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European Coal and Steel Community

The European Coal and Steel Community (ECSC) was a European organization created after World War II to integrate Europe's coal and steel industries into a single common market based on the principle of supranationalism which would be governed by the creation of a High Authority which would be made up of appointed representatives from the member states who would not represent their national interest, but would take and make decisions in the general interests of the Community as a whole. It was formally established in 1951 by the Treaty of Paris, signed by Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany and was generally seen as the first step in the process of European integration following the end of the Second World War in Europe. The organization's subsequent enlargement of both members and duties ultimately led to the creation of the European Union.

The ECSC was first proposed via the Schuman Declaration by French foreign minister Robert Schuman on 9 May 1950 (commemorated in the EU as Europe Day), the day after the fifth anniversary of the end of World War II, to prevent another war between France and Germany. He declared "the solidarity in production" from pooling "coal and steel production" would make war between the two "not only unthinkable but materially impossible". The Treaty created a common market among member states that stipulated free movement of goods (without customs duties or taxes) and prohibited states from introducing unfair competitive or discriminatory practices.

Its terms were enforced by four institutions: a High Authority composed of independent appointees, a Common Assembly composed of national parliamentarians, a Special Council composed of national ministers, and a Court of Justice. These would ultimately form the blueprint for today's European Commission, European Parliament, the Council of the European Union, and the Court of Justice of the European Union, respectively.

The ECSC set an example for the pan-European organizations created by the Treaty of Rome in 1957: the European Economic Community and European Atomic Energy Community, with whom it shared its membership and some institutions. The 1967 Merger (Brussels) Treaty merged the ECSC's institutions into the European Economic Community, but the former retained its own independent legal personality until the Treaty of Paris expired in 2002, leaving its activities fully absorbed by the European Community under the frameworks of the Treaties of Amsterdam and Nice.

History
As Prime Minister and Foreign Minister, Schuman was instrumental in turning French policy away from the Gaullist objective of permanent occupation or control of parts of German territory such as the Ruhr or the Saar. Despite stiff ultra-nationalist, Gaullist and communist opposition, the French Assembly voted a number of resolutions in favour of his new policy of integrating Germany into a community. The International Authority for the Ruhr changed in consequence.

Schuman declaration
The Schuman Declaration had the stated aim of preventing further antagonism between France and Germany and among other European states by tackling the root cause of war through the establishment of common foundations for economic development. Schuman proposed the formation of the ECSC primarily with France and Germany in mind: "The coming together of the nations of Europe requires the elimination of the age-old opposition of France and Germany. Any action taken must in the first place concern these two countries." Portraying the coal and steel industries as integral to the production of munitions, Schuman proposed that uniting these two industries across France and Germany under an innovative supranational system (that also included a European anti-cartel agency) would "make war between France and Germany [...] not only unthinkable but materially impossible".

Negotiations
Following the Schuman Declaration in May 1950, negotiations on what became the Treaty of Paris (1951) began on 20 June 1950. The objective of the treaty was to create a single market in the coal and steel industries of the member states. Customs duties, subsidies, discriminatory and restrictive practices were all to be abolished. The single market was to be supervised by a High Authority, with powers to handle extreme shortages of supply or demand, to tax, and to prepare production forecasts as guidelines for investment.

A key issue in the negotiations for the treaty was the break-up of the excessive concentrations in the coal and steel industries of the Ruhr, where the Konzerne, or trusts, had underlain the military power of the former Reich. The Germans regarded the concentration of coal and steel as one of the bases of their economic efficiency, and a right. The steel barons were a formidable lobby because they embodied a national tradition.

The US was not officially part of the treaty negotiations, but it was a major force behind the scenes. The US High Commissioner for Occupied Germany, John McCloy, was an advocate of decartelization and his chief advisor in Germany was a Harvard anti-trust lawyer, Robert Bowie. Bowie was asked to draft anti-trust articles, and texts of the two articles he prepared (on cartels and the abuse of monopoly power) became the basis of the treaty's competition policy regime. Also, Raymond Vernon (of later fame for his studies on industrial policy at Harvard university) was passing every clause of successive drafts of the treaty under his microscope down in the bowels of the State Department. He stressed the importance of the freedom of the projected common market from restrictive practices.

The Americans insisted that the German coal sales monopoly, the Deutscher Kohlenverkauf (DKV), should lose its monopoly, and that the steel industries should no longer own the coalmines. It was agreed that the DKV would be broken up into four independent sales agencies. The steel firm Vereinigte Stahlwerke was to be divided into thirteen firms, and Krupp into two. Ten years after the Schuman negotiations, a US State Department official noted that while the articles as finally agreed were more qualified than American officials in touch with the negotiations would have wished, they were "almost revolutionary" in terms of the traditional European approach to these basic industries.

Political pressures and treaty ratification
In West Germany, Karl Arnold, the Minister President of North Rhine-Westphalia, the state that included the coal and steel producing Ruhr, was initially spokesman for German foreign affairs. He gave a number of speeches and broadcasts on a supranational coal and steel community at the same time as Robert Schuman began to propose this Community in 1948 and 1949. The Social Democratic Party of Germany (Sozialdemokratische Partei Deutschlands, SPD), in spite of support from unions and other socialists in Europe, decided it would oppose the Schuman plan. Kurt Schumacher's personal distrust of France, capitalism, and Konrad Adenauer aside, he claimed that a focus on integrating with a "Little Europe of the Six" would override the SPD's prime objective of German reunification and thus empower ultra-nationalist and Communist movements in democratic countries. He also thought the ECSC would end any hopes of nationalising the steel industry and lock in a Europe of "cartels, clerics and conservatives". Younger members of the party like Carlo Schmid, were, however, in favor of the Community and pointed to the long socialist support for the supranational idea.

In France, Schuman had gained strong political and intellectual support from all sections of the nation and many non-communist parties. Notable amongst these were ministerial colleague Andre Philip, president of the Foreign Relations Committee Edouard Bonnefous, and former prime minister, Paul Reynaud. Projects for a coal and steel authority and other supranational communities were formulated in specialist subcommittees of the Council of Europe in the period before it became French government policy. Charles de Gaulle, who was then out of power, had been an early supporter of "linkages" between economies, on French terms, and had spoken in 1945 of a "European confederation" that would exploit the resources of the Ruhr. However, he opposed the ECSC as a faux (false) pooling ("le pool, ce faux semblant") because he considered it an unsatisfactory "piecemeal approach" to European unity and because he considered the French government "too weak" to dominate the ECSC as he thought proper. De Gaulle also felt that the ECSC had an insufficient supranational mandate because its Assembly was not ratified by a European referendum and he did not accept Raymond Aron's contention that the ECSC was intended as a movement away from United States domination. Consequently, de Gaulle and his followers in the RPF voted against ratification in the lower house of the French Parliament.

