Concept and establishment of the European Community (EC)
Die European Community (EC) was a supranational organization that formed a central component of the European Union (EU) until the Treaty of Lisbon came into force. It originated from the further development of the European Economic Community (EEC) and encompassed a wide range of political, economic, and legal competences. The aim of the EC was to promote the integration of member states in the areas of the common internal market, regional policy, competition law, and other policy fields.
The EC was established on the basis of the Treaty establishing the European Economic Community (EEC Treaty, later EC Treaty) dated 25 March 1957. The treaty entered into force on 1 January 1958. With the Maastricht Treaty (1992), the EEC was officially renamed the European Community and its legal framework was expanded. It was only with the Treaty of Lisbon (2009) that the EC was legally incorporated into the construct of the European Union and ceased to exist as an independent organization.
Legal foundations and structure
EC Treaty (Treaty establishing the European Community)
The legal foundations of the EC were formed by the EC Treaty (formerly EEC Treaty). This treaty regulated the organization, competences, and objectives of the Community, as well as the rights and obligations of the member states. The most important treaty texts were:
- Treaty establishing the European Atomic Energy Community (EURATOM)
- Treaty establishing the European Coal and Steel Community (ECSC, until 2002)
- Treaty establishing the European Economic Community (EEC), later European Community (EC Treaty)
With the transformation of the EEC into the EC by the Maastricht Treaty, the Community acquired legal personality and extensive competences.
Institutions of the European Community
The EC had its own institutions which determined its legal framework. The main bodies were:
- Council of the European Community (Council of Ministers): Legislative and decision-making body, composed of representatives of the member states.
- European Commission: Executive body with the right of initiative and supervisory function over the member states.
- European Parliament: Legislative body with increasing participatory rights, directly elected by Union citizens.
- European Court of Justice (ECJ): Judicial body for the interpretation and enforcement of Community law.
- Court of Auditors: Oversight body of the EC’s public finances.
These bodies simultaneously formed the institutional core of the EU and were primarily responsible for the EC until 2009.
Legal status and legislation
Legal personality and capacity
The EC was an international-law organization with its own legal personality (Art. 281 EC Treaty). It could thus acquire rights, assume obligations, enter into international agreements, and sue or be sued in court.
Sources of law
The law of the European Community was based on various sources:
- Primary law: Founding treaties (e.g., EC Treaty, amending treaties)
- Secondary law: Legal acts issued by the Community institutions such as regulations, directives, decisions, recommendations, and opinions
- General legal principles: Union law principles, such as equal treatment, proportionality, and legal certainty
- International agreements: Treaties with third countries and international organizations
Competences of the EC
The EC had competences in the following core areas:
- Internal market: Creation and assurance of the free movement of goods, persons, services, and capital
- Common commercial policy: Representation of the member states towards third countries
- Competition law: Control of market abuses and merger control
- Agricultural and fisheries policy
- Regional policy: Balancing regional disparities
- Social policy: Free movement of workers, prohibition of discrimination
- Environmental policy
- Research and technological development
The transfer of competences followed the ‘principle of limited conferred powers’. The EC could only act if there was an explicit legal basis in the treaties.
Legal effect
Community law had Direct effect und Primacy over the national law of the member states. This means that EC regulations and, to some extent, directives, applied directly to citizens and companies. National law contrary to Community law was inapplicable.
The enforcement of Community law took place on the one hand by the member states and on the other hand by the organs of the Community itself. Disputes regarding the interpretation and application of EC law were decided by the European Court of Justice.
Development, enlargement, and dissolution
Development and enlargements
Over the course of its existence, the EC underwent numerous enlargements in terms of the number of member states, increasing from its original six to 27 members. With the Maastricht Treaty in 1992, the EC became part of the European Union within a three-pillar model, with the EC as the ‘first pillar’ endowed with supranational powers. The second and third pillars covered the Common Foreign and Security Policy as well as Cooperation in Justice and Home Affairs, which were organized intergovernmentally.
Dissolution and transition into the EU
With the entry into force of the Treaty of Lisbon on December 1, 2009, the EC as an independent organization was dissolved. The European Union assumed its place and took over all the rights and obligations of the EC. The Treaty on the Functioning of the European Union (TFEU) replaced the former EC Treaty, and Union citizenship was further strengthened. Legal succession in particular ensured continuity in the areas of law, administration, and treaties.
Significance and legal legacy
The legal achievements of the EC continue to significantly shape the current framework of the European Union. Many central principles, such as the primacy and direct effect of Union law, competition law, and the fundamental freedoms, emerged from EC case law and legislation. In particular, the comprehensive harmonization of law, the alignment of living conditions, and the protection of fundamental rights are all reflected in current Union law.
Summary:
The European Community was a supranational organization that promoted European integration in the areas of economy, law, and politics. Its complex legal order, based on an independent body of treaties and specialized institutions, forms the foundation of current Union law. With the merger introduced by the Treaty of Lisbon, the EC ended formally, but its legal legacy remains a central part of the European Union.
Frequently asked questions
Which legal foundations underpinned the European Community (EC)?
