3.  After WWII, the economy of the European countries was destroyed.  Marshall Plan (1948-52): USA invests close to $13 billion to stabilize Western European countries.  Why?  Because it wanted international trade partners.

4.  Treaty of Rome (1958): The European Economic Community (EEC) joins the European Coal and Steel Community (ECSC).  The EEC creates a common market (no customs duties) for agricultural products and industrial production.

5.  Member countries could trade with each other without having to pay customs duties.  This leads to increased trade between EEC countries.

6.  Common Agricultural Policy (1962): The EEC would give subsidies (money) and put measures in place to protect agricultural production from foreign competition.  Example: a farmer who is subsidised can sell his produce at a cheaper price than a farmer who isn’t.  Other countries have complained that this is unfair competition with respect to their own agricultural producers.

7.  Maastricht Treaty: (1993) the creation of the European Union (EU).  The EU has powers in the area of foreign policy, security, justice.  The EEC was replaced by the European Community (EC): to establish an economic and monetary union, free circulation of goods, services, people and money.

8.  No, some people didn’t want to lose national sovereignty (control over certain national issues) and some didn’t want a globalized market.  The Maastricht Treaty was only approved by a tiny majority.

10.  The Euro was introduced in 2002 and replaced the national currencies of many member countries.  Why have a common currency?  To make trade easier and bring about lower interest rates.

11.  Do all EU countries use the Euro?  No, the United Kingdom, Sweden, Danemark, Latvia, Lithuania, Poland, Czech Republic, Hungary, Romania and Bulgaria don’t.

12.  An EU country that adopts the Euro gives up part of its economic sovereignty.  In other words, by using the Euro, the country isn’t completely free to make decisions about its economy.