Europe - Historical Background

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The European UnionThe European Union

Historical BackgroundHistorical Background


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After the Second World WarAfter the Second World War

The Second World War, the umpteenth militaryThe Second World War, the umpteenth militarycatastrophe that destroys Europe, againcatastrophe that destroys Europe, again ThisThisphenomenon is unknown to other continentsphenomenon is unknown to other continents

The !ictorious powers had di"erent !isions regardingThe !ictorious powers had di"erent !isions regardingthe future of Europe, which re#ected di"erent nationalthe future of Europe, which re#ected di"erent nationalsentiments They assem$led at the %ongress of thesentiments They assem$led at the %ongress of theHague &'()*+, and epressed the following !iews-Hague &'()*+, and epressed the following !iews-

%hurchill defended a United Europe, o$!iously ecluding%hurchill defended a United Europe, o$!iously ecludingthe United .ingdomthe United .ingdom

The USA ad!ocated European integration, as a capitalistThe USA ad!ocated European integration, as a capitalist$ulwark against So!iet epansion$ulwark against So!iet epansion The /rench were di!ided, $etween a strong nationalistThe /rench were di!ided, $etween a strong nationalist

faction &such as de 0aulle+, and the functionalists &suchfaction &such as de 0aulle+, and the functionalists &suchas Schuman and 1onnet+as Schuman and 1onnet+


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After the Second World WarAfter the Second World War

SchumanSchuman &foreign minister+, and&foreign minister+, and 1onnet1onnet &once deputy Secretary&once deputy Secretary0eneral of the 2eague of 3ations, international 4nancier,0eneral of the 2eague of 3ations, international 4nancier,coordinator of the allied war e"ort+ defendedcoordinator of the allied war e"ort+ defended practicalpractical, mainly, mainlyeconomic integration as way to make war a physical impossi$ilityeconomic integration as way to make war a physical impossi$ility&infrastructure, uni!ersities, $usiness life etc+&infrastructure, uni!ersities, $usiness life etc+0i!ing up a degree0i!ing up a degree

of so!ereignty was worth the outcome, a peaceful, united Europeof so!ereignty was worth the outcome, a peaceful, united Europe

As a rather patheticAs a rather pathetic compromisecompromise, the %ouncil of Europe was, the %ouncil of Europe wascreated in '()(, in order to institutionalisecreated in '()(, in order to institutionalise talking togethertalking together--

5 The %ouncil is wholly intergo!ernmental and weak to the etremeThe %ouncil is wholly intergo!ernmental and weak to the etreme5 The Council bears no connection whatsoever to theThe Council bears no connection whatsoever to the

European Union.European Union.5 6irtually all European countries, including those who are not6irtually all European countries, including those who are notmem$ers of the European Union, are mem$ers of the %ouncil ofmem$ers of the European Union, are mem$ers of the %ouncil ofEuropeEurope


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The European %oal andThe European %oal and

Steel %ommunitySteel %ommunity

Schuman proposed to integrate coal and steel,Schuman proposed to integrate coal and steel,two essential elements of the economy &$acktwo essential elements of the economy &$ackthen+, and hencethen+, and hencethe European %oal and Steelthe European %oal and Steel%ommunity &E%S%+ came into $eing in '(78,%ommunity &E%S%+ came into $eing in '(78,with the Treaty of 9aris, made up of siwith the Treaty of 9aris, made up of sicountries-countries-

'' 0ermany0ermany88 /rance/rance

:: ;taly;taly)) The 3etherlandsThe 3etherlands77 BelgiumBelgium


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;ts institutions were the following-;ts institutions were the following- TheThe High AuthorityHi

gh Authority&&the eecuti!e $odythe eecuti!e $ody+, which could impose certain+, which could impose certaindecisions, particularly relati!ely minor ones, on the nation states ;tdecisions, particularly relati!ely minor ones, on the nation states ;thad nine mem$ers- one from each of the three small states, and twohad nine mem$ers- one from each of the three small states, and twofrom each of the three large states The High Authority5mem$ersfrom each of the three large states The High Authority5mem$ers

operated independently fromoperated independently from

and did not representand did not represent theirtheirhome countries, internally di!ided into di"erenthome countries, internally di!ided into di"erent 4elds4elds

