The Treaty establishing a single Council of Ministers and a single Commission of the European Communities was signed in Brussels on April 8, 1965 between the original member countries of the three Communities: the European Coal and Steel Community (ECSC), the European Economic Community (EEC), and the European Atomic Energy Community (EURATOM). The Treaty entered into force on July 1, 1967 and became operative on July 6, 1967, replacing the three former Councils and Commissions (the latter called High Authority in the ECSC). The single executive continues, however, to administer the three Communities according to each of their treaties.

The three Communities are legally separate, having been established by separate treaties, but they share central common institutions: the Commission, which formulates and implements policy; the Council of Ministers, the consent of which the Commission must seek before it can implement policy; the European Parliament, which advises and supervises the work of the executive organs; and the Court of Justice, which rules on the interpretation and application of treaties.

The European Economic Community (re-named European Community in the Treaty on European Union) was established on January 1, 1958, when the Treaty of Rome came into force. Its aim was to integrate, over a 12-year transition period, the members' economic resources, other than coal and steel, into an economic union within which goods, labor, services, and capital will move freely. Common policies for foreign trade, agriculture, and transport will also be implemented. The customs union between the original Six members became effective July 1, 1968. Customs duties between the Six and Denmark, Ireland, and the United Kingdom, which became members on January 1, 1973, were abolished on July 1, 1977. Greece became a member of the EEC on January 1, 1981, with a 5-year transitional arrangement. Spain and Portugal became members of the EEC on January l, 1986. Austria, Finland, and Sweden joined on January 1, 1995.

The European Coal and Steel Community was established in accordance with the Treaty of Paris, which was signed on April 18, 1951. Its purpose was to set up a common market for the member countries' resources of coal, steel, iron ore, and scrap. It began operations on July 25, 1952.

The European Atomic Energy Community was established on January 1, 1958, the same date as the EEC. Its role is to create "the conditions necessary for the speedy establishment and growth of nuclear industries in the Community"; it also has various responsibilities of a regulatory character.

On December 5, 1978 the European Council, composed of Heads of State and Government of the countries of the European Community, adopted a Resolution regarding the establishment of a European Monetary System (EMS). The EMS entered into force on March 13, 1979. The aim of the EMS was the creation of closer monetary cooperation leading to a zone of monetary stability in Europe. The European Currency Unit (ECU) wass the centerpiece of the EMS. The ECU served as the numeraire for the exchange rate mechanism, the basis for the divergence indicator, the denominator for operations in both the intervention and the credit mechanism, and a means of settlement between monetary authorities of the EEC. The Treaty on European Union provides for a common currency no later than 1999.

The single market has opened up new prospects for European integration, including that of Economic and Monetary Union (EMU). The EMU was a three-step process. On July 1, 1990, the European Community entered Stage One, which aimed to improve economic and monetary policy convergence among member states. It also saw the removal of exchange controls in most member states. The Maastricht Treaty provided the legal basis for Stage Two, which began on January 1, 1994, and involved the creation of the European Monetary Institute (EMI). This was intended to pave the way for a European System of Central Banks at the beginning of Stage Three, which began on January 1, 1999 with the introduction of the euro as the single currency and a single monetary policy for the 11 member countries participating in the euro area, namely: Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland. (Further information on this matter may be found under the European Central Bank, an organization listed separately in this Directory.)

COMPOSITION

15 member states: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, United Kingdom. The European Union is now preparing to welcome a further ten countries in eastern and southern Europe: Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia. These countries are set to join the EU in 2004. Bulgaria and Romania expect to follow a few years later and Turkey is also a candidate country.

The European Communities have paid particular attention to developing appropriate relationships with third countries. Accordingly, relations covering trade and economic cooperation have been set up with many developing countries. Notably the Lomé Convention with the African, Caribbean, and Pacific (ACP) group of countries was signed for the first time in Lomé, Togo in 1975 and renewed, after fresh negotiations, in 1979, 1984 and 1989. It offers overall and flexible cooperation, using the full range of aid and trade development instruments and a permanent dialogue through three joint institutions: the ACP-EEC Council of Ministers, the ACP-EEC Committee of Ambassadors, and the ACP-EEC Joint Assembly.

