1. Introduction to the Research

This chapter provides a brief history of the European Union (EU) from its origins after World War Two and the establishment of the European Economic Community (EEC) in 1958 to encourage increased trade between six founder countries. The EU was formed as a political body in 1993, based on two key principles: the Principle of Proportionality and the Principle of Subsidiarity. These principles are introduced because the purpose of this research was to critically appraise the proportionality of intervention in the market economies of EU Member States, in the context of global financial crises. The EU regarded the consequent public sector debt levels as excessive and damaging to its development as defined in EU Treaties. The main sub-sections provide a background to the research, the origins of the EU, the research objectives and overview, outline methodology and a brief description of state structures and EU institutions.