Definition and legal foundations of the European Economic Community (EEC)
Die European Economic Community (EEC) was a supranational organization founded in 1957 by the Treaty of Rome. Its aim was to create a Common Market and promote an integrated economic area among the member states. The EEC is one of the fundamental building blocks of today’s European Union (EU). For an understanding of the term EEC, both its historical development and its comprehensive legal framework during its existence are of central importance.
Sources and nature of law
Treaty of Rome
Signed on 25 March 1957 and in force since 1 January 1958, the Treaty establishing the European Economic Community (EEC Treaty) formed the legal foundation of the EEC. The treaty was later referred to as the EC Treaty (Treaty establishing the European Community).
International legal organization
The EEC was an independent entity under international law with its own legal personality. Its powers exceeded those of a typical intergovernmental organization since it withdrew sovereign powers from member states and transferred them to the Community.
Founding members and institutions
Founding members
The EEC was founded by six states: Belgium, Germany (then Federal Republic of Germany), France, Italy, Luxembourg, and the Netherlands. Enlargements followed in subsequent years.
Institutions and structure
The EEC initially had four main institutions:
- Die Commission (executive body of the Community)
- Der Council of Ministers (representing the member states)
- Die Parliamentary Assembly (later European Parliament)
- Der Court of Justice (ECJ)
These institutions had varying powers to perform the Community’s tasks. The structure of the EEC essentially corresponds to the framework of today’s European Union.
Purpose and functions
Common Market
The central objective of the EEC was the establishment of a Common Market. This included:
- free movement of goods
- freedom to provide services
- free movement of capital
- free movement of persons
Legally, this required dismantling trade barriers and prohibiting discrimination between member states. This included the elimination of tariffs and quantitative restrictions as well as the creation of common market regulations.
Competition and economic policy
Another key objective was ensuring undistorted competition within the internal market. The EEC had its own rules and instruments of competition law (Art. 85 et seq. EEC Treaty), regulations on state aid (Art. 92 et seq. EEC Treaty), and common policies including agriculture (CAP).
Social, regional, and external trade policy
Additionally, the EEC implemented measures for social balancing, regional development, and the shaping of common external trade relations. This took place, for example, through the coordination of social policy and establishment of a common external tariff.
Legal effects and Community law
Primacy and direct effect
Within its areas of competence, the EEC developed an autonomous Community law. Key principles:
- Primacy of application: Community law takes precedence over the national law of the member states within the relevant areas of competence.
- Direct effect: Certain provisions of Community law can confer direct rights and obligations upon natural and legal persons. The European Court of Justice confirmed this in landmark decisions (e.g. Case 26/62 – Van Gend & Loos).
Sources of EEC law
The principal sources of law were:
- Primary law: Treaties and their amending acts (especially the EEC Treaty)
- Secondary law: Regulations, directives, decisions
- General legal principles: Developed further by case law
Enforcement of EEC law
Enforcement of EEC law was carried out both by the Community’s institutions and the national courts of the member states. The Court of Justice played a central role in developing the Community legal order, such as by creating independent forms of legal action (e.g. infringement proceedings).
Development and transformation into the European Union
Revisions and treaties
The EEC Treaty was amended several times over the years (e.g. by the Single European Act 1987, the Maastricht Treaty 1992, the Amsterdam Treaty 1997). With the entry into force of the Maastricht Treaty (1993), the EEC was renamed the European Community (EC) Within the new pillar structure, the EC was the most important pillar of the European Union.
Integration into the European Union
With the Treaty of Lisbon (2009), the EC and its institutions were fully integrated into the EU. The EEC as an independent organization has no longer existed since then; its legal acts and structures have been absorbed by the current EU. However, case law and numerous legal principles continue to have an effect to this day.
Significance of the term in current law
Although the EEC no longer exists as an independent organization, its term and legal foundations remain of historical and systematic importance. EEC law is still relevant within the framework of EU law (the so-called Acquis communautaire) for example in the interpretation of primary law principles, the development of fundamental freedoms, or the jurisprudence of the Court of Justice of the European Union.