Despite these attacks and those from the extreme left, the ECSC found substantial public support. It gained strong majority votes in all eleven chambers of the parliaments of the Six, as well as approval among associations and European public opinion. In 1950, many had thought another war was inevitable. The steel and coal interests, however, were quite vocal in their opposition. The Council of Europe, created by a proposal of Schuman's first government in May 1948, helped articulate European public opinion and gave the Community idea positive support.

The UK Prime Minister Clement Attlee opposed Britain joining the proposed European Coal and Steel Community, saying that he 'would not accept the [UK] economy being handed over to an authority that is utterly undemocratic and is responsible to nobody.'

Treaty
The 100-article Treaty of Paris, which established the ECSC, was signed on 18 April 1951 by "the inner six": France, West Germany, Italy, Belgium, the Netherlands and Luxembourg. The ECSC was based on supranational principles and was, through the establishment of a common market for coal and steel, intended to expand the economy, increase employment, and raise the standard of living within the Community. The market was also intended to progressively rationalise the distribution of production whilst ensuring stability and employment. The common market for coal was opened on 10 February 1953, and for steel on 1 May 1953. Upon taking effect, the ECSC replaced the International Authority for the Ruhr.

On 11 August 1952, the United States was the first non-ECSC member to recognise the Community and stated it would now deal with the ECSC on coal and steel matters, establishing its delegation in Brussels. Monnet responded by choosing Washington, D.C., as the site of the ECSC's first external presence. The headline of the delegation's first bulletin read "Towards a Federal Government of Europe".

Six years after the Treaty of Paris, the Treaties of Rome were signed by the six ECSC members, creating the European Economic Community (EEC) and the European Atomic Energy Community (EAEC or Euratom). These Communities were based, with some adjustments, on the ECSC. The Treaties of Rome were to be in force indefinitely, unlike the Treaty of Paris, which was to last for a renewable period of fifty years. These two new Communities worked on the creation of a customs union and nuclear power community respectively.

Merger Treaty and expiry
Despite being separate legal entities, the ECSC, EEC and Euratom initially shared the Common Assembly and the European Court of Justice, although the Councils and the High Authority/Commissions remained separate. To avoid duplication, the Merger Treaty merged these separate bodies of the ECSC and Euratom with those of the EEC. The EEC later became one of the three pillars of the present day European Union.

The Treaty of Paris was frequently amended as the EC and EU evolved and expanded. With the treaty due to expire in 2002, debate began at the beginning of the 1990s on what to do with it. It was eventually decided that it should be left to expire. The areas covered by the ECSC's treaty were transferred to the Treaty of Rome and the financial loose ends and the ECSC research fund were dealt with via a protocol of the Treaty of Nice. The treaty finally expired on 23 July 2002. That day, the ECSC flag was lowered for the final time outside the European Commission in Brussels and replaced with the EU flag.

Institutions
The institutions of the ECSC were the High Authority, the Common Assembly, the Special Council of Ministers and the Court of Justice. A Consultative Committee was established alongside the High Authority, as a fifth institution representing producers, workers, consumers and dealers (article 18). These institutions were merged in 1967 with those of the European Community, except for the Consultative Committee, which continued to be independent until the expiration of the Treaty of Paris in 2002.

The Treaty stated that the location of the institutions would be decided by common accord of the members, yet the issue was hotly contested. As a temporary compromise, the institutions were provisionally located in the City of Luxembourg, while the Assembly was based in Strasbourg.

High Authority

The High Authority (the predecessor to the European Commission) was a nine-member executive body which governed the ECSC. The Authority consisted of nine members in office for a term of six years, appointed by the governments of the six signatories. Two were from each of France, Germany and Italy; and one from each of Belgium, Luxembourg, and the Netherlands. These members appointed a person among themselves to be President of the High Authority.

Despite being appointed by agreement of national governments acting together, the members were to pledge not to represent their national interest, but rather took an oath to defend the general interests of the Community as a whole. Their independence was aided by members being barred from having any occupation outside the Authority or having any business interests (paid or unpaid) during their tenure and for three years after they left office. To further ensure impartiality, one third of the membership was to be renewed every two years (article 10).

The Authority had a broad area of competence to ensure the objectives of the treaty were met and that the common market functioned smoothly. The High Authority could issue three types of legal instruments: Decisions, which were entirely binding laws; Recommendations, which had binding aims but the methods were left to member states; and Opinions, which had no legal force.

Up to the merger in 1967, the authority had five Presidents followed by an interim President serving for the final days.

Other institutions
The Common Assembly (the forerunner to the European Parliament) was composed of 78 representatives: 18 from each of France, Germany, and Italy; 10 from Belgium and the Netherlands; and 4 from Luxembourg (article 21). It exercised supervisory powers over the executive High Authority (article 20). The Common Assembly representatives were to be national MPs delegated each year by their Parliaments to the Assembly or directly elected "by universal suffrage" (article 21), though in practice it was the former, as there was no requirement for elections until the Treaties of Rome and no actual election until 1979, as Rome required agreement in the council on the electoral system first. However, to emphasise that the chamber was not a traditional international organisation composed of representatives of national governments, the Treaty of Paris used the term "representatives of the peoples". Some hoped the Community would use the institutions (Assembly, Court) of the Council of Europe, and The Treaty's Protocol on Relations with the Council of Europe encouraged links between the two institutions' assemblies. The ECSC Assembly was intended as a democratic counter-weight and check to the High Authority, to advise but also to have power to sack the Authority (article 24). The first President (akin to a Speaker) was Paul-Henri Spaak.

The Special Council of Ministers (the forerunner to the Council of the European Union) was composed of representatives of national governments. The Presidency was held by each state for a period of three months, rotating between them in alphabetical order. One of its key aspects was the harmonisation of the work of the High Authority and that of national governments. The council was also required to issue opinions on certain areas of work of the High Authority. Issues relating only to coal and steel were in the exclusive domain of the High Authority, and in these areas the council (unlike the modern council) could only act as a scrutiny on the Authority. However, areas outside coal and steel required the consent of the council.

