European Coal and Steel Community

After WW2, the German production of strategic raw materials for arms industry was controlled because of security reasons, and Germany was allowed to produce only limited quantities of coal and steel. However, for economic reasons the restrictions could not last forever. In May 1950, French Foreign Minister Robert Schuman proposed a potential solution (so-called Schuman Plan), consisting in establishing a community of states, including both Germany and France, in which the production of coal and steel would be controlled by a collective body. The strategic raw materials would thus be kept under control, and the risk of another war breaking out would be diminished. 

France and Germany expected to be joined by other states, which would also be subordinated to the collective control body, the so-called High Authority, responsible for modernization and improved quality of production, supplies of coal and steel under equal terms and conditions to all member countries, and improved working conditions of employees in coal and steel industries. The Schuman Plan was implemented and, as early as in 1951, the so-called Treaty of Paris, which came into effect in 1952, created the European Coal and Steel Community (ECSC). At the same time, a common coal and steel market was established and deliveries of these commodities crossing borders of the member states were exempted from customs duties and freight tariffs. As mentioned above, the  Schuman Plan was designed mainly for France and Germany, but the countries of Benelux (Belgium, Netherlands, Luxembourg) and Italy, i.e. major producers of coal and steel, were also invited to cooperate. The United Kingdom was also given an offer to join, but declined, as it did not want to conform to an supranational control body.