European Economic Community Essay Example | Topics and Well Written Essays - 2750 words

European Economic Community - Essay Example Three treaty organizations were considered for the creation of the European Communities known under EC since 1992. The European Economic Community, being the processor of the EC, was a treaty between Belgium, France, Luxemburg, the Netherlands and West Germany. It aimed for the economic inclination of the participating counties which would eventually lead to common political goals and institutions. Today the organization numbers 25 members which all fall under the European Union organization. These are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, Kingdom of Great Britain and Northern Ireland1. The aim of this paper is to investigate to what extend the European Union has penetrated the economy of each party and to what extend it represents a new legal order meaning the effect the of the common regulations and policies followed on the participant countries. What's more, the prevalence of Community Laws over local Laws is examines and for this matter the Dutch transport firm Van Gend & Loos case is discussed as an example case. All former are sustained through comparison within the EC member countries and comparison to development rates universally. Since European Community is a pillar of the European Union focusing on environmental, social and primarily economical matters, the two terms are used interchangeably for the rest of this paper. Common Policy Issues The first issue to discuss here are the emerging problems of the common momentary policy implemented four year ago by twelve of the fifteen members and how these were tackled by the Community authorities. To start with and moving away from the prevalence issues per se, attaining the deficit goals is not an easy task and there is not much confidence for all countries. Strong economies are expected to perform better than smaller economies that might not achieve the set standards and conflicts within the union boundaries are common to occur. Secondly, the bilateral conversion rates are put into question as to how much these reflect the currency prior to conversion. Thirdly, the core or strong economy countries will be a lot more lucrative in risk taking; in fact they will be a lot more conservative. Interest rate level however on the fast growing countries however will be a lot higher and countries such as Ireland, Portugal, Greece and Spain. The former might encounter great issues when managing their economies (Krijsman, 1998). The entire former sum up to a list of problems the Community had to tackle even before embracing the common monetary policy. Of course the authority of the Community enforced the members to follow the guidelines imposed to them; these however were based on the actual facts and the potential of each member. In any case, the members followed, or are still trying to in case they have not achieved, the set standards imposed by the EC. The EC Facts The European Union focuses on economic and environmental policies on subjects as agriculture, trade, humanitarian aid and taxation policies. The unique property of common economic policy met within the European Union boundaries holds an extra property; all participating countries will fail or succeed. This is the main concern of countries that refuse to join the European Union as Switzerland and Norway that refuse to jo