This research examines the European Economic Community (EEC). Although the EEC is commonly referred to in the singular, it is actually a collection of communities formed to deal with specific common functions, of which the economic community is one (McDonald and Zis, 1989). The term European Communities (EC) is sometimes used to refer to the several communities as a group. As greater integration within the EC occurs, the independence of action of the separate communities is diminished, and the EC moves closer to becoming an entity (Weinberger, 1990).
The term EEC is used in this research when referring to the EC as a whole, as well as when referring to the economic community. Where necessary for clarity of discussion, the other communities are referred to by name. Included in this examination are a tracing of the historical development of the EEC, an explanation of the further integration scheduled for 1992, and a consideration of potential developments beyond 1992.
THE THEORETICAL FRAMEWORK WITHIN WHICHEEC DEVELOPMENT HAS OCCURRED
There are five levels of regional integration (Grosse and Kujawa, 1988). The first level is the formation of a free trade area, and the second level is the evolution of the free trade area into a customs union. Beyond the customs union, the third level of integration is the common market. The common market, generally speaking, describes the pre 1992 level of integration in the EEC. The fourth level of integration is economic union. This is the level of integration which is scheduled to occur in the EEC in 1992 (The Economist, 1990, 7 July). The fifth level of integration is political union. Political union describes the integration of the states in the United States. Political union is also the ultimate goal of the EEC (The Economist, 1990, 28 April).
Each successive level of regional integration involves a greater degree of unified and common action. At the lowest level, t...