From its beginnings, half a century ago, in the immediate aftitleath of the Second World War,
through the expansion of the seventies and eighties and the great debate surrounding the Maastricht Treaty,
here we highlight some of the key events which have shaped the development of the European Union towards
closer integration and the introduction of the single currency.
| 1948 |
The Organisation for European Economic Cooperation (OEEC) is set up in Paris in April
1948, co-ordinating the distribution of the Marshall Plan financial aid which will amount to $12.5
billion from 1948 to 1951. The OEEC consists of one representative from each of the 17 Western European
countries which join the organisation. In May 1948 in The Hague, the Congress of Europe (a meeting of
delegates from 16 European countries) agree to form the Council of Europe with the aim
of establishing closer economic and social ties
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| 1951 |
The European Coal and Steel Community (ECSC) is established by the signing of the
Treaty of Paris in April 1951. Along with France and West Germany, Italy, Belgium, Luxembourg and The
Netherlands have also chosen to join the organisation. Members of the ECSC pledge to remove all import
duties and quota restrictions on the trade of coal, iron ore, and steel between the member states
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| 1952 |
The European Defence Community (EDC) Treaty is signed by France, West Germany, Italy,
Belgium, Holland and Luxembourg in May 1952. It includes the provision for the formation of a parallel
European Political Community (EPC). However both initiatives are destined to founder
since the French National Assembly never ratifies the EDC Treaty, finally rejecting it in August 1954
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| 1955 |
The process of further European integration is given fresh impetus by a conference of ECSC foreign
ministers at Messina, Italy, in June 1955. The meeting agrees to develop the community by encouraging
free trade between member states through the removal of tariffs and quotas. Agreement is also reached
to form an Atomic Energy Community to encourage co-operation in the nuclear energy industry
|
| 1958 |
The two Treaties of Rome are signed, establishing the European Economic Community (EEC)
and the European Atomic Energy Community (Euratom). As well as stipulating the
eventual removal of customs duties on trade between member countries (over a period of 12 years) the
EEC Treaty sets out allow the free movement of workers, capital and services across borders and to
harmonise policies on agriculture and transport
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| 1960 |
At the Stockholm Convention in January 1960 Austria, Britain, Denmark, Norway, Portugal, Sweden and
Switzerland form the European Free Trade Association (EFTA). The objective of EFTA is
to promote free trade but without the formal structures of the EEC
|
| 1972 |
In October, following the recommendations of the Werner Report, the EEC launches its first attempt at
harmonising exchange rates. The mechanism adopted is the so called 'snake in the tunnel' whereby
participating governments are required to confine the fluctuations of their currencies within a range
of +/- 1% against each other. The value of the group of currencies (the snake) is also to be maintained
within a range of +/-2.25% against the US Dollar (the tunnel). Countries requiring assistance to keep
their currencies within the required band may receive help only in the form of loans
|
| 1978 |
At a summit in Bremen in July, the French and West German governments announce their intention to
create the European Monetary System (EMS). At the centre of the EMS is the
European Currency Unit (ECU). The value of the ECU is to be derived from a weighted
basket of all participating currencies with the greatest weighting against the West German mark
|
| 1986 |
In October, following the recommendations of the Werner Report, the EEC launches its first attempt at
harmonising exchange rates. The mechanism adopted is the so called 'snake in the tunnel' whereby
participating governments are required to confine the fluctuations of their currencies within a range
of +/- 1% against each other. The value of the group of currencies (the snake) is also to be maintained
within a range of +/-2.25% against the US Dollar (the tunnel). Countries requiring assistance to keep
their currencies within the required band may receive help only in the form of loans
|
| 1992 |
On 7th February, at a summit of the European Council in Maastricht, Holland, the Treaty on
European Union (TEU), also known as the Maastricht Treaty, is signed. Originally intended
to include a declaration of an intention to move towards federal union, at Britain's insistence this
aspect is played down. Subsequent to the signing of the Maastricht Treaty, the European Community is
referred to as the European Union (EU)
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| 1994 |
Stage 2 of EMU is initiated on January 1st with the establishment of the European Monetary
Institute (EMI) to oversee the co-ordination of the monetary policies of the individual
national central banks. The EMI will also work towards the introduction of stage 3 by organising the
creation of the European Central Bank
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| 1995 |
In December the European Council settles on "euro" as name for the single currency
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| 1998 |
At the beginning of May, at a summit of EU officials and heads of state in Brussels, the announcement
is made as to which countries will participate in the launch of the euro the following January. In
June the European Central Bank (ECB) is established in Frankfurt, Germany. The ECB
together with the national central banks of the 15 EU member states form the European System
of Central Banks (ESCB) which will be responsible for setting monetary policy for the euro
countries and managing those countries' foreign reserves
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