The European Development Fund (EDF) provides grants and risk capital, and the European Investment Bank (EIB) provides loans for national and regional development programs. Also included in the EDF are five specific funds: (a) Stabex - for cash transfers to offset serious losses on agricultural exports; (b) Sysmin - for mining industries in difficulty; (c) emergency aid for disaster relief; (d) refugee aid for serious refugee situations; and (e) structural adjustments aid for countries undergoing economic reforms.

The main trade arrangements are: (a) duty and quota-free access to the EEC market for almost all ACP exports; (b) guaranteed purchase by the EEC of up to 1.3 million tons of ACP sugar at EEC prices; and (c) funds for trade promotion and development.

The 70 States that have signed the Convention are: Angola, Antigua and Barbuda, The Bahamas, Barbados, Belize, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Democratic Republic of the Congo, Republic of the Congo, Côte d'Ivoire, Djibouti, Dominica, Dominican Republic, Equatorial Guinea, Eritrea, Ethiopia, Fiji, Gabon, The Gambia, Ghana, Grenada, Guinea, Guinea-Bissau, Guyana, Haiti, Jamaica, Kenya, Kiribati, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Papua New Guinea, Rwanda, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Samoa, São Tomé and Príncipe, Senegal, Seychelles, Sierra Leone, Solomon Islands, Somalia, Sudan, Suriname, Swaziland, Tanzania, Togo, Tonga, Trinidad and Tobago, Tuvalu, Uganda, Vanuatu, Zambia, and Zimbabwe.

Comprehensive agreements covering both trade and financial and technical cooperation have been concluded between the European Community and Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Syrian Arab Republic, and Tunisia. Economic cooperation agreements have been concluded with the Andean Pact, Brazil, India, and the ASEAN countries. Other trade agreements have been concluded with many other countries.

STRUCTURE

The institutions of the European Union were created to give expression to an ever closer Union of European nations.

The European Parliament is the directly-elected democratic expression of the political will of the peoples of the European Union, the largest multinational Parliament in the world. It represents the 374 million citizens of the Union and has three essential functions: it shares budgetary authority and the power to legislate with the Council and it exercises democratic supervision over the Commission. (Website: www.europarl.eu.int)

The Council of the European Union is usually known as the Council of Ministers, and has no equivalent anywhere in the world. It has a number of key responsibilities: It is the Union's legislative body; it coordinates the economic policies of the Member States; it concludes international agreements with one or more States or international organizations; it shares budgetary authority with Parliament; it takes decisions necessary for framing and implementing the common foreign and security policy; it coordinates the the activities of Members States and adopts measures in the field of police and judicial cooperation in criminal matters. (Website: ue.eu.int)

The European Commission (CEC) embodies and upholds the general interest of the Union. After approval by the European Parliament, Member States appoint the President and Members of the Commission. It is the driving force in the Union's institutional system, with the following responsibilities: it has the right to draft legislation and present legislative proposals to Parliament and the Council; it implements the European legislation (directives, regulations, decisions), budget and programmes adopted by Parliament and the Council; it acts as guardian of the Treaties and, with the Court of Justice, ensures that Community law is properly applied; it represents the Union internationally, and negotiates international agreements, chiefly in the field of trade and cooperation. (Website: europa.eu.int/comm)

The Court of Justice ensures that Community law is uniformly interpreted and effectively applied. It has the jurisdiction in disputes involving Member States, EU institutions, businesses and individuals. A Court of First Instance has been attached to it since 1989. (Website: curia.eu.int)

The Court of Auditors checks that all the Union's revenue has been received and all its expenditure incurred in a lawful and regular manner and that financial management of the EU budget has been sound. (Website: www.eca.eu.int)

The European Central Bank (also listed in this Directory as a separate organization) frames and implements European monetary policy; it conducts foreign exchange operations and ensures the smooth operation of payment systems. (Website: www.ecb.int)

The Economic and Social Committee represents the views and interests of organized civil society vis-à vis the Commision, the Council and the European Parliament. (Website: www.ces.eu.int)

The Committee of the Regions ensures that regional and local identities and prerogatives are respected. (Website: www.cor.eu.int)

The European Investment Bank (also listed in this Directory as a separate organization) is the Union’s financing institution. (Website: eib.eu.int or www.eib.org)

The European Ombudsman is empowered to act as a conciliator between citizens and the Community administration. (Website: www.euro-ombudsman.eu.int)

GENERAL PUBLICATIONS