The EU was very successful in its efforts at rebuilding after the devastating World War II and also helped erstwhile communist nations to become stable post the demolition of the Berlin Wall in 1989, the committee noted.
The Peace Prize is worth 1.2 million dollars. It will be presented in Oslo on Dec 10.
In 1958, the European Economic Community was formed by France, West Germany, Italy, The Netherlands, Belgium and Luxembourg. The common aim was greater economic integration. Over the course of time, several other European countries joined the community.
In Nov 1993, the EU was established. Today, it is a 27-nation bloc but the Eurozone crisis has put a severe strain on the grouping.