The history of the EU

From peace project to common market

The history of the EU begins shortly after the Second World War. To secure peace in Europe, six countries start to cooperate with each other in the production of coal and steel. More than 60 years later, the EU has 27 member states. They have created a common market for goods and services where EU citizens can move freely between countries to work and study.

Common market for coal and steel

In 1952, the first building block is laid, which is to become the EU of today. Belgium, France, Italy, Luxembourg, the Netherlands and West Germany create a common market for coal and steel: the European Coal and Steel Community. Production of coal and steel is supervised by a supranational authority and one of the objectives is to prevent an arms race between the countries that have recently experienced the Second World War.

Agriculture and trade in the EEC

At the end of the 1950s, the cooperation between the six countries develops into what comes to be known as the European Economic Communities (EEC). The fundamental rules for cooperation are contained in two treaties, the Treaty establishing the European Economic Community (EEC Treaty) and the Treaty establishing the European Atomic Energy Community (Euratom Treaty), which come into force in 1958. The EEC Treaty later comes to be known as the Treaty on the Functioning of the European Union (TFEU). Cooperation now includes agricultural policy, trade policy and the peaceful use of nuclear power. The EEC also sees the start of discussions on the objectives of trade policy, a common internal market with free cross-border movement of goods, services, people and capital.

The EC and elections to the European Parliament

In 1967, the EEC becomes known as the European Communities (EC) and this is when the rules governing how the countries should cooperate in practical terms are changed. During a number of decades from now on, the EC carries out major changes. The EC is enlarged with the accession of several new countries. The member states also begin cooperating in increasingly more matters, for example foreign and security policy and judicial cooperation. In 1979, EU citizens are for the first time allowed to elect the members of the European Parliament (MEPs) in direct elections in the member states. Previously, it was the national parliaments in the member states that appointed their MEPs.

The internal market becomes a reality

In 1993, it is time once again for a name change. The EC starts to be known as the European Union (EU) and the rules for the European Union are contained in another treaty, known as the Treaty on European Union. The activities that were included in the EC remain, but now as part of the EU. At the same time, the internal market for goods, services, people and capital becomes a reality. The EU member states have reached agreement on 200 new laws to ensure that the internal market can become a reality.

The EU's policy areas

Enlargement, monetary union and the first country to withdraw

From the mid-1990s until 2013, the EU continues to expand with further enlargements, from 12 member states to at most 28. The rules governing how the EU should function are updated on several occasions and more areas are added to the list of areas in which the member states cooperate, for example, economic policy. In 1999, the EU introduces the Economic and Monetary Union (EMU) with the common currency – the euro. By means of the EMU, member states are to coordinate their economic policy. The euro is first introduced as an electronic currency, and during 2002, euro banknotes and coins are introduced. Today, 19 of the member states have introduced the euro as their currency. Sweden has not introduced the euro. In 2020, the UK became the first independent country to leave the EU. The number of member states thus became 27.

New role for the parliaments of the EU member states

In 2009, the EC ceases to exist. This means that the activities which were previously part of the EC are instead covered by the EU. At the same time, the national parliaments in the EU are given greater influence on EU policy. By means of an amendment to the EU treaties, the national parliaments are given a new role: to examine whether EU legislative proposals should be decided by the EU or by the member states themselves. The idea is that decisions on new legislation should be made at the most effective political level, as close to the citizens as possible. Formally speaking, the EU’s decisions must respect the principle of subsidiarity.