The Court of Justice was to ensure the observation of ECSC law along with the interpretation and application of the Treaty. The Court was composed of seven judges, appointed by common accord of the national governments for six years. There were no requirements that the judges had to be of a certain nationality, simply that they be qualified and that their independence be beyond doubt. The Court was assisted by two Advocates General.

The Consultative Committee (forerunner to the Economic and Social Committee) had between 30 and 51 members equally divided between producers, workers, consumers and dealers in the coal and steel sector (article 18). There were no national quotas, and the treaty required representatives of European associations to organise their own democratic procedures. They were to establish rules to make their membership fully representative for democratic organised civil society. Members were appointed for two years and were not bound by any mandate or instruction of the organisations which appointed them. The committee had a plenary assembly, bureau and president. Nomination of these members remained in the hands of the council. The High Authority was obliged to consult the committee in certain cases where it was appropriate and to keep it informed. The Consultative Committee remained separate (despite the merger of the other institutions) until 2002, when the Treaty expired and its duties were taken over by the Economic and Social Committee (ESC).

Members
After the original six members, the ESCS expanded to all members of the European Economic Community (later renamed the European Community) and the European Union (15 countries in 2002 at the time of the expiry of the Treaty of Paris).

Major Goal: ending war between Member States
Schuman described the goal as to "make war not only unthinkable but materially impossible" for signatory States. This is described in the treaty's preamble. It commences quoting the French Government Proposal of Schuman:

"World peace cannot be safeguarded without creative measures commensurate with the dangers which threaten it." Europe had been at the centre of world wars. For this the Community created the world's first international anti-cartel agency. Treaty Chapters VI Ententes et Concentrations and VII on the Free Market describe joint action against cartels and trusts which were instrumental in world war arms races, and activities leading to the disruption of the free market.

The Six Founder Member States are now living in the longest period of peace in more than 2000 years of their histories.

Economic
The economic mission of the ECSC (article 2) was to "contribute to economic expansion, the development of employment and the improvement of the standard of living in participating countries". Writing in Le Monde in 1970, Gilbert Mathieu argued the Community had little effect on coal and steel production, which was influenced more by global trends. From 1952, oil, gas, and electricity became competitors to coal, so the 28% reduction in the amount of coal mined in the Six had little connection with the Treaty of Paris. However, the Treaty caused costs to be reduced by the abolition of discriminatory railway tariffs, and this promoted trade between members: steel trade increased tenfold. The High Authority also issued 280 modernization loans which helped the industry to improve output and reduce costs.

Mathieu claims the ECSC failed to achieve several fundamental aims of the Treaty of Paris. He argues that the "pool" did not prevent the resurgence of large coal and steel groups, such as the Konzerne, which helped Adolf Hitler build his war machine. The cartels and major companies re-emerged, leading to apparent price fixing. Furthermore, the Community failed to define a common energy policy. Mathieu also argues the ECSC fell short of ensuring an upward equalisation of pay of workers within the industry. These failures could be put down to overambition in a short period of time, or that the goals were merely political posturing to be ignored.

The ECSC's greatest achievements relate to welfare issues, according to Mathieu. Some miners had extremely poor housing and over 15 years the ECSC financed 112,500 flats for workers, paying US$1,770 per flat, enabling workers to buy a home they could not have otherwise afforded. The ECSC also paid half the occupational redeployment costs of those workers who had lost their jobs as coal and steel facilities began to close down. Combined with regional redevelopment aid the ECSC spent $150 million (835 million francs) creating around 100,000 jobs, a third of which were offered to unemployed coal and steel workers. The welfare guarantees invented by the ECSC were copied and extended by several of the Six to workers outside the coal and steel sectors.

Far more important than creating Europe's first social and regional policy, Robert Schuman argued that the ECSC introduced European peace. It involved the continent's first European tax. This was a flat tax, a levy on production with a maximum rate of one percent. Given that the European Community countries are now experiencing the longest period of peace in more than seventy years, this has been described as the cheapest tax for peace in history. Another world war, or "world suicide" as Schuman called this threat in 1949, was avoided.

title: European Coal and Steel Community


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European Economic Community

The European Economic Community (EEC) was a regional organisation created by the Treaty of Rome of 1957, aiming to foster economic integration among its member states. It was subsequently renamed the European Community (EC) upon becoming integrated into the first pillar of the newly formed European Union (EU) in 1993. In the popular language, the singular European Community was sometimes inaccurately used in the wider sense of the plural European Communities, in spite of the latter designation covering all the three constituent entities of the first pillar. The EEC was also known as the European Common Market (ECM) in the English-speaking countries, and sometimes referred to as the European Community even before it was officially renamed as such in 1993. In 2009, the EC formally ceased to exist and its institutions were directly absorbed by the EU. This made the Union the formal successor institution of the Community.

The Community's initial aim was to bring about economic integration, including a common market and customs union, among its six founding members: Belgium, France, Italy, Luxembourg, the Netherlands and West Germany. It gained a common set of institutions along with the European Coal and Steel Community (ECSC) and the European Atomic Energy Community (EURATOM) as one of the European Communities under the 1965 Merger Treaty (Treaty of Brussels). In 1993 a complete single market was achieved, known as the internal market, which allowed for the free movement of goods, capital, services, and people within the EEC. In 1994 the internal market was formalised by the EEA agreement. This agreement also extended the internal market to include most of the member states of the European Free Trade Association, forming the European Economic Area, which encompasses 15 countries.

Upon the entry into force of the Maastricht Treaty in 1993, the EEC was renamed the European Community to reflect that it covered a wider range than economic policy. This was also when the three European Communities, including the EC, were collectively made to constitute the first of the three pillars of the European Union, which the treaty also founded. The EC existed in this form until it was abolished by the 2009 Treaty of Lisbon, which incorporated the EC's institutions into the EU's wider framework and provided that the EU would "replace and succeed the European Community".

Background
In April 1951, the Treaty of Paris was signed, creating the European Coal and Steel Community (ECSC). This was an international community based on supranationalism and international law, designed to help the economy of Europe and prevent future war by integrating its members.

