The formal adoption of the European flag occurred when the leaders of the European Community agreed on its design, featuring a blue background and twelve gold stars in a circle. This design was rooted in the Council of Europe's flag, which had been created in 1955. The flag's twelve stars are a symbol of unity, representing perfection and completeness, rather than the number of member states, illustrating the aspirational nature of European integration. The decision was made during a meeting of the European Council in Brussels, where it was recognized that a unifying symbol was crucial for the identity of an increasingly interconnected Europe.

In alignment with the rising tide of European integration, the flag was intended to represent the common values of peace, stability, and democracy shared by member nations. It was hoped that the flag would serve as a visual representation of European unity and cooperation, especially during a period when the continent was still healing from the impacts of World War II and the division caused by the Cold War. The choice to adopt the flag formally also coincided with broader political and social changes within Europe, including the move towards the creation of a single market and economic cohesion through initiatives like the Single European Act.

The adoption of the European flag marked a significant step towards creating a European identity, transcending national symbols. As member states faced new challenges and opportunities, this emblem would eventually serve as a backdrop to numerous developments in European politics, economics, and culture. The flag would be prominently used in the European Union’s institutions and during official events, further embedding its significance within the European context.