The first proposals of the European integration have been made at the Paris Conference in 1867. However, the practical realization of the idea of integration was not accomplished: the contradictions between the two countries were so deep that the awareness of the need to cooperate in the union went through two world wars and several local wars. Integration trends in Europe re-emerged immediately after the Second World War, when major European countries have realized that the restoration and development of national economies is the only possible way combining efforts and resources.
Plan for the creation of the European Community of Coal and Steel, promulgated in May 1950, was the first step towards the European integration. It presupposed the establishment of international control over the key sectors of the military industry through signing the contract necessary for its participants. April 18, 1951 Belgium, Italy, Luxembourg, the Netherlands, Germany and France signed the Treaty of Paris which established the European Community of Coal and Steel, the beginning of practical activities August 10, 1952 (Wilde). The main purpose of the European Community of Coal and Steel was to prevent the post-war crisis in the key sectors of the economy at that time, in particular, by the elimination of various barriers to trade and the creation of a common market that presupposes freedom of movement of the goods corresponding to capital and labor. The establishment of European Community of Coal and Steel also contained the positions about investment governing and competition rules. This association successfully operated for 50 years. The decision to terminate the activity of the European Community of Coal and Steel completely fulfilled its purpose and the transition to a qualitatively new level of integration was adopted by the European Union authorities in July 2002.
The formation of the single market was recorded as one of the most important goals of European Economic Union in 1957. But the progress in this area was insignificant for a long time. The situation changed only with the entry of the Single European Act into force on 1 July 1987 which established a period of transition to the single market with free movement of services, goods, capital and people within the Community. The Single European Act made significant changes to the decision-making process. First of all, it provided the impact that most decisions had to be unanimous. This situation hindered the integration process: one or the other national representative took a protectionist stance and voted against another legal act which had a key to integration deepening. The Single European Act made it possible to take a decision by a majority of votes on all issues and events pertaining to the creation of a single market (except the spheres of taxation and free movement of people). Another important element of the Single European Act consisted in the introduction of the principle of subsidiarity, or complementarity (Dinan). Its essence lied in the fact that no decision should be taken at a high level, if this could be successfully managed at a lower level. In accordance with this principle, the European Union’s role was strengthened in those areas where the collective decision-making was required. The jurisdiction of individual countries presupposed control functions that could be implemented at the national and regional levels. Legal acts and regulations aimed at accelerating progress towards the single market and were taken in areas such as company law, harmonization of standards, taxation and transport legislation, as well as the mutual recognition of higher education diplomas. Harmonization of standards for the production of various products, including the rules of ecological purity of food products, as well as the safety precautions in the production in order to protect the rights of workers and consumers became a necessary measure that could prevent distortion of competition in the goods markets, services and capital in the conditions of liberalization.
Creation of the European Monetary Union is the most significant event not only in Europe, but also in the global economy as a whole. But the sharp fluctuation of euro in comparison to the other major currencies showed a lack of elaboration of the project and confirmed the idea that the European Union space is not an optimal currency area (Wilkinson). To cancel the national currency and introduce a single currency from a technical and administrative point of view appeared much easier to do than get it through concrete economic results. Significant differences remain between individual parts of the total Western European market which has increased after the accession of new countries. The basis for the euro zone joining decision is the fulfillment of the criteria of the Maastricht Treaty and Monetary Union.
First of all, the average annual inflation rate should not exceed 1.5% of the average inflation rate of three euro zone countries with the lowest rate. The budget deficit should not exceed 3% at market prices. The national debt should not exceed 60%, or show a clear tendency to reduce it. The implementation of these criteria should be systematic and cannot be attributed to one-off measures for a favorable economic situation which implies only a temporary compliance. In addition, there is another criterion of Maastricht consisting in the participation in the mechanism of currency fluctuation co-regulation.
Retrospective objective analysis of the European Union development makes it possible to talk about the strengths of the development of the countries-members of the European Union which include political stability, business openness, highly developed infrastructure, availability and reliability of communications, freedom of banking competition, ease of development of new technologies, the high educational level of the workforce and management staff, ease business organization and breadth of cooperation between enterprises and universities.
Works Cited:
Dinan, Desmond. Ever Closer Union. An Introduction to European Integration. Chicago: Palgrave Macmillan, 2010. Print.
Wilde, Robert. The History of the European Union. Chicago: Michigan Avenue, 2016. Web. 04 Sep. 2016.
Wilkinson, Michael. What Is the EU, Why Was It Created and When Was It Formed? London: The Telegraph, 2016. Web. 04 Sep. 2016.