With the aim of creating a federal Europe two further communities were proposed: a European Defence Community and a European Political Community. While the treaty for the latter was being drawn up by the Common Assembly, the ECSC parliamentary chamber, the proposed defence community was rejected by the French Parliament. ECSC President Jean Monnet, a leading figure behind the communities, resigned from the High Authority in protest and began work on alternative communities, based on economic integration rather than political integration. Following the Messina Conference in 1955, Paul-Henri Spaak was given the task to prepare a report on the idea of a customs union. The so-called Spaak Report of the Spaak Committee formed the cornerstone of the intergovernmental negotiations at Val Duchesse conference centre in 1956. Together with the Ohlin Report the Spaak Report would provide the basis for the Treaty of Rome.

In 1956, Paul-Henri Spaak led the Intergovernmental Conference on the Common Market and Euratom at the Val Duchesse conference centre, which prepared for the Treaty of Rome in 1957. The conference led to the signature, on 25 March 1957, of the Treaty of Rome establishing a European Economic Community.

Creation and early years
The resulting communities were the European Economic Community (EEC) and the European Atomic Energy Community (EURATOM or sometimes EAEC). These were markedly less supranational than the previous communities, due to protests from some countries that their sovereignty was being infringed (however there would still be concerns with the behaviour of the Hallstein Commission). Germany became a founding member of the EEC, and Konrad Adenauer was made leader in a very short time. The first formal meeting of the Hallstein Commission was held on 16 January 1958 at the Chateau de Val-Duchesse. The EEC (direct ancestor of the modern Community) was to create a customs union while Euratom would promote co-operation in the nuclear power sphere. The EEC rapidly became the most important of these and expanded its activities. The first move towards political developments came at the end of 1959 when the foreign ministers of the six members announced that would be meeting quarterly to discuss political issues and international problems. One of the first important accomplishments of the EEC was the establishment (1962) of common price levels for agricultural products. In 1968, internal tariffs (tariffs on trade between member nations) were removed on certain products.

Another crisis was triggered in regard to proposals for the financing of the Common Agricultural Policy, which came into force in 1962. The transitional period whereby decisions were made by unanimity had come to an end, and majority-voting in the council had taken effect. Then-French President Charles de Gaulle's opposition to supranationalism and fear of the other members challenging the CAP led to an "empty chair policy" whereby French representatives were withdrawn from the European institutions until the French veto was reinstated. Eventually, a compromise was reached with the Luxembourg compromise on 29 January 1966 whereby a gentlemen's agreement permitted members to use a veto on areas of national interest.

On 1 July 1967, when the Merger Treaty came into operation, combining the institutions of the ECSC and Euratom into that of the EEC, they already shared a Parliamentary Assembly and Courts. Collectively they were known as the European Communities. The Communities still had independent personalities although were increasingly integrated. Future treaties granted the community new powers beyond simple economic matters which had achieved a high level of integration. As it got closer to the goal of political integration and a peaceful and united Europe, what Mikhail Gorbachev described as a Common European Home.

Enlargement and elections
The 1960s saw the first attempts at enlargement. In 1961, Denmark, Ireland, the United Kingdom and Norway (in 1962), applied to join the three Communities. However, President Charles de Gaulle saw British membership as a Trojan Horse for U.S. influence and vetoed membership, and the applications of all four countries were suspended. Greece became the first country to join the EC in 1961 as an associate member, however its membership was suspended in 1967 after a coup d'état established a military dictatorship called the Regime of the Colonels.

A year later, in February 1962, Spain attempted to join the European Community. However, because Francoist Spain was not a democracy, all members rejected the request in 1964.

The four countries resubmitted their applications on 11 May 1967 and with Georges Pompidou succeeding Charles de Gaulle as French president in 1969, the veto was lifted. Negotiations began in 1970 under the pro-European UK government of Edward Heath, who had to deal with disagreements relating to the Common Agricultural Policy and the UK's relationship with the Commonwealth of Nations. Nevertheless, two years later the accession treaties were signed so that Denmark, Ireland and the UK joined the Community effective 1 January 1973. The Norwegian people had rejected membership in a referendum on 25 September 1972.

The Treaties of Rome had stated that the European Parliament must be directly elected, however this required the Council to agree on a common voting system first. The Council procrastinated on the issue and the Parliament remained appointed, French President Charles de Gaulle was particularly active in blocking the development of the Parliament, with it only being granted Budgetary powers following his resignation.

Parliament pressured for agreement and on 20 September 1976 the Council agreed part of the necessary instruments for election, deferring details on electoral systems which remain varied to this day. During the tenure of President Jenkins, in June 1979, the elections were held in all the then-members (see 1979 European Parliament election). The new Parliament, galvanised by direct election and new powers, started working full-time and became more active than the previous assemblies.

Shortly after its election, the Parliament proposed that the Community adopt the flag of Europe design used by the Council of Europe. The European Council in 1984 appointed an ad hoc committee for this purpose. The European Council in 1985 largely followed the Committee's recommendations, but as the adoption of a flag was strongly reminiscent of a national flag representing statehood, was controversial, the "flag of Europe" design was adopted only with the status of a "logo" or "emblem".

The European Council, or European summit, had developed since the 1960s as an informal meeting of the Council at the level of heads of state. It had originated from then-French President Charles de Gaulle's resentment at the domination of supranational institutions (e.g. the Commission) over the integration process. It was mentioned in the treaties for the first time in the Single European Act (see below).

Toward Maastricht
Greece re-applied to join the community on 12 June 1975, following the restoration of democracy, and joined on 1 January 1981. Following on from Greece, and after their own democratic restoration, Spain and Portugal applied to the communities in 1977 and joined on 1 January 1986. In 1987, Turkey formally applied to join the Community and began the longest application process for any country.

With the prospect of further enlargement, and a desire to increase areas of co-operation, the Single European Act was signed by the foreign ministers on 17 and 28 February 1986 in Luxembourg and The Hague respectively. In a single document it dealt with reform of institutions, extension of powers, foreign policy cooperation and the single market. It came into force on 1 July 1987. The act was followed by work on what would be the Maastricht Treaty, which was agreed on 10 December 1991, signed the following year and coming into force on 1 November 1993 establishing the European Union, and paving the way for the European Monetary Union.

European Community
The EU absorbed the European Communities as one of its three pillars. The EEC's areas of activities were enlarged and were renamed the European Community, continuing to follow the supranational structure of the EEC. The EEC institutions became those of the EU, however the Court, Parliament and Commission had only limited input in the new pillars, as they worked on a more intergovernmental system than the European Communities. This was reflected in the names of the institutions, the Council was formally the "Council of the European Union" while the Commission was formally the "Commission of the European Communities".