TheThe %ouncil of 1inisters%ouncil of 1inisters&&the legislati!e $odythe legislati!e $ody+, could co5decide o!er+, could co5decide o!erall key decisions, representing the nation5states =ecisions wereall key decisions, representing the nation5states =ecisions weretaking with all three !oting systems &simple ma>ority, ?uali4edtaking with all three !oting systems &simple ma>ority, ?uali4edma>ority, consensus+, according to the weight of the decision &thema>ority, consensus+, according to the weight of the decision &themore important the decision, the more intergo!ernmental themore important the decision, the more intergo!ernmental the

decision making system+decision making system+ TheThe Assem$lyAssem$l

y, technically the parliament, was !irtually powerless, technically the parliament, was !irtually powerless&although it could pass a motion of censure on the High Authority+ ;t&although it could pass a motion of censure on the High Authority+ ;twas elected $y the national parliamentswas elected $y the national parliaments

TheThe %ourt of @ustice%ourt of

@ustice, in case of disputes, in case of disputes


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SoSowhywhy did these countries decide to unitedid these countries decide to unite /irst, let /irst, let s look at the economics look at the economicconsiderations $ehind the decision-considerations $ehind the decision-

BelgiumBelgiums coal was uncompetiti!e, especially in the South et the go!ernments coal was uncompetiti!e, especially in the South et the go!ernmentwas incapa$le to shred this $urden due to the in#uence of the unions The E%S%was incapa$le to shred this $urden due to the in#uence of the unions The E%S%was an opportunity to transfer this pro$lem to an eternal institution Belgianwas an opportunity to transfer this pro$lem to an eternal institution Belgiansteel was competiti!e, and could use the occasion to increase sales 2uem$ourgsteel was competiti!e, and could use the occasion to increase sales 2uem$ourg

was part of Belgiumwas part of Belgiums economic system &Economic Union+, so had to go alongs economic system &Economic Union+, so had to go along /rance and ;taly needed access to cheap coal and steel &which they had little of/rance and ;taly needed access to cheap coal and steel &which they had little of

to $egin with+, and other industries su"ered $ecause of epensi!e raw materialsto $egin with+, and other industries su"ered $ecause of epensi!e raw materials0ermany had earlier tried to cripple /rench industry $y limiting its eports to0ermany had earlier tried to cripple /rench industry $y limiting its eports to/rance, $ut this position had to $e in!erted due to the political reality /or /rance/rance, $ut this position had to $e in!erted due to the political reality /or /ranceand ;taly, integration meant the institutionalisation and irre!ersi$ility of thisand ;taly, integration meant the institutionalisation and irre!ersi$ility of thischange 2ocal, uncompetiti!e, producers complained, $ut this was temporarilychange 2ocal, uncompetiti!e, producers complained, $ut this was temporarilyresol!ed $y the .orean Warresol!ed $y the .orean War

0ermany and the 3etherlands $oth $oasted competiti!e steel and coal sectors0ermany and the 3etherlands $oth $oasted competiti!e steel and coal sectorsand wanted to eploit this opportunity to increase sales As a conse?uence $othand wanted to eploit this opportunity to increase sales As a conse?uence $othcountries were reluctant to impro!e minerscountries were reluctant to impro!e miners wageswages

;n the U., coal and steel had >ust got nationalised $y the la$our administration,;n the U., coal and steel had >ust got nationalised $y the la$our administration,while the E%S% was a mi of pu$lic and pri!ate elements Hence the go!ernmentwhile the E%S% was a mi of pu$lic and pri!ate elements Hence the go!ernmentdecided not to >oindecided not to >oin


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What a$out politicsWhat a$out politics 9re!ention of war &less likely after the integration9re!ention of war &less likely after the integration

of coal and steel+of coal and steel+

Solution to the pro$lem of the coal5rich 0ermanSolution to the pro$lem of the coal5rich 0ermanSaarland, which was $eing go!erned under anSaarland, which was $eing go!erned under aninternational mandate &ie /rance+international mandate &ie /rance+

Solution to the issue of Alsace52orraine, whichSolution to the issue of Alsace52orraine, whichwaswasone the few /rench regions with coal and steel, yetone the few /rench regions with coal and steel, yetclaimed $y 0ermany &historically it had $een partclaimed $y 0ermany &historically it had $een partof 0ermany during long periods of time, and theof 0ermany during long periods of time, and theoriginal local dialect is $ased on 0erman+original local dialect is $ased on 0erman+


