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The Single European Act established the European Community, which was dedicated to establishing a single, common European market, which eventually became known as the European Union. The act was finalized on 28 February 1986 and went into effect on 1 July 1987. It was the first major revision to the Treaty of Rome, which was signed in 1957 by France, West Germany, Belgium, Italy, Luxembourg and the Netherlands. The Treaty of Rome established the European Atomic Energy Community and the European Economic Community to increase industrial cooperation between the countries, specifically regarding atomic energy and steel and coal resources. The Single European Act was enacted largely because of growing discontent among European nations over the lack of free trade.
Business and political leaders sought to streamline the laws of member countries in order to increase cooperation and resolve discrepancies in the policies of member nations. They employed a committee to determine whether the common market was even possible. If it was, the committee also would determine what steps would need to be taken.
The committee determined that bureaucratic barriers needed to be removed in each member country, and steps were taken to increase competitiveness in each country, because some of the nations had economic systems that were hundreds of years old. There also was a great need for harmonization between the countries. For example, a German merchant traditionally would face a different set of rules and regulations when selling his product in France as opposed to Belgium. Also, merchants needed to receive a uniform price for their goods.
As the system was set up before the Single European Act, the prosperous countries became more prosperous. Meanwhile, those countries that needed to catch up economically were never given the chance, because the prosperous nations traded amongst themselves. The committee determined that this was merely a function of inefficient governance, and a set of well-thought out processes could be implemented to ensure that all member nations were competitive, not only with each other, but in an increasingly global economy.
The committee's findings eventually became the Single European Act. It was signed by the United Kingdom, France, Spain, Italy, West Germany, Belgium, Denmark, Greece, Ireland, The Netherlands, Portugal and Luxembourg. As a provision of the act, 1992 was set as the date when the European Single Market would be established. The Single European Act was followed by the Treaty of Maastricht in 1993 which formally established the European Union and the single currency, the Euro. The United Kingdom eventually declined to adopt the single currency, and it maintained the British Pound instead.
Frequently Asked Questions
What was the main goal of the Single European Act?
The Single European Act (SEA) aimed to establish a single market within the European Community, which would allow for the free movement of goods, services, people, and capital. Its objective was to enhance economic and social cohesion among member states, thereby increasing Europe's competitiveness in the global market. The SEA also sought to streamline decision-making processes and set the stage for further European integration.
When was the Single European Act signed and implemented?
The Single European Act was signed in February 1986 and came into effect on July 1, 1987. It marked a significant step in the European integration process, setting a deadline of December 31, 1992, for the completion of the internal market. This timeline was crucial for providing a clear framework for member states to harmonize their regulations and dismantle barriers to trade.
How did the Single European Act change the decision-making process within the European Community?
The Single European Act introduced qualified majority voting in the Council of Ministers for a wide range of areas related to the internal market, reducing the likelihood of individual nations blocking progress. This shift from unanimous to majority voting was instrumental in speeding up the legislative process and facilitating the implementation of laws necessary for the single market.
What were some of the key areas addressed by the Single European Act?
The Single European Act covered a broad spectrum of policies to support the creation of the single market. It included measures to harmonize standards, remove physical (borders), technical (standards), and fiscal (taxes) barriers, and improve economic and social cohesion. Additionally, it laid the groundwork for European Political Cooperation, which would eventually lead to the development of the European Union's Common Foreign and Security Policy.
Did the Single European Act have any impact on European political integration?
Yes, the Single European Act had a significant impact on European political integration. It formalized European Political Cooperation, a precursor to the European Union's Common Foreign and Security Policy, and increased the powers of the European Parliament. The SEA also set the stage for the Maastricht Treaty, which established the European Union and introduced new forms of cooperation in foreign policy, defense, justice, and home affairs.