There are more competencies listed in Article 3 of the European Communities pillar than there are in Article 3 of the Treaty of Rome. This is due to the fact that some competencies were already inherent in the Treaty of Tome, some were referred to in the Treaty of Rome, and some were extended under Article 235 of the Treaty of Rome. Competencies were added to cover trans-European networks, and the work of the Culture Committee and Education Committee that were previously sharing existing competencies. The only entry in Article 3 that represented something new is the competence covering the entry and movement of persons in the internal market.

However, after the Treaty of Maastricht, Parliament gained a more formal role. Maastricht brought in the codecision procedure, which gave it equal legislative power with the Council on Community matters. This replaced the informal parliamentary blocking powers established by the 1979 Isoglucose decision.

It also abolished any existing state like Simple Majority voting in the EEC, replacing it with Qualified Majority Voting, a procedure more commonly used in international organisations.

The Treaty of Amsterdam transferred responsibility for free movement of persons (e.g., visas, illegal immigration, asylum) from the Justice and Home Affairs (JHA) pillar to the European Community (JHA was renamed Police and Judicial Co-operation in Criminal Matters (PJCC) as a result). Both Amsterdam and the Treaty of Nice also extended codecision procedure to nearly all policy areas, giving Parliament equal power to the Council in the Community.

In 2002, the Treaty of Paris which established the ECSC expired, having reached its 50-year limit (as the first treaty, it was the only one with a limit). No attempt was made to renew its mandate; instead, the Treaty of Nice transferred certain of its elements to the Treaty of Rome and hence its work continued as part of the EC area of the European Community's remit.

After the entry into force of the Treaty of Lisbon in 2009 the pillar structure ceased to exist. The European Community, together with its legal personality, was absorbed into the newly consolidated European Union which merged in the other two pillars (however Euratom remained distinct). This was originally proposed under the European Constitution but that treaty failed ratification in 2005.

Aims and achievements
The main aim of the EEC, as stated in its preamble, was to "preserve peace and liberty and to lay the foundations of an ever closer union among the peoples of Europe". Calling for balanced economic growth, this was to be accomplished through:

 * 1) The establishment of a customs union with a common external tariff
 * 2) Common policies for agriculture, transport and trade, including standardization (for example, the CE marking designates standards compliance)
 * 3) Enlargement of the EEC to the rest of Europe

Citing Article 2 from the original text of the Treaty of Rome of the 25th of March 1957, the EEC aimed at "a harmonious development of economic activities, a continuous and balanced expansion, an increase in stability, an accelerated raising of the standard of living and closer relations between the States belonging to it". Given the fear of the Cold War, many Western Europeans were afraid that poverty would make "the population vulnerable to communist propaganda" (Meurs 2018, p. 68), meaning that increasing prosperity would be beneficial to harmonise power between the Western and Eastern blocs, other than reconcile Member States such as France and Germany after WW2. The tasks entrusted to the Community were divided among an assembly, the European Parliament, Council, Commission, and Court of Justice. Moreover, restrictions to market were lifted to further liberate trade among Member States. Citizens of Member States (other than goods, services, and capital) were entitled to freedom of movement. The CAP, Common Agricultural Policy, regulated and subsided the agricultural sphere. A European Social Fund was implemented in favour of employees who lost their jobs. A European Investment Bank was established to "facilitate the economic expansion of the Community by opening up fresh resources" (Art. 3 Treaty of Rome 3/25/1957). All these implementations included overseas territories. Competition was to be kept alive to make products cheaper for European consumers.

For the customs union, the treaty provided for a 10% reduction in custom duties and up to 20% of global import quotas. Progress on the customs union proceeded much faster than the twelve years planned. However, France faced some setbacks due to their war with Algeria.

Members
The six states that founded the EEC and the other two Communities were known as the "inner six" (the "outer seven" were those countries who formed the European Free Trade Association). The six were France, West Germany, Italy and the three Benelux countries: Belgium, the Netherlands and Luxembourg. The first enlargement was in 1973, with the accession of Denmark, Ireland and the United Kingdom. Greece, Spain and Portugal joined in the 1980s. The former East Germany became part of the EEC upon German reunification in 1990. Following the creation of the EU in 1993, it has enlarged to include an additional sixteen countries by 2013.

Member states are represented in some form in each institution. The Council is also composed of one national minister who represents their national government. Each state also has a right to one European Commissioner each, although in the European Commission they are not supposed to represent their national interest but that of the Community. Prior to 2004, the larger members (France, Germany, Italy and the United Kingdom) have had two Commissioners. In the European Parliament, members are allocated a set number seats related to their population, however these (since 1979) have been directly elected and they sit according to political allegiance, not national origin. Most other institutions, including the European Court of Justice, have some form of national division of its members.

Institutions
There were three political institutions which held the executive and legislative power of the EEC, plus one judicial institution and a fifth body created in 1975. These institutions (except for the auditors) were created in 1957 by the EEC but from 1967 onwards they applied to all three Communities. The Council represents the state governments, the Parliament represents citizens and the Commission represents the European interest. Essentially, the Council, Parliament or another party place a request for legislation to the Commission. The Commission then drafts this and presents it to the Council for approval and the Parliament for an opinion (in some cases it had a veto, depending upon the legislative procedure in use). The Commission's duty is to ensure it is implemented by dealing with the day-to-day running of the Union and taking others to Court if they fail to comply. After the Maastricht Treaty in 1993, these institutions became those of the European Union, though limited in some areas due to the pillar structure. Despite this, Parliament in particular has gained more power over legislation and security of the Commission. The Court of Justice was the highest authority in the law, settling legal disputes in the Community, while the Auditors had no power but to investigate.

Background
The EEC inherited some of the Institutions of the ECSC in that the Common Assembly and Court of Justice of the ECSC had their authority extended to the EEC and Euratom in the same role. However the EEC, and Euratom, had different executive bodies to the ECSC. In place of the ECSC's Council of Ministers was the Council of the European Economic Community, and in place of the High Authority was the Commission of the European Communities.

There was greater difference between these than name: the French government of the day had grown suspicious of the supranational power of the High Authority and sought to curb its powers in favour of the intergovernmental style Council. Hence the Council had a greater executive role in the running of the EEC than was the situation in the ECSC. By virtue of the Merger Treaty in 1967, the executives of the ECSC and Euratom were merged with that of the EEC, creating a single institutional structure governing the three separate Communities. From here on, the term European Communities were used for the institutions (for example, from Commission of the European Economic Community to the Commission of the European Communities).

