1	History of The European Union
2	Europe During World War II World War II (1939-1945) devastated the economy of Europe. Some Europeans hoped that the reconstruction of Western Europe would result in an agreement to create a unified European state. Idea of a unified Europe was undermined by the beginning of the Cold War and lingering suspicions of West Germany.
3	EU Beginings Two Frenchmen — Jean Monnet, a civil servant, and Robert Schuman, a foreign minister — believed that France and Germany might put aside their long-running antagonism if given economic incentives for cooperation. In May 1950 Schuman proposed the creation of a common authority to regulate the coal and steel industry in West Germany and France; membership was also open to other Western European countries. The proposal was welcomed by the West German government and by the governments of Belgium, Italy, Luxembourg, and the Netherlands. Along with France, the five countries signed the Treaty of Paris in 1951, and the European Coal and Steel Community (ECSC) was established in August 1952. The British government decided not to join.
4	Creation of EEC In June 1955 the foreign ministers of the six nations in the European Coal and Steel Community (ECSC) agreed to examine the possibilities for further economic integration. This new effort resulted in the two Treaties of Rome of March 1957, which created the European Economic Community (EEC) European Atomic Energy Community (Euratom)
5	Inauguration of the European Economic Community The EEC treaty included The elimination of trade barriers among member nations. The development of a common tariff for imports. The creation of a common policy for agriculture. In 1961, with the EEC’s apparent economic success, Great Britain began negotiations toward membership. In January 1963, however, French President Charles de Gaulle vetoed British membership, because of Britain’s close ties to the United States.
6	Creation of the European Community The three communities (the EEC, the ECSC, and Euratom) merged in July 1967 under one set of institutions, the European Community (EC). No progress was made on enlargement of the EC until after De Gaulle resigned as President of France in May 1969. The next French president, Georges Pompidou, was more open to new members within the EC.
7	Expansion of the EC In January 1972, treaties were signed to admit Great Britain, Ireland, Denmark, and Norway. Great Britain, Ireland, and Denmark joined as scheduled in January of 1973; however, in a national referendum, Norway voted against membership. Greece entered the EC in 1981 and, after eight years of negotiations, Spain and Portugal joined in 1986.
8	British Traumas In Great Britain, opposition to EC membership continued. When the Labour party regained power in 1974, it carried out its election promise to renegotiate British membership conditions; the renegotiation resulted in only marginal changes, but it created a period of uncertainty within the EC. A divided Labour government endorsed continued EC membership and called a national referendum on the issue for June 1975. Despite strong opposition from some groups, the British people voted for continued membership.
9	European Monetary System In March 1979 the European Monetary System (EMS) was established to help establish an economic and monetary union. Initial plans to reach complete EMU by 1980 were overly optimistic; currencies of member states fluctuated against each other, and the devaluation of some currencies limited economic growth and led to high inflation. A common European Currency Unit (ECU) was introduced by which the central exchange rates could be set and weighted according to the economic importance of each country. The EMS helped lower inflation rates in the EC and eased the economic shock of global currency fluctuations during the 1980s.
10	Values of the Euro to the National Currency
11	Toward a Single Market The campaign for the single market was led by Jacques Delors, a former French finance minister who was President of the European Commission from 1985 to 1995. The summit meeting in Milan, Italy, is when the European Council set the goal of achieving a single European market by December 31, 1993, accelerated reforms with the EC and increased cooperation and integration among member states. Ultimately, it led to the formation of the European Union.
12	Changes in Europe and the EC As Communism crumbled in Eastern Europe, many of the former Communist countries looked to the EC for political and economic assistance. The EC agreed to military aid and association agreements with many of the countries, but ruled out immediate membership.
13	The Question of East Germany At this same summit, West Germany and France proposed an intergovernmental conference (IGC) to pursue closer European unity in the wake of the rapid political upheaval. An emergency summit in April 1990 made an exception to allow for East Germany to be automatically incorporated into the EC upon completion of German reunification.
14	Treaty on European Union Representatives from each of the EC countries negotiated the Maastrich Treaty on European Union in 1991, in Maastrich, the Netherlands. A provision of the treaty mandated that the voters of each member state had to approve the European Union by popular referendum. The treaty was ratified in October 1993. The European Union was established on November 1, when the treaty went into effect.
15	Monetary Unity The EU’s attempts to establish a single European currency, called the Euro, was loaded with controversy. For instance, some EU countries, including Great Britain, worried that a shared European currency would threaten their national identity and governmental authority.
16	Meeting the Requirements Despite Britain’s concerns, many of the EU’s member countries struggled to meet the economic requirements for participating in a shared currency. To meet these requirements—which include a budget deficit of no more than three percent of gross domestic product (GDP)—by the deadline of late 1997, a number of countries imposed budget cuts and new taxes.
17	New Members By 1997 more than a dozen countries had applied for EU membership, but the EU had admitted only three—Austria, Finland and Sweden. Austria applied for membership in 1989 Sweden in 1991 Finland in 1992. The EU admitted all three in June 1994. The EU also offered membership to Norway at that time, but the people of Norway voted not to enter the EU. One reason Norway rejected membership was because of the strength of its own economy.
18	The Future of the EU By 1997 other countries seeking EU membership included Turkey, which applied in 1987 Cyprus (1990) Malta (1990) Switzerland (1992) Hungary (1994) Poland (1994) Romania (1995) Slovakia (1995) Latvia (1995) Estonia (1995) Lithuania (1995) Bulgaria (1995) Czech Republic (1996)
19	One Day the Whole of Europe Six countries are considered associate members of the EU: Bulgaria, Czech Republic, Hungary, Poland, Romania, and Slovakia. Three other countries—Estonia, Latvia, and Lithuania—are being considered for associate membership. In 1991 the EC completed an agreement to establish the European Economic Area, which would provide a single market for goods, services, and capital.
20	The 15 Members of the European Union in 2003
21	The European Union from 2004 to 2007