Treaty on the Functioning of the European Union Treaty on the Functioning of the European Union The Treaty on the Functioning of the European Union (2007) is one of two primary Treaties of the European Union, alongside the Treaty on European Union (TEU). Originating as the Treaty of Rome, the TFEU forms the detailed basis of European Union law, by setting out the scope of the EU's authority to legislate and the principles of law in those areas where EU law operates. The TFEU originated as the treaty establishing the European Economic Community (the EEC treaty), signed in Rome on 25 March 1957. On 7 February 1992, the
European Economic Area idea of the EEC enlarging with more member states, as he feared that it would impede the ability of the Community to complete the internal market reform and establish the monetary union. Delors proposed a European Economic Space (EES) in January 1989, which was later renamed the European Economic Area, as it is known today. By the time the EEA was established, however, several developments hampered its credibility. First of all, Switzerland rejected the EEA agreement in a national referendum on 6 December 1992 obstructing full EU-EFTA integration within the EEA. Furthermore, Austria had applied for full EEC membership in