Council

The Council of the European Communities was a body holding legislative and executive powers and was thus the main decision making body of the Community. Its Presidency rotated between the member states every six months and it is related to the European Council, which was an informal gathering of national leaders (started in 1961) on the same basis as the Council.

The Council was composed of one national minister from each member state. However the Council met in various forms depending upon the topic. For example, if agriculture was being discussed, the Council would be composed of each national minister for agriculture. They represented their governments and were accountable to their national political systems. Votes were taken either by majority (with votes allocated according to population) or unanimity. In these various forms they share some legislative and budgetary power of the Parliament. Since the 1960s the Council also began to meet informally at the level of heads of government and heads of state; these European summits followed the same presidency system and secretariat as the Council but was not a formal formation of it.

Commission
The Commission of the European Communities was the executive arm of the community, drafting Community law, dealing with the day to running of the Community and upholding the treaties. It was designed to be independent, representing the interest of the Community as a whole. Every member state submitted one commissioner (two from each of the larger states, one from the smaller states). One of its members was the President, appointed by the Council, who chaired the body and represented it.

Parliament
Under the Community, the European Parliament (formerly the European Parliamentary Assembly) had an advisory role to the Council and Commission. There were a number of Community legislative procedures, at first there was only the consultation procedure, which meant Parliament had to be consulted, although it was often ignored. The Single European Act gave Parliament more power, with the assent procedure giving it a right to veto proposals and the cooperation procedure giving it equal power with the Council if the Council was not unanimous.

In 1970 and 1975, the Budgetary treaties gave Parliament power over the Community budget. The Parliament's members, up-until 1980 were national MPs serving part-time in the Parliament. The Treaties of Rome had required elections to be held once the Council had decided on a voting system, but this did not happen and elections were delayed until 1979 (see 1979 European Parliament election). After that, Parliament was elected every five years. In the following 20 years, it gradually won co-decision powers with the Council over the adoption of legislation, the right to approve or reject the appointment of the Commission President and the Commission as a whole, and the right to approve or reject international agreements entered into by the Community.

Court
The Court of Justice of the European Communities was the highest court of on matters of Community law and was composed of one judge per state with a president elected from among them. Its role was to ensure that Community law was applied in the same way across all states and to settle legal disputes between institutions or states. It became a powerful institution as Community law overrides national law.

Auditors
The fifth institution is the European Court of Auditors. Its ensured that taxpayer funds from the Community budget had been correctly spent by the Community's institutions. The ECA provided an audit report for each financial year to the Council and Parliament and gave opinions and proposals on financial legislation and anti-fraud actions. It is the only institution not mentioned in the original treaties, having been set up in 1975.

Policy areas
At the time of its abolition, the European Community pillar covered the following areas;

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/

title: European Economic Community


text:
EFTA (disambiguation)

EFTA is the European Free Trade Association, a trade organisation and free trade area.

EFTA may also refer to:

 * European Fair Trade Association, an association of eleven fair trade importers
 * European Federation of Taiwanese Associations
 * Electronic Fund Transfer Act, act passed by the U.S. Congress in 1978

title: EFTA (disambiguation)


text:
European Free Trade Association

The European Free Trade Association (EFTA) is a regional trade organization and free trade area consisting of four European states: Iceland, Liechtenstein, Norway and Switzerland. The organization operates in parallel with the European Union (EU), and all four member states participate in the European Single Market and are part of the Schengen Area. They are not, however, party to the European Union Customs Union.

EFTA was historically one of the two dominant western European trade blocs, but is now much smaller and closely associated with its historical competitor, the European Union. It was established on 3 May 1960 to serve as an alternative trade bloc for those European states that were unable or unwilling to join the then European Economic Community (EEC), the main predecessor of the EU. The Stockholm Convention (1960), to establish the EFTA, was signed on 4 January 1960 in the Swedish capital by seven countries (known as the "outer seven": Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom). A revised Convention, the Vaduz Convention, was signed on 21 June 2001 and entered into force on 1 June 2002.

After 1995 only two founding members remained, namely Norway and Switzerland. The other five, Austria, Denmark, Portugal, Sweden and the United Kingdom, had joined the EU at some point in the intervening years. The initial Stockholm Convention was superseded by the Vaduz Convention, which aimed to provide a successful framework for continuing the expansion and liberalization of trade, both among the organization's member states and with the rest of the world.

While the EFTA is not a customs union and member states have full rights to enter into bilateral third-country trade arrangements, it does have a coordinated trade policy. As a result, its member states have jointly concluded free trade agreements with the EU and a number of other countries. To participate in the EU's single market, Iceland, Liechtenstein, and Norway are parties to the Agreement on a European Economic Area (EEA), with compliances regulated by the EFTA Surveillance Authority and the EFTA Court. Switzerland has a set of multilateral agreements with the EU and its member states instead.

History
On 12 January 1960, the Convention establishing the European Free Trade Association was initiated in the Golden Hall of the Stockholm City Hall. This established the progressive elimination of customs duties on industrial products, but did not affect agricultural or fisheries products.

The main difference between the early EEC and the EFTA was that the latter did not operate common external customs tariffs unlike the former: each EFTA member was free to establish its individual customs duties against, or its individual free trade agreements with, non-EFTA countries.

The founding members of the EFTA were: Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom. During the 1960s, these countries were often referred to as the "Outer Seven", as opposed to the Inner Six of the then European Economic Community (EEC).

Finland became an associate member in 1961 and a full member in 1986, and Iceland joined in 1970. The United Kingdom and Denmark joined the EEC in 1973 and hence ceased to be EFTA members. Portugal also left EFTA for the European Community in 1986. Liechtenstein joined the EFTA in 1991 (previously its interests had been represented by Switzerland). Austria, Sweden, and Finland joined the EU in 1995 and thus ceased to be EFTA members.

Twice, in 1972 and in 1994, the Norwegian government had tried to join the EU (still the EEC, in 1973) and by doing so, leave the EFTA. However, both the times, the membership of the EU was rejected in national referendums, keeping Norway in the EFTA. Iceland applied for EU membership in 2009 due to the 2008–2011 Icelandic financial crisis, but has since dropped its bid.

