The treaty worked to free the movement of goods, services, capital and labor between its member nations.
In 1960, as a result and in an attempt to destroy or absorb the proposed EEC common market, the U.K. and Sweden created the European Free Trade Association (EFTA). EFTA was an attempt to conserve Britains role and economic position which was remotely attractive to major Western European states.
In 1963, the Prime Minister of U.K., Harold Macmillan, decided to change Britain’s foreign policy towards the European Community and attempted to join EEC. He suggested to unite the member countries of EFTA with ECC to incorporate all of Europe but France vetoed further talks. Macmillan saw that the exclusion from EEC was damaging to Britain both economically and politically. The following sections will presents the reasons why Macmillan’s administration chose to opt for European Community membership.
To maintain Britain’s world role in the face of economic enervation, Macmillan did not follow Anthony Eden’s policy of reliance on the United States. He evolved the British strategy to include a new relationship with Europe to complement the increasingly unreliable American proxy (Ruane amp. Ellison 2004:1).
Eden’s administration saw that the maintenance of the British extended empire placed a burden on the countrys economy beyond its resources. They manipulated a foreign policy to ensure that the country’s strength was equal to its obligations. They aimed to persuade the U.S. to assume burdens of an international defence organization while retaining for Britain as much political control as possible. This was the only solution Eden came up with to spread the burden of two major obligations for which Britain currently bore primary responsibility.
In January 1957, the Suez Canal crisis brought down Prime Minister Eden and caused his resignation to be succeeded by Harold