Milestones of EU
Initiators of European integration processes
Jean Monnet (1888-1979) Political and economic adviser to France. Jean Monnet dedicated his life
to the idea of European integration. He was the inspirer of the so-called Schuman Plan, which sought
to unite the heavy industries of Western Europe. Jean Omer Marie Gabriel Monnet was a French
entrepreneur, diplomat, financier, administrator, and political visionary. An influential supporter of
European unity, he is considered one of the founding fathers of the European Union.
Robert Schuman (1986-1963). In collaboration with Jean Monnet, he developed the world-famous
Schuman Plan. It was published in 1950. May 9 This date is considered the birthday of the European
Union today and is celebrated every year as Europe Day. In his speech on the occasion, Schuman
proposed the introduction of joint controls on the production of coal and steel, the most important
materials in the armaments industry. The main idea was that those who could not control coal and
steel production would not be able to fight. He was Minister of Finance in 1946 andPrime Minister
from 1947 to 1948. He assured parliamentary stability during a period of revolutionary strikes and
attempted insurrection. In the last days of his first administration, his government proposed plans that
later resulted in the Council of Eyrope and the European Single market.
1957 - Treaty of Rome establishing European Economic Community (EEC) and separate treaty
creating European Atomic Energy Community (Eurotom)
1967 - ECSC, EEC and Eurotom merge to form European Community (EC)
1973 – Britain, Ireland and Denmark join EC
1979 – European Monetary System launched. All become full members except Britain.
1981 – Greece join EC
1985 – EC leaders sign Single European Act to create a true single market by end of 1992
1986-Spain and Portugal join EC
1990- German unification
1991 – Maastricht Treaty creates EU, agrees joint foreign and justice policies, and introduction of a
single currency
1992- European Economic Area Treaty extends single market to include six non-EU countries
(Austria, Finland, Iceland, Norway, Liechtenstein, Switzerland)
1995- Sweden, Austria and Finland join EU
1998- EP votes on a report on which countries should start euro and approve European
1999 – irrevocable fixing of member country currencies as part of new euro currency (for 11
countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands,
Portugal and Spain ECB set to take over operation of euro monetary policy
1999 -The Amsterdam Treaty enters into force, reforming the EU's institutions in preparation for
new members.
2001 – Greece join Euro zone
2002 – ECB issues Euro banknotes and coins. Domestic currencies of EMU member countries lose
their legal status.
2003 - The Treaty of Nice enters into force, reforming the EU institutions so that they can function
effectively with the enlargement of the EU to 25 (change in the composition of the Commission,
redefined voting system in the Council).
2004- EU enlargement Cyprus, Czechia, Estonia, Hungary, Latvia, Lithuania, Malta, Poland,
Slovakia, Slovenia join EU .
2007- Bulgaria, Romania join EU. Slovenia imtroduce euro.
2008 - Cyprus and Malta intoduce euro.
2009 – Slovakia introduce euro
2009 - The Lisbon Treaty enters into force, aiming for a more democratic, efficient EU that can better
address global challenges such as climate change with a united front. The European Parliament is
given more power, the voting procedure in the Council is changed, the citizens' initiative is legalized
(at least 1 million signatures), the permanent President of the European Council is legalized, the new
High Representative is new, the EU diplomatic service is clear. which remain at the disposal of the
EU Member States.
2011 – Estonia introduce euro
2013 – Croatia join EU
2014 – Latvia introduce euro
2015 – Lithuania introduce euro
2016 – United Kingdom votes to leave EU.
2020 - United Kingdom leaves EU.
Candidate countries to join EU:
Albania, Montenegro, Serbia, The Former Yugoslav Republic of Macedonia,
Potential candidate countries:
Bosnia and Hercogovina, Kosovo
Single European market (SEM)
Rome Treaty required to remove of tariffs among member states and to establish a common
commercial policy towards the rest of the world. Together dismantling of non-tariff barriers was
started to create a free movement of goods, services, labour and capital. But achievements until
1980s was quite weak.
In 1986 Single European Act (SEA) was intended to achieve non-tariff barriers to and the free
movement of capital and labour.
There are:
Physical barriers. Created by customs formalities and controls. They can be removed when
eliminating internal frontiers and controls on people and capital, goods and services and developing
of a common transport policy.
Technical barriers. Such as different technical specifications of products. It has to be harmonized
regulations or to have mutual recognition of each other’s standards, to remove exchange controls,
and to establish the equivalence of qualifications.
Fiscal barriers. To remove these barriers is required to harmonize of taxation rates and systems,
especially in the field of indirect and corporate taxes.
Movement to the SEM produce gains:
1. Direct gains (or static gains)
Increase in Trade creation and Trade diversification- Trade creation is a replacement
of high-cost domestic output of one member state by the lower-cost output of another member state.
Trade diversification is a diversification of output from low - cost outside sources of supply to a
higher-cost source within the integrated area.
2. Indirect gains (or dynamic gains):
Increases economies of scale, increased competition resulting in reduction of Xinefficiency (average costs are higher than they would be with competition ) and international price
discrimination, and an increase in the variety of products.
3. Efficiency gains. Gains from increase in investments happening because of static
and dynamic gains.
Analysis can be performed from microeconomics and macroeconomics perspective.