The Treaty establishing the EEC affirmed in its preamble that signatory States were "determined to lay the foundations of an ever closer union among the peoples of Europe". In this way, the member States specifically affirmed the political objective of a progressive political integration.
The brand new institution was a customs union. As a consequence, the EEC was colloquially known as "Common Market". The member countries agreed to dismantle all tariff barriers over a 12-year transitional period. In view of the economic success that freer commercial exchanges brought about, the transitory term was shortened and in July 1968 all tariffs among the EEC States were abrogated. At the same time, a common tariff was established for all products coming from third countries.
How Tesco is Affected
Tesco would be affected in a positive way, as they would be able to trade with any other EU member state. This provides many options for Tesco as they are able to trade with all the twenty five member states, this means that Tesco is able to operate in all the countries and is able to set up in these countries, Tesco can then move staff that are specialised in one particular area. For example when Tesco was setting up in France they could move staff out there that could speak French, this would benefit Tesco as they would be able to move staff out there that Tesco could trust to the job of overseeing their operations in France while other people from inside the UK that cannot speak French can be moved in to oversee Tesco’s UK operations.
There are however disadvantages with this law as it means that if there was another large supermarket chain that existed in the EU, this would mean that Tesco’s UK operations could be threatened by another large chain, this would be mean that Tesco would now have to start competing with this other large chain, which means that Tesco would now have to start paying money to be able to compete with the new chain that is now threatening to take part of the market share away from Tesco. Tesco however would compete fiercely to keep the market share that they have worked hard to gain over many years, Tesco would also try appealing to the Competition Commission to try and block the large chain from entering the United Kingdom, this would however not be approved by the Competition Commission as with the European Union being a free trade organisation, also the other chain would carry out extensive methods to make sure that Tesco cannot block them moving into the United Kingdom.
The Single European Act (1986)
Jacques Delors, president of the European Commission, summarised the main objectives of the Single European Act in the following way:
"The Single Act means, in a few words, the commitment of implementing simultaneously the great market without frontiers, more economic and social cohesion, an European research and technology policy, the strengthening of the European Monetary System, the beginning of an European social area and significant actions in environment"
These are the main changes that the Single European Act introduced:
In the institutional field, it ratifies the European Council, that is to say, the periodical meeting of Head of State and Government, as the organism where major political negotiations take place among the Member States and great strategic decisions are taken. The competences of the European Parliament were lightly reinforced.
The main compromise agreed was to adopt measures guided to the progressive establishment of a common market over a period that would conclude on 31st December 1992. This would mean an area without obstacles to free movement of goods, people, services and capitals. This ambitious goal, summed up in 282 detailed measures, was broadly reached in the foreseen term. The common market became a reality.
Different procedures were passed to coordinate the monetary policy of the member States, paving the way toward the objective of economic and monetary union.
The Single Act included diverse initiatives to promote integration in the spheres of social rights (health and the workers' security), research and technology, and environment.
To achieve the objective of a greater economic and social cohesion among the diverse countries and regions of the Community, reform and financial support to the denominated Structural Funds, European Agricultural Guidance and Guarantee Fund (EAGGF), European Regional Development Fund (ERDF), European Social Fund (ESF) was settled.
How Tesco is Affected
Tesco would be at a disadvantage by this law as; Tesco would now have to offer initiatives to make sure that their workers safe in the workplace. However Tesco also stand to benefit from such a law as, the law sets down a policy which is know as the ERDF (European Regional Development Fund), this fund provides money for a businesses that are willing to extend and develop into areas of Europe that are in economic deficit. This would benefit Tesco in two areas, the first area would be that Tesco would grant to expand and employ people in the area. The second area would be that that Tesco’s corporate image would be improved, as they would be seen to be taking an active art in helping the poorer people of the countries that they operate in.
The Maastricht Treaty (1992)
The Treaty of Maastricht changed the official denomination of the EEC. Henceforth, it will be known as European Union.
The term Union is used from the very beginning of the Treaty to clearly convey the advancement in a historical project. This way, the article 2 of the Treaty of the European Union affirms:
"This Treaty marks a new stage in the process of creating an ever closer union among the peoples of Europe..."
The Treaty will have a structure based on three pillars, according to the artificial parlance created by those who devised and edited it. The metaphor used refers to a TEU made up as a Greek temple sustained by three pillars:
The first pillar, the central one, alludes to the Community dimension and comprises the arrangements set out in the EC, ECSC and Euratom Treaties, i.e. Union citizenship, Community policies, Economic and Monetary Union.