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The European =efenceThe European =efence

%ommunity%ommunity

3onetheless, another pro>ect, around the same time,3onetheless, another pro>ect, around the same time,failed- the integration of defencefailed- the integration of defence

The E=% was supposed to ha!e created a EuropeanThe E=% was supposed to ha!e created a Europeanarmy that would ha!e included a large portion of 4!earmy that would ha!e included a large portion of 4!eof the si E%S%5mem$er state armies, and all of theof the si E%S%5mem$er state armies, and all of the0erman troops0erman troops

The E=% was to $e go!erned $y a European 9oliticalThe E=% was to $e go!erned $y a European 9olitical%ommunity, of a largely intergo!ernmental nature ;ts%ommunity, of a largely intergo!ernmental nature ;tsstructure was modelled on the E%S%, with astructure was modelled on the E%S%, with a

%ommission%ommission,, %ouncil of 1inisters%ouncil of 1inisters, ad!isory, ad!isory Assem$lyAssem$lyandand %ourt of @ustice%ourt of @ustice, yet the %ouncil would ha!e, yet the %ouncil would ha!eo$tained wide !eto powers Basically,o$tained wide !eto powers Basically,supranationalism was watered down in order to getsupranationalism was watered down in order to getthe British to >oin, which ne!er happened anywaythe British to >oin, which ne!er happened anyway


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%ommunity%ommunity

What was the reasoning $ehind the E=%What was the reasoning $ehind the E=%

5 A large amount of So!iet con!entionalA large amount of So!iet con!entional

forces were amassing in Eastern Europe,forces were amassing in Eastern Europe,which was o!erstretching the Americanwhich was o!erstretching the American

capacity to defend capitalist Europecapacity to defend capitalist Europe

5 Within the framework of the E=%Within the framework of the E=%0ermany0ermanys huge potential resources coulds huge potential resources could$e directed safely towards military$e directed safely towards military

purposespurposes


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%ommunity%ommunity

/i!e of the si candidates rati4ed the proposal, until the /rench !oted it down/i!e of the si candidates rati4ed the proposal, until the /rench !oted it downin '(7)in '(7)

WhyWhy5 Unease a$out 0erman rearmamentUnease a$out 0erman rearmament5 %oncern that the /rench go!ernment would not ha!e sole control of its%oncern that the /rench go!ernment would not ha!e sole control of its

military forcesmilitary forces5 =ou$ts a$out the eCciency of an integrated force=ou$ts a$out the eCciency of an integrated force5 =is?uiet a$out the U., the largest European military power, not participating=is?uiet a$out the U., the largest European military power, not participating5 A feeling that with the end of the .orean war and the death of Stalin the E=%A feeling that with the end of the .orean war and the death of Stalin the E=%

was no longer a necessitywas no longer a necessity

5 The de$acle in /rench ;ndo5%hina, which permitted no other challenge toThe de$acle in /rench ;ndo5%hina, which permitted no other challenge to/rench so!ereignty/rench so!ereignty

5 The So!iet ac?uisition of the hydrogen $om$, and the ensuing stalemateThe So!iet ac?uisition of the hydrogen $om$, and the ensuing stalemate$etween the two $locs$etween the two $locs

9articularly the 0aullists &due to nationalism+ and the %ommunists &out of9articularly the 0aullists &due to nationalism+ and the %ommunists &out ofpro5So!iet sentiment+ were radically against the E=%pro5So!iet sentiment+ were radically against the E=%


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The EuropeanThe European

Economic %ommunityEconomic %ommunity

9articularly the Benelu5countries &Belgium, 3etherlands9articularly the Benelu5countries &Belgium, 3etherlandsand 2uem$ourg+, small and thus highly dependant onand 2uem$ourg+, small and thus highly dependant onforeign trade, wanted to progress in the economic 4eld,foreign trade, wanted to progress in the economic 4eld,and proposed an all5round European Economicand proposed an all5round European Economic

%ommunity%ommunity The structure of the E%S% would $e etended to the wholeThe structure of the E%S% would $e etended to the wholeeconomy, with a %ommission, %ouncil of 1inisters,economy, with a %ommission, %ouncil of 1inisters,Assem$ly and %ourt of @ustice Howe!er, the power of theAssem$ly and %ourt of @ustice Howe!er, the power of thesupranational %ommission would $e limited somewhat insupranational %ommission would $e limited somewhat infa!our of the intergo!ernmental %ouncil Basically, thefa!our of the intergo!ernmental %ouncil Basically, the

