European Economic Integration

European Economic Integration refers to the ongoing process of aligning and unifying the economic policies and markets of European nations, primarily through the institutional framework of the European Union (EU). Originating in the post-World War II era with the goal of fostering peace and prosperity, this process has evolved through distinct stages, including the elimination of internal trade barriers (a customs union), the establishment of a Single Market ensuring the free movement of goods, services, capital, and labor, and culminating for many members in an Economic and Monetary Union (EMU) featuring a common currency, the Euro. The fundamental objective is to create a single, large-scale economic area to enhance efficiency, stimulate competition, and increase the collective economic power and stability of its member states.

1. Foundations of European Economic Integration
   1. Historical Context
      1. Post-World War II Reconstruction
         1. Economic Devastation and Rebuilding Needs
         2. Marshall Plan and US Involvement
         3. Division of Europe
            1. East vs. West Split
            2. Iron Curtain Formation
            3. Cold War Economic Implications
      2. The Schuman Declaration (1950)
         1. Key Proposals and Vision
         2. Role of France and Germany
         3. Coal and Steel Sector Focus
         4. Immediate Reactions and Impact
      3. Motivations for Integration
         1. Securing Peace
            1. Franco-German Reconciliation
            2. Preventing Future Conflicts
            3. War-to-Peace Transformation
         2. Economic Prosperity
            1. Rebuilding War-Torn Economies
            2. Promoting Trade and Growth
            3. Industrial Modernization
         3. Political Stability
            1. Strengthening Democratic Institutions
            2. Reducing Extreme Nationalism
            3. Constitutional Democracy Promotion
         4. Counterbalancing Superpowers
            1. US and Soviet Union Influence
            2. European Voice in Global Affairs
            3. Third Way Development
   2. Theories of Economic Integration
      1. Classical Integration Theory
         1. Customs Union Theory
         2. Trade Creation and Trade Diversion
         3. Welfare Effects Analysis
      2. Functionalism
         1. Core Concepts and Principles
         2. Spillover Effects
         3. Technical vs. Political Integration
      3. Neofunctionalism
         1. Role of Supranational Institutions
         2. Political Spillover Mechanisms
         3. Elite Socialization Process
      4. Intergovernmentalism
         1. State-Centric Approach
         2. National Interests and Bargaining
         3. Liberal Intergovernmentalism
      5. Supranationalism
         1. Transfer of Sovereignty
         2. Role of Supranational Bodies
         3. Pooled Sovereignty Concept
      6. Optimal Currency Area Theory
         1. Criteria for Currency Unions
            1. Labor Mobility
            2. Capital Mobility
            3. Price and Wage Flexibility
            4. Fiscal Transfers
            5. Similar Business Cycles
         2. Application to the Eurozone
         3. Endogeneity of OCA Criteria
   3. Early Institutions and Treaties
      1. European Coal and Steel Community
         1. Treaty of Paris (1951)
            1. Founding Members
            2. Institutional Structure
            3. High Authority Powers
            4. Objectives and Achievements
         2. Coal and Steel Market Integration
         3. Precedent for Future Integration
      2. European Economic Community
         1. Treaty of Rome (1957)
            1. Founding Principles
            2. Creation of Common Market
            3. Institutions Established
            4. Timeline for Implementation
         2. Common Market Objectives
         3. Agricultural Integration Provisions
      3. European Atomic Energy Community
         1. Treaty of Rome (1957)
            1. Purpose and Goals
            2. Role in Energy Cooperation
            3. Nuclear Technology Sharing
            4. Safety and Security Provisions