Contemporary EuropeThe Evolution of the EU:

1950s to presentPART I

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Serious efforts to encourage integration: Second WW

Economic reconstruction, security in the face of Cold war tensions, efforts to prevent European nationalism spilling into conflict

Traditional hostility between France and Germany

Cooperation thought to provide the foundations for broader EU integration

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A modest step in 1949, creation of the Council of Europe

May 9th 1950, French Foreign Minister, Robert Shuman announces a plan for Europe’s coal and steel industries

The ECSC in 1952 (6 member states)

1958, creation of the EEC (European Economic Community)

Ambitious set of goals: development of a single market, common policies on agriculture, competition, trade and transport

Other Countries apply for membership

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1st Enlargement: 1973 (Britain, Denmark and Ireland)

2nd Enlargement: 1980s (Greece, Portugal, and Spain)

1995: Austria, Finland and Sweden

Single Market boosted up with the Single European Act in 1986: 5 year deadline for removal of remaining barriers

Progress on monetary union, with the 1999 launch of the euro (12 national currencies replaced)

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Focus of enlargement shifts eastward: 12 new Eastern European countries join in 2004-2007, 2013 Croatia (28 members and more than 500 million citizens)

Iceland, Macedonia, Montenegro and Turkey

Progress on developing common policies on a wide range of issues

Disappointment over EU’s role in foreign and security policy, and EU constitution draft in 2005 (France and Netherland negativity)

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New Treaty of Lisbon: most content of the drafted Constitutional Treaty: make EU more efficient

Global Economic downturn of 2007-2010: new problems to the mix

Remaining economic weaknesses and vulnerabilities of Europe emphasized, the Euro’s performance tested

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WWII: more than 40 million dead plus widespread devastation, agricultural production halved, food rationed, communications disrupted

Beginning of the end of European Empires: emergence of the US and SU as superpowers

Europe’s reconstruction needed substantial capital, readiest source: US: Large Investment through the Marshall’s plan

The Idea of EuropePostwar Europe

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Second postwar priority: security from threats, internal and external

Winston Churchill warns of the Iron Curtain in 1946, 1948 Britain, France and Benelux form a Western Union (military cooperation)

1949, North Atlantic Treaty Organization created

July 1956 Egyptian president Gamal Abdel Nasser nationalized the Suez Canal (owned by France and Britain)

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France and Britain conspire with Israel to launch invasion of the canal

US divided between Egypt and Hungary

UN Security Council, prompted by the US, ostracizes Britain and France

Britain and France no longer world powers, sign a programme of decolonization, Britain looks up to Europe for its interests, West Europeans recognize US as dominant party in the Atlantic Alliance

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Major obstacles to peace?

Economic Reconstruction and military security critical to the future of the region

Churchill feels new entity should be based around France and Germany and not necessarily include Britain

The Congress of Europe held in 1948 agreed the creation of Council of Europe later founded in 1949 in London’s signing

The Idea of Europe1st steps towards integration

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The Council nothing more than a loose intergovernmental organization, not what European Federalists wanted

French entrepreneur and bureaucrat, Jean Monnet and Robert Schuman not satisfied with Council of Europe, set to resolve the perennial problem of Franco-German relations

By 1950s, everyone felt West Germany needed to be rebuilt to play a greater role in Western alliance

Monnet thought integrating coal and steel would make WG reliant on trade with the rest of Europe

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Monnet proposes new Institution independent of national gov’ts: supranational than intergovernmental

May 9th 1950, plan announced by Schuman

The Schuman Declaration envisages unification of Europe in a step by step process

French and German coal and steel production placed under a common “High Authority, within the framework of an organization open to the participation of the other countries of Europe” and thus war be “not merely unthinkable but materially impossible

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Only 4 accept: Italy (respectability and econ. & polit. stability), and the Benelux countries (heavily reliant on exports, ensure security by being a part of bigger regional unit)

Britain had extensive interests outside Europe, exported little of its steel to the continent, Labor Gov’t nationalizes coal and steel, did not like the supranational character

Ireland heavily agricultural and dependent on Britain

Denmark and Norway’s memories of German occupation too fresh

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Austria, Finland and Sweden: protect neutrality

Portugal and Spain: dictatorship with little interest in int’l cooperation

Easter Europe: Out of the question?

Treaty of Paris in April 1951 creates the ECSC

ECSC managed by nine member High Authority with its first president?

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Decisions taken by a six member Special Council of Ministers

78-member Common Assembly helps allay the fears of nat’l Gov’ts regarding surrender of powers

Disputes to be settled by seven-member Court of Justice

ECSC: limited goals and powers, but notable for ?