%ommission got an eclusi!e right to propose legislation,%ommission got an eclusi!e right to propose legislation,while the %ouncil of 1inisters would either accept orwhile the %ouncil of 1inisters would either accept orre>ect legislationre>ect legislation

What were the si participants seeking to gain from thisWhat were the si participants seeking to gain from thisagreementagreement


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Belgium52uem$ourgBelgium52uem$ourgs position was clear- three of the 4!e main eports position was clear- three of the 4!e main eportpartners would $e mem$ers, so any scheme $etween these countries wouldpartners would $e mem$ers, so any scheme $etween these countries wouldha!e to include Belgiumha!e to include Belgium

The 3etherlands were $asically in the same situation, $ut with an etremelyThe 3etherlands were $asically in the same situation, $ut with an etremelycompetiti!e agriculture, pro!iding a golden opportunity- only the =anes werecompetiti!e agriculture, pro!iding a golden opportunity- only the =anes weremore competiti!e in Europe, $ut =enmark was forced to a$stain frommore competiti!e in Europe, $ut =enmark was forced to a$stain from

participation as long as the U., their main eport market, did not >oinparticipation as long as the U., their main eport market, did not >oin 0ermany0ermanys manufacture was !ery competiti!e, and eports were sent to manys manufacture was !ery competiti!e, and eports were sent to many

di"erent destinations &although the collapse of relations with the East narroweddi"erent destinations &although the collapse of relations with the East narrowedeports to Western Europe and America+eports to Western Europe and America+

/rance/rances industry $oasted a competiti!e minority of $ig $usiness, whichs industry $oasted a competiti!e minority of $ig $usiness, whichsupported integrationD yet was marked $y an uncompetiti!e ma>ority of smallsupported integrationD yet was marked $y an uncompetiti!e ma>ority of small$usinesses, which #atly opposed integration Agriculture was !ery competiti!e$usinesses, which #atly opposed integration Agriculture was !ery competiti!ein certain high ?uality products &wine, gourmet+,in certain high ?uality products &wine, gourmet+, in relation to Westernin relation to Western

Europe, but not so in relation to the rest of the world. France thus hadEurope, but not so in relation to the rest of the world. France thus hadto reject a Free Trade Area, opting instead for an intra-Europeanto reject a Free Trade Area, opting instead for an intra-EuropeanCustoms nion.Customs nion.

;taly needed economic assistance, while hoping to $olster its policy of;taly needed economic assistance, while hoping to $olster its policy ofemigration !ia European integration- due to high unemployment manyemigration !ia European integration- due to high unemployment manyla$ourers emigrated, which sent $ack su$stantial earningsla$ourers emigrated, which sent $ack su$stantial earnings


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/rance thus set its condition-/rance thus set its condition-integration only within a Customsintegration only within a Customsnionnion 0ermany preferred a /ree Trade 0ermany preferred a /ree Trade

Area, in light of its di!erse eportArea, in light of its di!erse eportpattern, yet understood the situationpattern, yet understood the situation?uite accurately-?uite accurately- take it or lea!e ittake it or lea!e it The Theeport potential of the /rench market foreport potential of the /rench market for

0erman industry was !ery signi4cant0erman industry was !ery signi4cantindeed, which in com$ination withindeed, which in com$ination withpolitical considerations, tipped thepolitical considerations, tipped thescalesscales


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Britain con!ersely decided that a %ustoms Union was unaccepta$le &al$eit anBritain con!ersely decided that a %ustoms Union was unaccepta$le &al$eit an/TA would ha!e $een a desira$le option+-/TA would ha!e $een a desira$le option+-

5 The U. had threeThe U. had three focifoci &instead of one+- the US, the %ommonwealthFEmpire,&instead of one+- the US, the %ommonwealthFEmpire,and Western Europe &in order of declining importance+and Western Europe &in order of declining importance+

5 U. pu$lic opinion &as well as its politicians+ a$horred supranationalism, proudU. pu$lic opinion &as well as its politicians+ a$horred supranationalism, proudas it was of its long5standing independence and parliamentary tradition, itsas it was of its long5standing independence and parliamentary tradition, itsrole as a world power &although on its way out+, while attitudes towards therole as a world power &although on its way out+, while attitudes towards thecontinent were generally condescending &in light of the success of fascism andcontinent were generally condescending &in light of the success of fascism and3aGism on the continent, as well as the British !ictory in the Second World3aGism on the continent, as well as the British !ictory in the Second WorldWar+War+

