# Stages of Integration (Example: European Union) Economic integration involves the unification of economic policies between different states. The European Union (EU) demonstrates several key stages: ## 1. Free Trade Area - **Description:** Removal of tariffs and quotas between member countries. - **EU Example:** The European Economic Community (EEC) in 1957 eliminated customs duties among original members. ## 2. Customs Union - **Description:** Free trade area + common external tariff on imports from non-members. - **EU Example:** EEC established a common external tariff in 1968. ## 3. Common Market - **Description:** Customs union + free movement of goods, services, capital, and people. - **EU Example:** Single European Act (1986) created a single market by 1993. ## 4. Economic and Monetary Union - **Description:** Common market + coordination of economic policies + single currency. - **EU Example:** The Euro introduced in 1999; European Central Bank established. ## 5. Political Union (Not fully realized in the EU) - **Description:** Unified economic, foreign, and defense policies; shared institutions. - **EU Example:** EU has some supranational institutions (like the European Parliament), but full political union not achieved. --- **Final Answer:** The EU demonstrates economic integration through stages: free trade area, customs union, common market, and economic and monetary union (with the Euro), but has not fully achieved political union.