economic integration. goes through different steps. first level is the simplest
that is basic. free trade. that proposes two states agree that they shall not charge customs duties on each others’ products.
They may charge duties against groups outside the free area.
customs union is a stage further
state A and B. what is difference between free trade area and customs union?
CUstoms union is more integrated. There is a difference in their relations to state C. A and B agree on a certain level of tax against state C
both charge 10 % say against state C products
move further in economic integration
there is no customs tariff. there is a common external tariff
taxation is not there – that is nation state realm.
four freedoms. goods, capital, people and services. (establishment)
EEC aim was a common market. 1986 sINGLE European Act.
monetary union was one of the eventual goals of the EU. European Monetary Union was agreed on.
some countries were not allowed to participate.
1962. empty chair crisis. France refuses to show up to meetings. agreements had to be unanimous
cheap oil. crisis 1970s. EEC needed stronger members with better economies. They needed the UK. North Sea Oil had been discovered.
1986. Single European Act. it is a treaty despite the word act.
establishment of a common market
after 30 years. conditions were met. one could have the four freedoms.
EEC made the internal market
deepened integration. name changed from EEC to European Community
enlargement of EEC. Greece came in. Spain came in 1986 so did Portugal.
EEC was concerned about economic opportunities in 1980s.
this was due to cold war
Spain had preferential trade deals with former colonies. when spain aceded to the EEC this meant these sweetheart deals applied to the whole EEC
if you leave countries outsde the EEC they become weaker and could return to authoritarianism
portugal, spain and greece could have returned to dictatorship
EU had to respond to end of cold war
EU had to be able to respond to crisis in former Yugoslavia. Maastricht Treaty
Pillar structure introduce.
community pillar. first pillar. all common. supra national.
CAP for instance
commone foriegn and security policy. second pillar
this was inter governmental. The idea was to make it supra national in the end
Justice and home affairs. pillar.