Other negotiations

Between 1994 and 2011, EFTA memberships for Andorra, San Marino, Monaco, the Isle of Man, Turkey, Israel, Morocco, and other European Neighbourhood Policy partners were discussed.

Andorra, Monaco, and San Marino
In November 2012, after the Council of the European Union had called for an evaluation of the EU's relations with Andorra, Monaco, and San Marino, which they described as "fragmented", the European Commission published a report outlining the options for their further integration into the EU. Unlike Liechtenstein, which is a member of the EEA via the EFTA and the Schengen Agreement, relations with these three states are based on a collection of agreements covering specific issues. The report examined four alternatives to the current situation: However, the Commission argued that the sectoral approach did not address the major issues and was still needlessly complicated, while EU membership was dismissed in the near future because "the EU institutions are currently not adapted to the accession of such small-sized countries". The remaining options, EEA membership and a FAA with the states, were found to be viable and were recommended by the commission. In response, the Council requested that negotiations with the three microstates on further integration continue, and that a report be prepared by the end of 2013 detailing the implications of the two viable alternatives and recommendations on how to proceed.
 * 1) A Sectoral Approach with separate agreements with each state covering an entire policy area.
 * 2) A comprehensive, multilateral Framework Association Agreement (FAA) with the three states.
 * 3) EEA membership, and
 * 4) EU membership.

As EEA membership is currently only open to EFTA or EU member states, the consent of existing EFTA member states is required for the microstates to join the EEA without becoming members of the EU. In 2011, Jonas Gahr Støre, then Foreign Minister of Norway which is an EFTA member state, said that EFTA/EEA membership for the microstates was not the appropriate mechanism for their integration into the internal market due to their different requirements from those of larger countries such as Norway, and suggested that a simplified association would be better suited for them. Espen Barth Eide, Støre's successor, responded to the commission's report in late 2012 by questioning whether the microstates have sufficient administrative capabilities to meet the obligations of EEA membership. However, he stated that Norway would be open to the possibility of EFTA membership for the microstates if they decided to submit an application, and that the country had not made a final decision on the matter. Pascal Schafhauser, the Counsellor of the Liechtenstein Mission to the EU, said that Liechtenstein, another EFTA member state, was willing to discuss EEA membership for the microstates provided their joining did not impede the functioning of the organization. However, he suggested that the option of direct membership in the EEA for the microstates, outside of both the EFTA and the EU, should be considered. On 18 November 2013, the EU Commission concluded that "the participation of the small-sized countries in the EEA is not judged to be a viable option at present due to the political and institutional reasons", and that Association Agreements were a more feasible mechanism to integrate the microstates into the internal market.

Norway
The Norwegian electorate had rejected treaties of accession to the EU in two referendums. At the time of the first referendum in 1972, their neighbour, Denmark joined. Since the second referendum in 1994, two other Nordic neighbours, Sweden and Finland, have joined the EU. The last two governments of Norway have not advanced the question, as they have both been coalition governments consisting of proponents and opponents of EU membership.

Switzerland
Since Switzerland rejected the EEA membership in a referendum in 1992, more referendums on EU membership have been initiated, the last time being in 2001. These were all rejected. Switzerland has been in a customs union with fellow EFTA member state and neighbour Liechtenstein since 1924.

Iceland
On 16 July 2009, the government of Iceland formally applied for EU membership, but the negotiation process was suspended in mid-2013, and in 2015 the foreign ministers wrote to withdraw its application.

Faroe Islands (Kingdom of Denmark)
Denmark was a founding member of EFTA in 1960, but its membership ended in 1973, when it joined the European Communities. The autonomous territories of the Kingdom of Denmark were covered by Denmark's EFTA membership: Greenland from 1961 and the Faroe Islands from 1968. In mid-2005, representatives of the Faroe Islands raised the possibility of their territory re-joining the EFTA. Because Article 56 of the EFTA Convention only allows sovereign states to become members of the EFTA, the Faroes considered the possibility that the "Kingdom of Denmark in respect of the Faroes" could join the EFTA on their behalf. The Danish Government has stated that this mechanism would not allow the Faroes to become a member of the EEA because Denmark was already a party to the EEA Agreement.

The Faroes already have an extensive bilateral free trade agreement with Iceland, known as the Hoyvík Agreement.

United Kingdom
The United Kingdom was a co-founder of EFTA in 1960, but ceased to be a member upon joining the European Economic Community. The country held a referendum in 2016 on withdrawing from the EU (popularly referred to as "Brexit"), resulting in a 51.9% vote in favour of withdrawing. A 2013 research paper presented to the Parliament of the United Kingdom proposed a number of alternatives to EU membership which would continue to allow it access to the EU's internal market, including continuing EEA membership as an EFTA member state, or the Swiss model of a number of bilateral treaties covering the provisions of the single market.

In the first meeting since the Brexit vote, EFTA reacted by saying both that they were open to a UK return, and that Britain has many issues to work through. The president of Switzerland Johann Schneider-Ammann stated that its return would strengthen the association. However, in August 2016 the Norwegian Government expressed reservations. Norway's European affairs minister, Elisabeth Vik Aspaker, told the Aftenposten newspaper: "It's not certain that it would be a good idea to let a big country into this organization. It would shift the balance, which is not necessarily in Norway's interests."

In late 2016, the Scottish First Minister said that her priority was to keep the whole of the UK in the European single market but that taking Scotland alone into the EEA was an option being "looked at". However, other EFTA states have stated that only sovereign states are eligible for membership, so it could only join if it became independent from the UK, unless the solution scouted for the Faroes in 2005 were to be adopted (see above).

In early 2018, British MPs Antoinette Sandbach, Stephen Kinnock and Stephen Hammond all called for the UK to rejoin EFTA.

Relationship with the European Union: the European Economic Area
In 1992, the EU, its member states, and the EFTA member states signed the Agreement on the European Economic Area in Porto, Portugal. However, the proposal that Switzerland ratify its participation was rejected by referendum. (Nevertheless, Switzerland has multiple bilateral treaties with the EU that allow it to participate in the European Single Market, the Schengen Agreement and other programmes). Thus, except for Switzerland, the EFTA members are also members of the European Economic Area (EEA). The EEA comprises three member states of the European Free Trade Association (EFTA) and 27 member states of the European Union (EU), including Croatia which the agreement is provisionally applied to, pending its ratification by all contracting parties. It was established on 1 January 1994 following an agreement with the European Economic Community (which had become the European Community two months earlier). It allows the EFTA-EEA states to participate in the EU's Internal Market without being members of the EU. They adopt almost all EU legislation related to the single market, except laws on agriculture and fisheries. However, they also contribute to and influence the formation of new EEA relevant policies and legislation at an early stage as part of a formal decision-shaping process. One EFTA member, Switzerland, has not joined the EEA but has a series of bilateral agreements, including a free trade agreement, with the EU.