References and further reading
- Treaty establishing the European Economic Community (EEC Treaty), 1957
- Maastricht Treaty, 1992
- Amsterdam Treaty, 1997
- Lisbon Treaty, 2007
- Case law of the European Court of Justice (including Case 26/62 Van Gend & Loos)
- Commentary: Grabitz/Hilf/Nettesheim, Law of the European Union
- Frowein/Peukert, European Convention on Human Rights – ECHR Commentary
Summary: The European Economic Community (EEC) is of central importance as the starting point of the European integration process, for the creation of the Common Market, and for the development of an independent supranational legal order in Europe. Its legal foundations, structures, and principles continue to shape Union law today.
Frequently asked questions
What legal foundations governed the establishment and functioning of the EEC?
The legal foundations of the European Economic Community (EEC) were primarily established by the Treaty establishing the European Economic Community, known as the Treaty of Rome of 25 March 1957. This treaty formed the legal framework for the organization, institutions, decision-making procedures, and the fundamental freedoms of the EEC. The treaty set out, among other things, the objectives of economic integration, the creation of a common market, and explicit mechanisms for establishing a customs union as well as harmonizing economic and competition policy. Over time, further treaties and amending protocols were added (e.g. the Single European Act and the Maastricht Treaty), updating or adapting the original EEC legal provisions. Interpretation and application of these laws was overseen by the European Court of Justice (ECJ), which had final legal authority on Community law matters.
How was the relationship between EEC law and national law regulated?
The relationship between EEC law and national law was legally governed by the principle of the primacy of Community law. This means that in case of conflict, EEC law took precedence over national law and could displace national regulations if they were incompatible with Community requirements. This principle was expressly established in landmark judgments of the European Court of Justice, notably in the Costa/ENEL case (1964). Member states were thus obliged to set aside or adapt national law that contradicted EEC regulations and directives. In addition, the principle of direct effect meant that certain provisions of the EEC Treaty could be invoked directly by citizens in national courts.
Which institutions had legislative powers within EEC law?
The key institutions with legislative powers within the EEC were the Council of Ministers (Council of the EEC), the Commission, and the European Parliament, with the Council holding the primary legislative authority. The Commission had the right of initiative for legislative proposals and monitored the enforcement of Community law. At first, the Parliament had merely an advisory role, which was strengthened over time and through treaty amendments. The European Court of Justice served as the judicial body and ensured the interpretation and application of Community law. In addition, there were other advisory and executive bodies such as the Economic and Social Committee.
Which key legal acts could the EEC enact within its powers?
Within its scope of competences, the EEC could adopt various types of legal acts, namely regulations, directives, decisions, recommendations, and opinions. Regulations applied directly in all member states and did not require transposition into national law. Directives had to be implemented by the member states within a set period, allowing flexibility as to form and means. Decisions were binding on those to whom they were addressed (member states, companies, or individuals). Recommendations and opinions were legally non-binding but could have a steering effect, particularly from a political perspective.
How was compliance with EEC law monitored and ensured by member states?
Monitoring and ensuring compliance with EEC law was primarily the responsibility of the Commission, which had the right and duty to initiate infringement proceedings against a member state in case of violations. Such proceedings could be brought before the European Court of Justice, which would determine whether a breach had occurred and, if so, require remedial action. Over time, sanction mechanisms were expanded so that, in cases of repeated violations, financial penalties could even be imposed on the respective state.
To what extent were fundamental rights protected under EEC law?
The original EEC Treaty did not contain an explicit charter of fundamental rights. The protection of fundamental rights was developed during the initial decades mainly through case law of the European Court of Justice, which acknowledged that fundamental rights were included in the Community legal order as general legal principles. This was derived both from the common constitutional traditions of the member states and from the European Convention on Human Rights (ECHR). Later, fundamental rights were increasingly taken into account in treaty texts and ultimately codified in the Charter of Fundamental Rights of the European Union, although the latter only became significant with the EU as the EEC’s successor organization.
What dispute resolution mechanisms existed within EEC law?
Disputes under EEC law were primarily settled through the preliminary ruling procedure (Art. 177 EEC Treaty, now Art. 267 TFEU) and infringement proceedings before the European Court of Justice. The preliminary ruling procedure allowed national courts to refer questions regarding the interpretation or validity of Community law to the ECJ for decision, ensuring uniform application of law across member states. In addition, direct actions could be brought between member states, against Community institutions, or in special cases by natural and legal persons. The ECJ thus served as the central organ for dispute resolution.
