Matters
The articles of Title VI have been renumbered from K.I-K.9 TEU to Arts 29-42 TEU.
This is the third pillar of the EU and, as discussed above, it should be noted that the title has
changed from 'Cooperation in Justice and Home Affairs' to 'Police and Judicial Cooperation in
Criminal Matters'. This is to reflect the fact that those provisions of the former third pillar
relating to visas, asylum, immigration and other policies relating to the free movement of
persons have been incorporated into the EC Treaty with the insertion of a new Title VI EC
Treaty.
The new third pillar states the Union's objective as being able to 'provide citizens with a
high level of safety within an area of freedom, security and justice' (Art 29 TEU), and to develop
'common action' among the Member States in the field of police and judicial cooperation and by
preventing and combating racism and xenophobia.
Article 29 TEU stipulates that this will be achieved by:
Preventing and combating crime, organised or otherwise, in particular terrorism,
trafficking in persons and offences against children, illicit drug trafficking and illicit arms
trafficking, corruption and fraud.
The European Parliament is given an increased consultative role in the decisionmaking
process and the Court of Justice will generally have jurisdiction over most of the provisions.
Figure 1.2 illustrates the structure of the EU, following the ToNs amendments to the third pillar.
Title VII - Closer cooperation
This new title was inserted into the TEU by the ToA and contains three articles (Arts 4345) which enable Member States to establish closer cooperation between themselves and to use
the institutions, procedures and mechanisms of the TEU and EC Treaty.
However, Art 43(c) TEU provides that these provisions can only be used as a 'last resort
where the objectives of the.
Title VIII - Final provisions
The articles of Title VIII have been renumbered from L-S TEU to Arts 46-53 TEU.
Article 49 TEU (previously Art 0) has amended the procedure for the admission of new Member
States. New Member States must have respect for the fundamental principles set out in Art 6
TEU (see above); the Council of Ministers will act unanimously after receiving the opinion of
the Commission and the assent of the European Parliament.
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Amendments to the EC Treaty
Article 2 EC Treaty has been amended to include new tasks:
a) promotion of equality between men and women;
b) a high level of protection and improvement of the quality of the environment;
c) promotion of a high degree of competitiveness; and . economic development which
must be 'sustainable' as well as 'balanced and harmonious' .
The new Art 2 EC Treaty provides that:
The Community shall have as its task, by establishing a common market and an
economic and monetary union and by implementing common policies or activities referred to in
Articles 3 and 4, to promote throughout the Community a harmonious, balanced and sustainable
development of economic activities, a high level of employment and of social protection,
equality between men and women, sustainable and non inflationary growth, a high degree of
competitiveness and convergence of economic performance, a high level of protection and
improvement of the quality of the environment, the raising of the standard of living and quality
of life, and economic and social cohesion and solidarity among Member States.
Article 3 EC Treaty lists the activities of the Community which can be undertaken in
order to achieve the tasks set out in Art 2. Article 3 has been amended to include a new activity
(the other activities already cover the new Art 2 tasks): The promotion of coordination between
employment policies of the Member States with a view to enhancing their effectiveness by
developing a coordinated strategy for employment.
A new Art 3(2) EC Treaty provides that: In all the activities referred to in this Article,
the Community shall aim to eliminate inequalities, and to promote equality, between men and
women.
The other main amendments to the EC Treaty by the ToA include:
a) Article 11 EC Treaty inserts a flexibility clause similar to that in Title VII TEU
(discussed above) allowing Member States to establish closer cooperation between themselves
and to make use of the institutions, procedures and mechanisms laid down in the EC Treaty,
provided the cooperation proposed does not, inter alia, 'concern areas which fall within the
exclusive competence of the Community'.
b) Article 13 EC Treaty (previously Art 6a) provides a new non-discriminatory provision
which confers legislative competence on the Community to combat discrimination based on sex,
racial or ethnic origin, religion or belief, disability, age, or sexual orientation.
c) Articles 61-69 (Title IV) EC Treaty incorporate part of the former third pillar of the
European Union which covers visas, asylum, immigration and other policies relating to the free
movement of persons.
d) Articles 125-130 (Title VIII) EC Treaty insert a new title on employment, reflecting
the new activity set out in Art 3 EC Treaty.
e) Articles 136-143 EC Treaty incorporate an amended version of the Social Policy
Agreement, which will apply to all Member States; at Amsterdam the then-newly elected UK
Labour Government agreed to end its opt-out.
f) Titles XIII and XIV EC Treaty on public health and consumer protection, respectively,
have been enhanced.
g) The decision-making process has been amended and the European Parliament has
been given a greater role in more policy areas.
h) Minor amendments have been made to the composition and/or role of some of the
Community institutions.
