Changes in Europe and the EC
Supporters of an and monetary union argued that there could not be a single market as long as on money and exchange premiums limited the free flow of capital. A three-stage plan for EMU was suggested. At the same time, the proposed a social charter on human rights. Great Britain voiced opposition to both proposals, expressing concern that its sovereignty would be threatened if the power of the EC was . However, Great Britain joined the plan for EMU as changes swept throughout Europe causing the need for a swift and united from the EC.

As Communism crumbled in eastern Europe, many of the former Communist countries looked to the EC for political and . The EC agreed to and association agreements with many of the countries, but ruled out immediate membership. An emergency summit in April 1990 made an exception for East Germany, allowing the country to be into the EC upon completion of German reunification. At this same summit, West Germany and France proposed an intergovernmental (IGC) to closer European unity in the wake of the rapid political upheaval. The British minister Margaret Thatcher opposed calls for increased unity, but in 1990 John Major became minister and adopted a more conciliatory towards the idea of European unity. The IGC, along with a working on a timetable for the EMU, began work on a of agreements that became the Treaty on European Union.

Treaty on European Union
Representatives from each of the EC countries negotiated the Treaty on European Union in 1991, and in December the European Council met at Maastricht, the Netherlands, to consider a . After bargaining among members, the treaty was signed by the European Council on February 7, 1992. A provision of the treaty mandated that the voters of each member state had to approve the European Union by popular referendum; the treaty was ratified in October 1993. The European Union was on November 1, when the treaty went into effect.

Outlook
The EU represents a desire for peace and among sovereign European states. With increased and growth, the EU may become a unit. However, the long-term of a single European political state as envisioned by the original proponents of European has largely been .

The number of member countries in the EU is expected to increase by the end of the . Turkey applied for membership in 1987; Austria in 1989; Cyprus and Malta in 1990; Sweden in 1991; and Switzerland, Finland, and Norway in 1992. Several eastern European countries are also expected to apply for membership. Switzerland later withdrew its membership application to avoid its history of . In June 1994 Austrian voters overwhelmingly affirmed a referendum on EU membership and prepared to join in 1995. Finland, Austria, and Sweden joined the EU in 1995; after a referendum, Norway once again elected to remain outside.

Other EU applicants include members of the European Free Trade Association (EFTA). In 1991 the EC and EFTA completed an agreement to the European , which would provide a single market for goods, services, and capital. The European , which took effect on January 1, 1994, trade barriers between the EU and EFTA, each of which is the other's largest trading .