From Rome to Lisbon – The development of the EU

The EU we know today began with the establishment of the European Coal and Steel Community in 1952.
The purpose of this community was to prevent hostilities between the members and ensure lasting peace in Europe by making the Member States mutually interdependent.

The original idea was to make the Member States collaborate on the production of coal and steel, commodities which were critical to war industries and also an important part of the trade between the countries.

An independent organisation, a "High Authority", with the capacity to take decisions that were binding on the Member States was also established. The High Authority, which is the predecessor of today's European Commission was independent of the countries' national interests, and was given the task of regulating the market conditions for coal and steel to ensure the common good.

The Coal and Steel Community was founded on an initiative by the French Minister of Foreign Affairs, Robert Schuman, and consisted initially of six countries: France, West Germany, Italy, Belgium, Netherlands and Luxembourg.

In 1957, France, Italy, West Germany and the Benelux countries signed the two treaties of Rome:

• The Treaty establishing the European Economic Community - EEC
• The Treaty establishing the European Atomic Energy Community - EURATOM.

The two treaties created a customs union and a common market based on the principle of free movement of capital, goods, services and people. In addition, research cooperation directed towards energy research was also established.

The three original treaties, the Coal and Steel Community, the EEC and EURATOM had established three different communities, each with its unique institutions. In 1967, the Member States decided to merge the three communities into a united European Community, with the same institutions in one single framework for the European Community, the EC.

Later, the name of the European Community, the EC, changed to the European Union, the EU, as we know it today. The purpose of the name change was to show that European cooperation between Member States is about more than just economic cooperation.

Since the 1950s, the Member States had attempted unsuccessfully to establish a functioning single market. In the early 1980s, the French President of the European Commission, Jacques Delors, decided that something had to be done and presented a proposal for completing the Single Market.

The Delors initiative led to the adoption of a new treaty in 1986, the Single European Act, which reformed the Community's decision-making procedures and made it easier to make decisions. In addition, a deadline for completion of a single market in Europe was set. By 31 December 1992, the national markets of the Member States were to be fully integrated and operate according to the principle of free movement of capital, goods, services and people.

The tools to complete the Single Market were the removal of trade barriers in the form of import restrictions. Similarly, technical barriers were removed by harmonising legislation and by introducing common European standards. Another important element of the Single Market is the principle of mutual recognition. This means that a product lawfully manufactured in one Member State cannot be prohibited from being sold in another Member State. In total, some 300 pieces of legislation were adopted in order to realise the Single Market in 1992.

The EU Single Market has strengthened European competitiveness for the benefit of both businesses and individuals. Consumers have obtained bigger, cheaper and more varied supply, and businesses’ home market has expanded across Europe by approx. 500 million inhabitants.

As European society develops, it is necessary to supplement the Single Market with new legislation, for example the promotion of cross-border commerce over the Internet.

On 1 January 2002, the euro was introduced as a means of payment in 12 EU Member States to replace national currencies. Since then, more countries have followed suit and today 17 EU Member States use the euro as their currency. The Member States that have adopted the euro as their currency are commonly referred to as the euro area or the euro zone.

It is the European Central Bank in Frankfurt which sets interest rates and regulates inflation in the euro zone.

Before an EU Member State can adopt the euro, it must meet a number of conditions concerning interest rates, budget deficits, inflation, sovereign debt and currency stability. As the new EU Member States meet the requirements, they introduce the euro as their national currency. However, Denmark, the UK and Sweden have chosen not to have the euro.

During the Danish EU presidency in 2002, the EU Member States agreed to expand the EU by ten new Member States from mainly Central and Eastern Europe. This was the single biggest enlargement in the history of the EU. The enlargement had its roots in the collapse of Communism and the fall of the Berlin Wall in 1989, which made it possible to unite the European countries in the EU.

In 2007, two more countries entered the EU as Romania and Bulgaria acquired membership. Today, there are thus 27 EU Member States, and number 28 is on its way, as Croatia will join in 2013. In addition, Turkey, Iceland, Montenegro and the Former Yugoslav Republic of Macedonia have obtained candidate status.

Before a candidate country can join the EU, it must implement existing EU legislation and meet standards for democracy, justice and human rights. In addition, the candidate country must also have a well-functioning market economy. The requirements are high and enlargement negotiations may therefore extend over several years.

The enlargement eastward is not the first enlargement in EU history, but it is the largest. Previously, the EU expanded in several stages:

1973: Denmark, Ireland and the UK
1981: Greece
1986: Portugal and Spain
1995: Finland, Sweden and Austria
2004: Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia
2007: Bulgaria and Romania

The Lisbon Treaty is the latest EU treaty and thus the most recent legal basis for the EU. The treaty describes the role of the various EU institutions, the EU’s influence and the principles of cooperation in the EU.

Since the establishment of first the Coal and Steel Community and later the EC and EU, the Member States have adapted the treaties over the years. The reasons for changing the treaties have been both to adapt the EU to a greater number of members and to extend cooperation to new areas where it is advantageous for the EU Member States to have a common policy.

The Lisbon Treaty was adopted by the EU Member States in 2009 after nearly a decade of negotiations. The new treaty is to ensure that European countries can respond to the challenges of the 21st century and succeed in global competition.

The Lisbon Treaty has resulted in a number of changes and innovations regarding how the EU functions:

The EU has become more democratic: The influence of the Members of the European Parliament has increased and is now equivalent to the national governments of the Council. Additionally, national parliaments have obtained better methods to monitor the work of the EU.

The EU has become more efficient: It has become easier and swifter for the EU to make decisions because procedures and voting rules have been streamlined and made more efficient. Moreover, the European Council, where Heads of State and Government meet, now has a permanent president, which ensures more continuity in the work of the Council. The Belgian Herman Van Rompuy is elected the first president of the European Council.

The EU can better tackle global challenges: The EU's foreign policy has been strengthened, making it easier to promote European interests in the world. The enhancement has mainly been achieved through the creation of a common foreign service and a "High Representative", who can speak and act on behalf of the EU. British Catherine Ashton is the first appointed High Representative of the EU.