Maastricht Treaty

The Maastricht Treaty of Europe is an international agreement or treaty signed by 12 member nations that led to the foundation of the European Union (EU). The main goal of this treaty was to improve the relations and trade between the nations and avoid any disagreements.

With the Maastricht Treaty signed in 1992, the enforcement took place in 1993. It allowed the residents to use a single currency for trade within the member states. Plus, citizens could move and travel freely without any limits. As a result, the cooperation between European nations increased.

• The Maastricht Treaty, also known as the Treaty of the European Union (EU), was signed by 12 European nations to promote cooperation, establish a single currency (euro), and introduce singular citizenship between the member states.
• The treaty was signed in February 1992 and officially took effect on November 1st, 1993. 
• The Maastricht Treaty had three pillars: the European Communities (EC), which became vital to the EU; the common foreign and security policy (CFSP) aimed at safeguarding member states' interests and values; and the Justice and Home Affairs (JHA) pillar, which facilitated cooperation on domestic and foreign disputes.

The Maastricht Treaty of 1992 was signed by 12 European nations and played a vital role in the creation of the EU. It enabled the member nations to develop a sense of belief, cooperation, shared policies, and safety. In addition, residents have the freedom to vote during elections despite their citizenship status. In short, twelve European nations came under one roof. And this coverage was known as the "EU Maastricht treaty or Treaty on European Union."

The residents could use a single currency (euro) while trading with any European nation. However, there were certain criteria needed to deal with the euro. It included that the inflation rate should not exceed 1.5 points compared to the best three EU nations. Likewise, the interest rates should not exceed 2%, similar to the nations. Also, the annual fiscal deficit must be below 3%. In addition, the government debt should not cross 60%. Thus, it resulted in a unified policy and structure without any disagreements.

According to the Maastricht Treaty of Europe, the EU treaty has three pillars. The first pillar includes European Communities (EC), which became vital to the EU. Likewise, the second pillar is the common foreign and security policy (CFSP) for all. Their sole purpose was safeguarding the member states' interests, values, and independence. Furthermore, the last pillar allowed cooperation on domestic and foreign disputes with the help of the Justice and Home Affairs (JHA).

The EU Maastricht treaty involves a certain framework of articles within it. There are, in total, 37 articles drawn in 10 different languages. Plus, there were 20 declarations attached to it. The structure further has seven titles defining the related provisions and final protocols.

With the Maastricht treaty signed in 1992, the agreement's history dates back to the early 1900s. As the communist rule saw a downfall in 1989, it paved the way for the treaty to exist. Many countries left the Russian group and joined the western union. They wished to promote economic development in their nations.

In addition, many other instances also occurred. So, let us look at the events that occurred during the enforcement of the Maastricht Treaty of 1992:

Formation Of The European Union

During an intergovernmental conference, the member nations of the European Union signed the "Maastricht Treaty" on February 7, 1992, in Maastricht City. Later, the treaty came into effect on November 1, 1993. However, the discussion for the treaty was already laid in 1991. The European leaders proposed three stages before its implementation. In 1986, the leaders re-initiated the discussion on releasing a single currency instead of many. As a result, in 1989, it was divided into three stages. Let us look at them:

Stage #1 (July 1, 1990 - December 31, 1993)

Within this phase, the nations focused on the free movement of the capital within these states.

Stage #2 (January 1, 1994 - December 31, 1998)

In the second transition stage, the Maastricht Treaty of Europe combined the economic policies of all member states into one. In addition, there was communication and cooperation established between the central banks.

Stage #3 (January 1999 Till Today)

The euro was introduced within the member nations under the Single European Act of 1987. Plus, the treaty also enabled a single monetary policy for effective management. However, the actual use of the euro started in January 2002 by the general public.

Membership

In 1993, only 12 countries signed the Maastricht treaty. Of which Belgium, Denmark, the United Kingdom, France, the Netherlands, Greece, Portugal, Ireland, Italy, Luxembourg, Spain, and Germany. In the later stages (1993 to 2014), the number increased to 16 member nations. But, with the UK departing, the membership reached 27 countries.

Let us look at the significance of the Maastricht treaty that influenced growth in the member nations:

#1 - Promotion Of Economic Growth And Development

With the introduction of the Treaty of EU, the disagreement fences vanished. Each member nation focused on achieving a higher growth rate. They followed sound yet singular budget policies at the national level.

#2 - Social And Educational Rights Of The Citizens

Another impact of the Maastricht treaty was visible in the late 20th century. With the ease of traveling anywhere in the EU, citizens could easily work and avail of education. In addition, they could enjoy the additional rights of other nations. It included the right to consular protection during travel, standing and voting in the elections, and much more. As per reports, 17 million citizens have benefitted from this change.

Apart from this, various schemes like the Erasmus Plus program support youth education and sport.

#3 - Symbolizes A Unified And Green Europe

The EU proposed various policies to promote unity and cooperation among the member states. It means that not only communication but even transportation must be boosted. As per the Trans-European Transport Network (TEN-T) policy, there were railway lines, air modes, and roads. It led to an effective transport network created to connect all nations.

In addition, the Maastricht treaty also aims at reducing the carbon footprints on the environment. In response, the European Union has also achieved significant progress.

#4 - Influence On The Consumers And Healthcare sector

The Treaty of EU recognized the need to update consumer laws and regulations. So, whenever they buy products, the standards and quality is taken care of. At the same time, even the healthcare sector was improvised. It caused a significant impact on the healthcare services industry.

Although the Lisbon Treaty created certain amendments in the Maastricht Treaty, they varied in their objectives. So, let us look at their differences for better understanding:

This article has been a guide to what is Maastricht Treaty. Here, we explain its history, significance, and compare it with the Lisbon Treaty. You may also find some useful articles here -

• European Monetary System
• European Economic Community
• Eurozone