REGIONAL ECONOMIC INTEGRATION IN EUROPE

Europe has two block-EU trade and the European Free Trade Association. Of the two, the EU is far more important, not only in terms of membership (EU currently has 27 members, EFTA has 4), but also in terms of economic and political influence in the world economy. Many now see the EU as a growing economic and political superpower same order as the United States. Therefore, we will focus our attention on EU.7.

EVOLUTION OF UNI EROPA The European Union (EU) is the product of two political factors: (1) the destruction of Western Europe during the two world wars and the desire for a lasting peace, and (2) the desire of European countries to hold their own in the top of the political and economic world. In addition, many Europeans realized the potential economic benefits of close integration of the country's economy. The predecessor of the European Union, European Coal and Steel Community, established in 1951 by Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands. The aim is to remove barriers to intragroup deliveries of coal, iron, steel, and metal. The signing of the Treaty of Rome in 1957, the European Community was founded. The name changed again in 1994 when the European Community became after the ratification of the Maastricht Treaty the European Union (discussed later). Rome Treaty provided for the creation of a common market. Article 3 of the agreement put the main purpose of the new community, called for the removal of internal trade barriers and the creation of a common external tariff and members that require countries to eliminate barriers to the free movement of factors of production among members. To facilitate the free movement of goods, services and factors of production, the agreement provided for any necessary legal harmonization of member countries'. Agreement made the