The first step in European integration was taken when six countries (Belgium, the Federal Republic of Germany, France, Italy, Luxembourg and the Netherlands) set up a common market in coal and steel. The aim, in the aftermath of the Second World War, was to secure peace between Europe's victorious and vanquished nations. .
Subsequently, the six member states decided to build a European Economic Community (EEC) based on a common market in a wide range of goods and services. During the 1960's common policies, notably on trade and agriculture were established and on July 1st 1968, custom duties between the six countries were completely removed. This venture was so successful that Denmark, Ireland and the United Kingdom decided to join the Communities. This first enlargement, from six to nine members, took place in 1973 and the Communities instantaneously undertook new tasks and introduced new policies- mainly concerning social, regional and environmental issues. To implement the regional policy, the European Regional Development Fund (ERDF) was set up in 1975.
In an effort to bring their economies into line with one another in the early 1970's, community leaders decided that a monetary union was needed. At about the same time, however, the United States choose to suspend the dollar's convertibility into gold. This lead to a period of great instability on the world's money markets, and was exacerbated by the oil crises of 1973 and 1979. The introduction of the European Monetary System (EMS) in 1979 helped to stabilise exchange rates and encouraged the Community member states to employ strict policies that allowed them to maintain their mutual solidarity and to discipline their economies.
Greece joined the Communities in 1981 and was followed by Spain and Portugal in 1986. This made it all the more imperative to introduce structural' programmes such as the first Integrated Mediterranean Programmes (IMP), aimed at reducing the economic development gap between the 12 member states.
