Association of European countries designed to promote European economic unity. It was established by the Treaty of Rome in 1957 to develop the economies of the member states into a single common market and to build a political union of the states of western Europe. The EEC also sought to establish a single commercial policy toward nonmember countries, to coordinate transportation systems, agricultural policies, and general economic policies, to remove measures restricting free competition, and to assure the mobility of labour, capital, and entrepreneurship among member states. The liberalized trade policies it sponsored from the 1950s were highly successful in increasing trade and economic prosperity in western Europe. In 1967 its governing bodies were merged into the European Community. In 1993 the EEC was renamed the European Community (EC); it is now the principal organization within the European Union.
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The Treaty of Amsterdam transferred responsibility for free movement of persons (e.g. visas, illegal immigration, asylum) from the Justice and Home Affairs (JHA) pillar to the European Community (JHA was renamed Police and Judicial Co-operation in Criminal Matters (PJCC) as a result). Both Amsterdam and the Treaty of Nice also extended codecision procedure to nearly all policy areas, giving Parliament equal power to the Council in the Community.
In 2002, the Treaty of Paris which established the European Coal and Steel Community (one of the three communities which comprised the European Communities) expired, having reached its 50 year limit (as the first treaty, it was the only one with a limit). It was seen as redundant so no attempt was made to replace it, instead the Treaty of Nice transferred its elements to the Treaty of Rome and hence its work continued as part of the EEC area of the Community's remit.
The EEC institutions became the institutions of the EU but the roles of the institutions between the pillars are different. The Commission, Parliament and Court of Justice are largely cut out of activities in the second and third pillars, with the Council dominating proceedings. This is reflected in the names of the institutions, the Council is formally the "Council of the European Union" while the Commission is formally the "Commission of the European Communities". This allowed the new areas to be based on intergovernmentalism (unanimous agreement between governments) rather than majority voting and independent institutions.
However, since Maastricht, Parliament has gained a much bigger role. Maastricht brought in the codecision procedure, which gives it equal legislative power with the Council on Community matters. Hence, with the greater powers of the supranational institutions and the operation of Qualified Majority Voting in the Council, the Community pillar can be described as a far more federal method of decision making. Indeed, in the draft European Constitution, this was to be called federalism but the wording was changed to "community method" due to the political overtones of the word 'federal' in the United Kingdom.
The Euratom treaty, unlike that of the ECSC, did not expire and despite proposals to merge that fully into the Union, it will continue to exist as a sole independent entity within the Union.