The legal basis of the European Community (EC) was primarily established by the Treaty establishing the European Community (EC Treaty, also referred to as ECT), which was previously known as the Treaty establishing the European Economic Community (EEC Treaty). With the entry into force of the Maastricht Treaty (1993), the EEC became the EC and was positioned as one of the three pillars of the European Union (EU). The EC Treaty regulated competences, institutions, decision-making procedures, and the legislative instruments of the Community. Essential additions and amendments were made by subsequent treaties such as the Treaty of Amsterdam (1999), the Treaty of Nice (2003), and the Treaty of Lisbon (2009). In particular, since the Treaty of Lisbon in 2009, the EC was integrated into the European Union as its sole legal entity and was dissolved as an independent community, resulting in a full merger of the EC’s legal competences into the EU.
Which legal acts could the European Community adopt, and how did they differ?
The EC was empowered to adopt various types of legal acts, as defined in Article 249 EC Treaty (later Article 288 TFEU). These included regulations, directives, decisions, recommendations, and opinions. Regulations had direct effect and were applicable in all member states without the need for implementation into national law. Directives, in contrast, bound the member states as to the result to be achieved, leaving them the choice of form and means of implementation within a set deadline. Decisions were addressed to specific persons and binding only on those to whom they were addressed. Recommendations and opinions were not binding but served as important guidance for the conduct of the member states. The choice of the appropriate legal act followed the so-called principle of proportionality and the procedures prescribed by the treaty.
How were the institutions of the EC legally structured and what powers did they have?
The EC had its own institutional structure with the main organs: European Parliament, Council of the European Union (formerly Council of Ministers), European Commission, Court of Justice of the European Community, and Court of Auditors. The Council of the EC and the Commission had the power of initiative and decision-making in the legislative process, with the Commission holding the exclusive right of initiative for proposals concerning Community policy. The European Parliament initially had an advisory role, but was gradually elevated—mainly by the Maastricht Treaty—to a co-legislator within the co-decision procedure (now ordinary legislative procedure). The European Court of Justice (ECJ) ensured the uniform interpretation of EC law, decided disputes between institutions, and could initiate infringement proceedings against member states. The Court of Auditors reviewed the legality and regularity of budget management.
To what extent was EC law applicable in the national legal orders of the member states?
EC law took precedence over national law of the member states, a principle developed by the European Court of Justice in its seminal rulings in ‘Costa/ENEL’ and ‘Simmenthal’. This meant that national law conflicting with EC law had to be set aside in case of conflict. Furthermore, EC law was recognized as having direct effect: certain provisions of EC primary and secondary law could be directly invoked by individuals before national courts, provided that they were sufficiently clear and unconditional. National courts were obliged to apply EC law ex officio and, in case of doubt about interpretation, to refer the matter to the ECJ.
What was the significance of the fundamental freedoms in EC law?
The fundamental freedoms—freedom of movement for goods, services, establishment, and workers (supplemented by free movement of capital)—formed the foundation of the EC internal market. They were directly applicable and aimed to remove obstacles between member states to create a single market. These freedoms were enshrined in the relevant treaty articles (e.g., Article 28 et seq. and 39 et seq. EC Treaty). The design and further development of these freedoms was shaped by the extensive case law of the ECJ, especially with regard to the grounds for justification of restrictions and the definition of exceptions for reasons of public interest. They represented a core element for both the integration of the internal market and the practical jurisprudence of national and European courts.
How were disputes resolved within the framework of the EC?
Legal disputes within the EC were primarily decided by the European Court of Justice. Member states, Community institutions, and, under certain conditions, individuals could bring actions, for example by means of annulment actions, actions for failure to act, or preliminary ruling proceedings. Infringement proceedings enabled the Commission to monitor compliance with EC law and sanction breaches by member states. In case of specific doubts about the interpretation or validity of EC law, national courts could refer questions to the ECJ for a preliminary ruling, thus ensuring the uniform interpretation and application of Community law in all member states.
What was the significance of harmonization of law by the EC?
The EC aimed to harmonize the laws of the member states to remove barriers to the internal market and create equal competitive conditions. This was mainly achieved through directives, which set harmonizing minimum standards for national legal systems and thereby lay the foundation for smooth integration. Harmonization covered a wide range of legal areas, including economic law, occupational safety law, environmental law, and consumer protection. In sensitive areas such as taxation or social policy, however, comprehensive harmonization often required unanimity in the Council, which meant the pace and depth of harmonization were influenced by political compromise.
What happened to the EC’s legal provisions after the Treaty of Lisbon?
With the entry into force of the Treaty of Lisbon in 2009, the EC as an independent legal community was dissolved and its competences fully transferred to the European Union. The previous EC law became part of the so-called ‘acquis communautaire’ (Community acquis) and remains in force unless it has been amended or repealed by subsequent legal acts. Since then, there has been only a single legal entity—the European Union—and the separation between EC and EU law no longer exists. The substantive provisions of EC law were mostly incorporated into the Treaty on the Functioning of the European Union (TFEU), which now forms the legal basis for EU policy areas and legal acts.