The new pillars, the lateral ones, are not based on supranational competences as the previous one, but in the cooperation among the governments: the second pillar is the Common foreign and security policy (CFSP) and the third one refers to Police and judicial cooperation in criminal matters.
Which is the great difference between the so-called community pillar and the new ones, based on intergovernmental cooperation? Basically it has to do with the procedure of taking decisions and with the competences of the community institutions. Meanwhile in the community pillar decisions passed on a majority will be more and more a general rule, and the role of community institutions is essential; in the so called intergovernmental cooperation pillars decisions must be taken take by common consent and the Commission, the European Parliament or the Court of Justice have scarcely competences.
How Tesco is Affected
Tesco is affected in both a positive way and a negative way. Tesco will be affected in a positive way by that the employees know that if they ever do want a child for example that they can have the child and Tesco will support them fully, until they are ready to come back to work. Another advantage is that Tesco will only part fund maternity schemes, by this I mean that an employee will pay into there National Insurance Policy, this means that if a person has a child they are eligible to go off and will be able to claim benefits from their employer (Tesco) and also of their National Insurance Policy
However there are negative points the implementation of such schemes will be extremely expensive, this cost will however will only be in the short term as over the long term period, the overall cost will go down.
The Treaty of Amsterdam (1997)
The Treaty of Amsterdam was approved by the European Council held in Amsterdam on 16th –17th June 1997 and signed on 2nd October 1997 by the Foreign Ministers of the fifteen member countries of the European Union. On 1st May 1999, it came into force having been ratified by all the member States, following their own constitutional rules.
As a legal document, the Treaty of Amsterdam has as main objective to modify certain regulations of the Treaty of the European Union, the constituent treaties of the European Communities (Paris and Rome) and of some acts related to them. It does not substitute the previous treaties, but rather it is added.
The Treaty of Amsterdam attracted widespread criticism. These are some of the main critical remarks:
It did not solve one of the greatest pending problems of the Union: the adaptation of the institutions to an increasingly wider Community. Some institutions were thought for an inferior number of member States and are not efficient for the Europe of the Fifteen, not to mention for the future Union that will arise from the future accession of Central and Eastern Europe countries.
For the more pro-Europe point of view, the Treaty was not a step courageous enough towards political Union. Community competences in spheres as common foreign and security policy (CFSP) or police and judicial cooperation were not enhanced.
No advance was done to work out the so known democratic deficit of the Union. The negotiations that precede the Treaty continued being based on give and take between governments and States, with neither public participation, nor transparent and sufficient information. The European Parliament, the sole community elected institution; role has not been sufficiently boosted. The text of the treaty went on being quite complicated -it consists of three parts, one annex and thirteen protocols- and is not easily intelligible neither to citizens, nor, even, to legal, economic and political agents that should act according to its regulations.
How Tesco is Affected
The Treaty of Amsterdam The social policy is the policy that sets out what employers must provide as satisfactory working conditions for their employees. If companies fail to comply with the social policy they could face serious fines, these fines could be in the millions of pounds, however there is not just the implications of costs, as there is also the reputation that could be damaged by the court case.
Tesco to ensure that they do not fall foul of the social policy make sure that they implement the highest standards of employee satisfaction; this means that then that Tesco will have happy employees, this would help Tesco as if there are happy employees then the service that Tesco is providing will be of a higher standard.
Although implementing the facilities to make sure that Tesco is in compliance with the social policy is expensive, it is in the interests of Tesco to make sure that they are in compliance with the social policy, as in the long term Tesco will actually save money as they will have the correct services and facilities in place so that they can provide these facilities and services to their employees so that Tesco can say that they are following the social policy and are implementing the requirements as set down in the social policy.
Over past years Tesco has strived to make sure that it offers the best working conditions for its employees, as Tesco know that in order to maintain its position in both the United Kingdom and in the European Union its employees are at the heart of delivering the award winning service, so Tesco go to great methods to preserve and develop the working conditions for its employees.
Tesco would be affected in a positive way as they would be given a grant to set up in a deprived area, this means that if Tesco for example set up in the Czech Republic, they could be given a grant for setting up here as Tesco would seen to be employing people from a deprived area which needs regeneration and re development. Tesco will take full advantage of these schemes as it does not only provide money but also Tesco will get the good corporate image promoted as a good one as they are prepared to operate in a deprived area.
