Maastricht Treaty: Definition, Purpose, History, and Significance
What Is the Maastricht Treaty?
The international pact that led to the founding of the European Union (EU) is referred to as the Maastricht Treaty. The pact was signed in the Dutch city of Maastricht in 1992, and it went into effect the following year. It promoted unified citizenship along with economic, social, and advancement, which increased collaboration between the 12 signatory countries. The pact also established the framework for the euro, a unified currency. Since it was signed, it has undergone numerous revisions. The European Union had 27 member countries as of October 2021.
- The European Union was established on the basis of the Maastricht Treaty.
- The agreement was ratified in 1993 after being signed by 12 nations in the Dutch city of Maastricht in 1992.
- Greater collaboration between member nations was fostered through economic, social, and legal avenues.
- The single currency system for the euro was established under the Maastricht Treaty.
- Several amendments to the agreement were made between 1997 and 2009.
Understanding the Maastricht Treaty
On February 7, 1992, delegates of the 12 member countries that comprised the European Community (EC) signed the Maastricht Treaty in the Dutch city of Maastricht. In December 1991, negotiations for the accord got under way.
The idea of the EU was under discussion and required voter support in each nation, including:
- Belgium
- Denmark
- France
- Germany
- Greece
- Ireland
- Italy
- Luxembourg
- Netherlands
- Portugal
- Spain
- United Kingdom and Northern Ireland
The Treaty on European Union, as it is officially known, became operative on November 1, 1993.
By establishing a common European citizenship that would permit Europeans to move, live, and work freely among member states, the treaty aimed to foster greater collaboration. It also produced a system of common security, foreign, and economic policies. Additionally, member countries decided to work together on legal and security matters.
The European Economic and Monetary Union (EMU) formation and implementation timeframe was laid forth in the treaty. A central banking system, a shared currency, and an economic and monetary union were all intended components of the EMU. In 1998, the European Central Bank (ECB) was established as a precursor to the introduction of the euro, which went into circulation in 2002, once the end-of-year exchange rates between member nations’ currencies were fixed.
It also outlined the requirements that nations must achieve in order to join the euro. Inflation, public debt, interest rates, and exchange rates had to be steady in the countries that would be adopting the euro, therefore this was a precaution.
Special Considerations
The treaty was amended a number of times since it was first ratified:
- In 1997, The Treaty of Amsterdam added to some of the social protection points in the original treaty, including those referring to asylum seekers and immigration, sex discrimination, and living and working conditions.
- The Treaty of Nice, which went into effect in February 2003, reformed the Treaty of Maastricht in preparation for new member states. This agreement gave the Commission’s president more autonomy from member state governments. It also provided member states with more power to integrate policies in some areas, despite the need for national vetoes.
- The Treaty of Lisbon amended existing treaties rather than replacing them. It established an EU presidency, strengthened the union’s foreign policy representation, and transferred greater power to the union’s judiciary, parliament, and commission. It went into effect in December 2009 after two years of votes in member countries.2
Effects of the Maastricht Treaty
Every citizen of a member state was given EU citizenship by the treaty, enabling them to run for local office and European Parliament elections in the EU nation where they resided regardless of their nationality.
The accord established the present central banking system by establishing a common economic and monetary union. Maintaining price stability is the ECB’s primary goal, which ultimately means preserving the value of the euro. The free flow of capital between the member states was the first step in this process, which paved the way for more coordination between national central banks and greater economic policy alignment among the states. The launch of the euro was the last action.
Greater policy cooperation and coordination overall was one of the main objectives. the social, environmental, and policing.