European Community

Britain is an active and committed member of the European Community, an association of 25 democratic states. Its net contribution to the Community budget in 1992 was about $1,700 million. The Community’s objectives – a common internal market, closer union between the people of Europe, common economic and trade policies, and a framework of Community law – were set out in the 1957 Treaty of Rome.

Under the Single European Act 1986, member states agreed to establish a genuinely free internal market by the end of 1992, the successful completion of which has been a priority of British policy.

The Maastricht Treaty on European union was agreed in December 1991 and ratified by all member states. Its provisions include greater cooperation in foreign and security policy and in judicial affairs, but on an intergovernmental basis rather than within the existing framework of Community law. It also provides for moves towards economic and monetary union, although Britain is not committed to adopting a single monetary policy or a single currency. Britain attaches particular importance to the principle of subsidiarity in the Treaty; this sets limits on Community competence and is designed to protect national identities.

In addition to common agricultural and fisheries policies, the Community promotes collaborative action by member states on:

- research and development designed to improve Europe’s technological base;

- environmental protection;

- job creation and labour mobility;

- economic restructuring to help lessdeveloped and declining regions of the Community; and

- education and vocational training schemes which encourage co-operation between educational establishments.

The aim of European political co-operation on foreign policy issues is to maximise the influence of the Twenty-five in international affairs.

The Community which acts for member states in international trade negotiations, accounts for 20 per cent of world trade. Over 50 per cent of Britain’s trade is with the other member states. The Community has agreed to extend the internal market to the countries of the European Free Trade Association. Overseas countries having special links with the Community are accorded preferential treatment in aid and the development of trade.