Conclusion
The TEU provided for the European Union to be founded upon three pillars; these pillars
were amended by the ToA. We are primarily concerned with the first pillar, i.e.
the European Communities pillar. The European Communities now comprises of two separate
and distinct Communities, the most important of which is the European Community (formerly
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labelled the European Economic Community) which was established by the Treaty Establishing
the European Community.
Even though we confine ourselves to a consideration of the EC Treaty, it should not be
forgotten that the ECs and the EU have evolved over a period of little more than 50 years.
During this time the change that has been brought about has resulted in more, not less,
integration. What started off as a predominantly economic market now has a political and social
agenda. Each time the founding Treaties are amended the end result is that more areas of
competence are transferred by the Member States to the Community.
The Treaty of Nice (ToN) was agreed by the Member States in December 2000. It was
formally signed by the Member States on 26 February 2001 but it could only come into force
once it had been ratified by them. In a referendum during June 2001, the Irish people, by a
majority of 54 per cent to 46 per cent, refused to ratify the Treaty of Nice. The other fourteen
Member States had already ratified, or subsequently ratified, the Treaty. Ireland held a second
referendum during October 2002, and this time there was a positive vote in favour of ratification
(63 per cent to 37 per cent).
The Treaty came into force on 1 February 2003, having been ratified by the fifteen Member
States.
A summary of the main amendments which have been made to the EC Treaty and TEU
by the ToN follows.
Institutional reform
The main reason for a new Treaty amending the EC Treaty and TEU was to reform the
institutions in preparation for enlargement of membership of the Communities. The EC
Treaty has been amended to enable an enlarged membership of up to 27 Member States.
An enlarged Union of 25 Member States on 1 May 2004 will necessitate further
amendments to the Treaties, therefore the European Council is working towards another InterGovernmental Conference ('IGC') during 2004 when the 'Future of the Union' will be further
determined.
Fundamental rights
Article 7 TEU provides for the suspension of a Member State's Treaty rights where there
has been a 'serious and persistent' breach of the Art 6(1) TEU principles (i.e. the principles of
liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law).
The ToN amends Art 7 to provide that the suspension can be imposed where the Council of
Ministers votes by a four-fifths majority of its membership. Prior to the ToN it had required a
unanimous vote by the Council. The role of the other institutions in this process has not been
changed.
Security and defence
Article 25 TEU provides for the monitoring of the international situation within the areas
covered by the second pillar (Common Foreign and Security Policy), and the development of
associated policies. In a meeting of the European Council, immediately prior to the meeting
where the ToN was agreed, a policy for the establishment of a european rapid reaction force was
adopted. This 60,000-strong force will be used primarily for peacekeeping and emergency
missions within the region.
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Eurojust
Articles 29 and 31 TEU have been amended to provide that in the application of the third
pillar (provisions on Police and Judicial Cooperation in Criminal Matters) there shall be
cooperation with, inter alia, the European Judicial Cooperation Unit (Eurojust). A declaration
specifies that Eurojust shall comprise national prosecutors and magistrates (or police officers of
equivalent competence) who are detached from each Member State.
Enhanced cooperation
Articles 43-45 (Title VII) TEU have been substantially amended to further the prospect
of a minimum of eight Member States establishing closer cooperation between themselves and
to use the institutions, procedures and mechanisms of the TEU and EC Treaty. Like the
existing provisions, the amended provisions provide that closer cooperation can be undertaken
only if it is 'aimed at furthering the objectives of the Union and the Community, at protecting
and serving its interests'. The new provision also requires that 'enhanced cooperation may be
engaged in only as a last resort, when it has been established within the Council that the
objectives of such cooperation cannot be attained within a reasonable period by applying the
relevant provisions of the Treaties'. This is discussed further, below.
New policies
Only a few new policies have been introduced, although some polices have been refined.
One new policy relates to economic, financial and technical cooperation with third states
following the insertion of a new Title XXI EC Treaty. This new policy shall 'contribute to the
general objective of developing and consolidating democracy and the rule of law, and to that of
respecting human rights and fundamental freedoms'.
Decision-making process
Some legal bases for the adoption of secondary Community instruments which
originally required a unanimous vote by the Council of Ministers in order to be adopted, have
been amended to provide for their adoption by a qualified majority. In addition, the role of the
Parliament has been enhanced within selected policy areas.