Allowed to reduce tariff barriers, abolish subsidies, fix prices, and raise money by imposing levies on steel and coal production

Failed its goals, but proved the feasibility of integration

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European integration moves ahead ambitiously

June 1955 in Italy, ECSC foreign ministers agree to adopt proposal “to work for the establishment of a united Europe by the development of common institutions, the progressive fusion of nat’l economies, the creation of a common market, and progressive harmoiztion of policies”

Two Treaties of Rome signed in March 1957: one creating the EEC and the other the European Atomic Energy Community (Euratom)

The Idea of EuropeThe European Economic Community 1955-86

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The EEC had similar administrative structure to the ECSC with appointed Commission, a Council of Ministers with powers over decision making, and a Court of Justice

New 142-member Parliamentary Assembly created to cover the EEC, ECSC and Euratom, renamed to European Parliament in 1962

The EEC Treaty committed the 6 Six to the creation of a common market within 12 years: removing all restrictions on the internal movement of people, money and services, setting of a common external tariff for goods coming into the EEC, development of common agricultural, trade and transport policies

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Creation of the European Social Fund and European Investment Bank

Action taken where there was agreement, disagreements set aside for future discussion

Euratom aimed to create common market for atomic energy, but only France interested thus Euratom focused primarily on research

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The early years of the EEC seen in the light of int’l developments: threats posed by Soviets were clear, WE rely on security guarantees by the US, differences of opinion within the Atlantic Alliance (e.g. Korean war, Cuban missile crisis, conflict in Vietnam)

Amidst these changes in Int’l Affairs, EEC realizes that it needs to expand if its effects were to reach beyond the exclusive club of 6

Any state, allowed to join under the terms of the Treaty of Rome

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Non-members had mixed feeling about the EEC, Britain nostalgic of its world power, however, influence in Europe lays with the EEC and risks isolation if it stays out

EEC made substantial econ. & polit. progress thus Britain wanted access to the rich market

August 1961, Britain applies for EEC membership along with Denmark and Ireland, joined in 1962 by Norway

Denmark’s motive was agricultural, producing 3 times more food than it needed, also considers boosting its industries

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Norway realizes the importance of the EEC market

Ireland sees membership as way of furthering industrial plans and reducing agricultural dependence on Britain

Austria, Sweden, and Switzerland apply for associate membership followed in 1962 by Malta, Portugal and Spain

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Negotiations between Britain and the EEC open in 1962, however, President Charles de Gaulle aborts as he sees Britain rival to French influence within the EEC, resents for earlier indifference towards integration, also feels US will have too much influence in Europe

January 1963, vetoes British membership (Denmark, Ireland and Norway)

Britain reapplies in 1967

Gaulle resigns in 1969 and Britain applies and gets accepted

January 1973, Britain, Denmark and Ireland join the EEC

Norway fails in public referendum

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Enlargement in 1980s pushes EEC borders further south and west

Greece previously turned down in 1950s due to its weak economy, given associate membership in 1961, Greek Military coup of 1967, applies in 1974 and joins in January 1981

1975, possibility for Spain and Portugal for EEC membership real, however, despite concern over fishing rights and workers moving north EEC felt membership would encourage democracy in the Iberian peninsula and link the two to NATO and WE

January 1986, the 10 became the 12

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Doubling of the members has serious consequences:

- increases global influence

- changes the dynamic of the Community’s decision making

- reduces overall influence of France and Germany

- alters the relations with the US and developing countries

- alters its internal economic balance ?

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Rather than enlarging further, the EEC now concentrates on deepening relations amongst the 12

1987 – Turkey

1989 – Austria

1990 – Cyprus and Malta

East Germany enters through the back door ? October 1990

No enlargement till 1995

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By 1986, the EEC had become known as the EC, members combined to 322 million and accounted for just over 1/5 of world trade

The EC: own administrative infrastructure & independent body of law, its citizens had direct, but limited, representation through the Parliament

Progress towards integration remains uneven: decision taken by Gov’tal leaders and technocrats, ordinary Europeans indifferent

Customs Union in place, but different nat’l technical, health and quality standards and varying levels of indirect taxations prove to be a handicap for the common market

The Idea of EuropeEconomic and Social Integration 1972-92

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It was clear that true single market required a common European currency

Controversial due to loss of national sovereignty and move towards political union

EC leaders respond with the creation of the European Monetary System and the signature of the Single European Act

Need to encourage stable exchange rates: a priority

Leaders divided whether economic or monetary Union should come 1st

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Community Leaders discuss possible economic and monetary union (EMU) in 1969

1979 new initiative launched: the European Monetary System (EMS)

EMS designed to control fluctuations in exchange rates

EMU back on track by the 1994

Meanwhile, concern that progress was handicapped by inflation and unemployment led the National Gov’ts to protect home industries with subsidies (non-tariff barriers)

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Economic competition from US and Japan

February 1986 in Luxembourg, Single European Act was signed, the 1st major change since the Treaty of Rome

Came into force in July 1987: complete all requirements of the single market market by 31st December 1992

300 new pieces of legislation, removal of all physical barriers (customs and passports checks), fiscal barriers (indirect taxation), and technical barriers (conflicting standards, laws and qualifications)

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The SEA aimed to create “an area without internal frontiers in which the free movement of goods, persons, services and capital is assured”

The effects of the SEA were profound:

- it created the single biggest market in the World, monopolies broken down

- gave community Institutions responsibility over new policy areas such as the environment, R&D, and regional policy

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- the SEA gave new powers to the European Court of Justice, created the Court of First Instance to hear certain kinds of cases

- gave legal status to meetings of heads of governments under the European Council, new powers to the Council of Ministers and the Parliament

- Legal status to European Political Cooperation (foreign policy coordination), work more closely on defense and security

- Economic and monetary union made an EC objective and promoted “cohesion”?

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Despite the SEA, opening borders’ progress was variable, no common policy on immigration, visa and asylum

1985, Benelux, France and Germany signed the Schengen Agreement: removing all border controls

Although not all EC countries signed the agreement, it marked a substantial step towards the removal of border controls

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