5 The relati!ely competiti!e agricultural sector was also opposed, due to theThe relati!ely competiti!e agricultural sector was also opposed, due to thegenerosity of British agricultural su$sidies, which they would ha!e lostgenerosity of British agricultural su$sidies, which they would ha!e lost

5 !ost importantly, "ritain#s trade relations with the Commonwealth!ost importantly, "ritain#s trade relations with the Commonwealthwere still $ery strong, and imposing a Common E%ternal Tari& wouldwere still $ery strong, and imposing a Common E%ternal Tari& wouldthus be e%tremely harmful to e%isting trade relations 'in addition tothus be e%tremely harmful to e%isting trade relations 'in addition topsychological considerations of brotherhood(.psychological considerations of brotherhood(.

As such, European integration progressed without the U., for now, and theAs such, European integration progressed without the U., for now, and theEE% was created $y the Treaty of ome in '(7IEE% was created $y the Treaty of ome in '(7I


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/ree Trade Association/ree Trade Association

Britain thus decided to create a European /TA &E/TA+ with thoseBritain thus decided to create a European /TA &E/TA+ with thosecountries that were ecluded from European integration-countries that were ecluded from European integration-

=enmark and ;reland &for $eing dependent on the U.D ;reland did=enmark and ;reland &for $eing dependent on the U.D ;reland didnot formally >oin, $ut negotiated an /TA with E/TA+not formally >oin, $ut negotiated an /TA with E/TA+

Sweden, Austria, SwitGerland, and later /inland &for $eing neutralSweden, Austria, SwitGerland, and later /inland &for $eing neutralcountries+countries+ 9ortugal &for $eing a dictatorship+9ortugal &for $eing a dictatorship+ 3orway and ;celand &due to the opposition of the 4shery3orway and ;celand &due to the opposition of the 4shery

industry, which would ha!e to share its territorial waters withindustry, which would ha!e to share its territorial waters withother mem$er statesD nationalist sentiment was a se!ereother mem$er statesD nationalist sentiment was a se!ereo$stacle in these countries as well, as it was in Sweden, /inlando$stacle in these countries as well, as it was in Sweden, /inland

and SwitGerlandD 3orwayand SwitGerlandD 3orways oil permitted it a lot of leeway+s oil permitted it a lot of leeway+

Britain was hoping that the coeistence of the EE% and the newlyBritain was hoping that the coeistence of the EE% and the newlyformed E/TA would force a merger $etween the two $locsformed E/TA would force a merger $etween the two $locs


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/ree Trade Association/ree Trade Association

BritainJs circumstances were changing rapidly, though-BritainJs circumstances were changing rapidly, though- With the collapse of its empire shortly after the end of the Second World War,With the collapse of its empire shortly after the end of the Second World War,

the U.the U.s status as a world power was !irtually o$literateds status as a world power was !irtually o$literated

As such, the US5U. relationship weakened, as the former started to negotiateAs such, the US5U. relationship weakened, as the former started to negotiate$ilaterally with the USS$ilaterally with the USS

European agricultural su$sidies were increasing rapidly &more a$out thisEuropean agricultural su$sidies were increasing rapidly &more a$out thislater+later+

!ore importantly, with the loss of its colonies and the increasing!ore importantly, with the loss of its colonies and the increasingeconomic disinterest with which the latter started to $iew theeconomic disinterest with which the latter started to $iew themotherland, the role of the Commonwealth within "ritish e%portsmotherland, the role of the Commonwealth within "ritish e%portsdeclined accordingly. This clearly necessitated a geographicallydeclined accordingly. This clearly necessitated a geographicallycloser alternati$e, yet industrial e%ports to the booming continentcloser alternati$e, yet industrial e%ports to the booming continent

were discriminated by high tari&s.were discriminated by high tari&s.

These changes cancelled many of the underlying reasons that had pushedThese changes cancelled many of the underlying reasons that had pushedBritain into creating E/TA, leading to a series of British attempts to enter theBritain into creating E/TA, leading to a series of British attempts to enter theEE%EE%


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Europe - Historical Background

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