Economic Integration And The European Union

1583 Words May 23rd, 2016 7 Pages
After the horrific aftermath that was created by World War II, Europe worked towards economic and political integration. The economic integration began in 1958, with the creation of the European Economic Community (EEC), which included Germany, France, Belgium, Italy, Luxembourg and the Netherlands. The EEC removed tariffs on goods produced within those six countries, in order to promote trade and reconstruction after the war. In 1993 the EEC was renamed to the European Union (EU), when the focus of just economic integration began to include policies of “climate, environment and health to external relations and security, justice and migration” in Europe (Europa). In 1981, Greece became a member of the EU. Twenty years later, Greece adopted the Euro as its currency. Recently, Greece has been experiencing many economic problems, that threaten the overall stability of the Euro. Although Greece is still part of the Eurozone today, its inability to pay off debt, lack of effective reform, and its negative effect on the European Union as a whole, will eventually lead to its exit from the Eurozone. The 2008 Great Recession, Greece had the highest debt in the European Union. The Greek inefficient tax collection, and its unemployment was “worse than unemployment in the United States during the Great Depression,” which made it very difficult to cut spending (O’Brien). Prior to joining the EU, Greece already experienced inflation and fiscal deficits (Johnston). Although the…
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