The Maastricht Treaty was an attempt to deepen European integration, with the aim of making it easier for both money and people to move through the region by harmonising various regulations.
It expanded the role of the European Community, giving it much more control over rules on business, and began the first steps to increase cooperation on foreign policy and legal affairs. A new entity, the European Union, was created to oversee these “three pillars”. It also laid out preliminary plans for a common currency.
At the time it proved very controversial. Critics on the left argued it would limit national governments’ ability to support their national industries, while those on the right were suspicious at what they saw as a Brussels power grab. A referendum in Denmark rejected it, before eventually passing it, while the French only narrowly voted to approve it. The John Major-led Conservative government had to threaten a snap election to get it through the House of Commons.
Estimates now suggest that as much as 75% of UK legislation originates in Brussels. Also, while the euro launched in 2002, the Maastricht criteria on debt were either fudged, or ignored, allowing countries like Greece and Italy to join, giving rise to the current crisis.
From 2009, the treaty was supplanted by the Amsterdam Treaty, which further reduced the power of individual national governments.