The following table summarises the various components of EU laws applied in the EFTA countries and their sovereign territories. Some territories of EU member states also have a special status in regard to EU laws applied as is the case with some European microstates.

EEA institutions
A Joint Committee consisting of the EEA-EFTA States plus the European Commission (representing the EU) has the function of extending relevant EU law to the non-EU members. An EEA Council meets twice yearly to govern the overall relationship between the EEA members.

Rather than setting up pan-EEA institutions, the activities of the EEA are regulated by the EFTA Surveillance Authority and the EFTA Court. The EFTA Surveillance Authority and the EFTA Court regulate the activities of the EFTA members in respect of their obligations in the European Economic Area (EEA). Since Switzerland is not an EEA member, it does not participate in these institutions.

The EFTA Surveillance Authority performs a role for EFTA members that is equivalent to that of the European Commission for the EU, as "guardian of the treaties" and the EFTA Court performs the European Court of Justice-equivalent role.

The original plan for the EEA lacked the EFTA Court: the European Court of Justice was to exercise those roles. However, during the negotiations for the EEA agreement, the European Court of Justice ruled by the Opinion 1/91 that it would be a violation of the treaties to give to the EU institutions these powers with respect to non-EU member states. Therefore, the current arrangement was developed instead.

EEA and Norway Grants
The EEA and Norway Grants are the financial contributions of Iceland, Liechtenstein and Norway to reduce social and economic disparities in Europe. They were established in conjunction with the 2004 enlargement of the European Economic Area (EEA), which brought together the EU, Iceland, Liechtenstein and Norway in the Internal Market. In the period from 2004 to 2009, €1.3 billion of project funding was made available for project funding in the 15 beneficiary states in Central and Southern Europe. The EEA and Norway Grants are administered by the Financial Mechanism Office, which is affiliated to the EFTA Secretariat in Brussels.

International conventions
EFTA also originated the Hallmarking Convention and the Pharmaceutical Inspection Convention, both of which are open to non-EFTA states.

International trade relations

EFTA has 29 free trade agreements with non-EU countries as well as declarations on cooperation and joint workgroups to improve trade. Currently, the EFTA States have established preferential trade relations with 40 states and territories, in addition to the 27 member states of the European Union.

EFTA's interactive Free Trade Map gives an overview of the partners worldwide.

Ongoing free trade negotiations
Signed:
 * Central America 🇬🇹 Guatemala (Signed 22 June 2015)
 * 🇮🇳 India (Signed 10 March 2024)

Concluded:
 *  Mercosur (Concluded 23 August 2019) 🇦🇷 Argentina 🇧🇷 Brazil 🇵🇾 Paraguay 🇺🇾 Uruguay
 * 🇲🇩 Moldova (Concluded 24 March 2023)

Negotiations:
 * Kosovo (Since June 2022)
 * 🇲🇾 Malaysia (Since November 2012)
 * 🇹🇭 Thailand (Restarted June 2022)
 * Vietnam (Since July 2012)

Negotiations currently on hold
 * 🇩🇿 Algeria
 * 🇭🇳 Honduras (Central American States)
 *  Eurasian Economic Union 🇧🇾 Belarus 🇰🇿 Kazakhstan 🇷🇺 Russia

Declarations on cooperation
 * 🇲🇺 Mauritius
 * 🇲🇳 Mongolia
 * 🇲🇲 Myanmar (on hold since 2022)
 * 🇵🇰 Pakistan

Obsolete agreements
The following agreements are no longer active:

 * 🇧🇬 Bulgaria (1995–2007)
 * 🇭🇷 Croatia (2002–2013)
 * 🇨🇿 Czech Republic (1993–2004)
 * Czechoslovakia (1992–1993)
 * 🇪🇪 Estonia (1996–2004)
 * 🇭🇺 Hungary (1995–2004)
 * 🇱🇻 Latvia (1996–2004)
 * 🇱🇹 Lithuania (1996–2004)
 * 🇵🇱 Poland (1995–2004)
 * 🇷🇴 Romania (1995–2007)
 * 🇸🇰 Slovakia (1993–2004)
 * 🇸🇮 Slovenia (1995–2004)
 * Spain (1980–1986)
 * 🇹🇷 Turkey (1995–2021)

Free movement of people within EFTA and the EU/EEA
EFTA member states' citizens enjoy freedom of movement in each other's territories in accordance with the EFTA convention. EFTA & EEA nationals also enjoy freedom of movement in the European Union (EU). EFTA nationals and EU citizens are not only visa-exempt but are legally entitled to enter and reside in each other's countries. The Citizens' Rights Directive (also sometimes called the "Free Movement Directive") defines the right of free movement for citizens of the European Economic Area (EEA), which includes the three EFTA members Iceland, Norway and Liechtenstein plus the member states of the EU. Switzerland, which is a member of EFTA but not of the EEA, is not bound by the Directive but rather has a separate multilateral agreement on free movement with the EU and its member states.

As a result, a citizen of an EFTA country can live and work in all the other EFTA countries and in all the EU countries, and a citizen of an EU country can live and work in all the EFTA countries (but for voting and working in sensitive fields, such as government / police / military, citizenship is often required, and non-citizens may not have the same rights to welfare and unemployment benefits as citizens).

Portugal Fund
The Portugal Fund came into operation in February 1977 when Portugal was still a member of EFTA. It was to provide funding for the development of Portugal after the Carnation Revolution and the consequential restoration of democracy and the decolonization of the country's overseas possessions. This followed a period of economic sanctions by most of the international community, which left Portugal economically underdeveloped compared to the rest of the western Europe. When Portugal left EFTA in 1985 in order to join the EEC, the remaining EFTA members decided to continue the Portugal Fund so that Portugal would continue to benefit from it. The Fund originally took the form of a low-interest loan from the EFTA member states to the value of US$100 million. Repayment was originally to commence in 1988, however, EFTA then decided to postpone the start of repayments until 1998. The Portugal Fund was dissolved in January 2002.

title: European Free Trade Association