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History of European Integration
Слайд 5The construction of post-war Europe (1)
The historical roots of the
European Union lie in the Second World War. By 1945,
when Germany surrended, economies of European countries had been destroyed and millions of people had been killed
Idea of European integration was to prevent wars in Europe
Слайд 6The construction of post-war Europe (2)
The aim was to secure
peace among Europe’s victorious and vanquished nations and bring them
together as equals, cooperating with shared institutions
It was thought that merging of economic interests would help reconciliation among European nations and to build united and peaceful Europe.
Слайд 7Schuman’s Declaration of 1950
European integration first proposed by the
French Foreign Minister Robert Schuman in a speech on May
9, 1950. This day, the „birthday” of what is now the EU, is celebrated annualy as Europe Day.
European integration seen as a long-term and step by step process. Schuman stated: "Europe will not be made all at once, or according to a single plan. It will be built through concrete achievements which first create a de facto solidarity.„
Слайд 8
Post-war reconstrution and restoration of heavy industry in
Germany and elsewhere needed to be restored, that it would
not, as in the past, encourage military production and conflict.
Schuman stated: "The pooling of coal and steel production... will change the destinies of those regions which have long been devoted to the manufacture of munitions of war, of which they have been the most constant victims”.
Слайд 9East – West division of Europe
Post-war division of Germany (1945
-1990)
At that time key issue for Western Europe were
relations of West Germany with France and rest of Europe.
Eastern part of Europe was under Soviet domination. Division of Europe become a fact
The 1950s are dominated by a Cold War between east and west of the European continent
Слайд 11Division of Europe (1945 – 1989)
The political borders of Eastern
Europe defined by the Cold War from the end of
World War II to 1989. The Iron Curtain separated the members of the Warsaw Pact (in red) from the European members of NATO (in blue).
Gray indicates neutral
countries.
Слайд 12WHY EUROPEAN COOPERATION and INTEGRATION?
Wish to avoid a repeat of
governmental failures culminated in two World Wars in the 20th
century and expansionist nationalism (Nazi Germany)
Economic devastation caused by wartime destruction.
Emergence of two superpowers, the USA and the Soviet Union with competing economic and political ideologies.
Division of Europe (East and West) and the need for security from Soviet threat.
Need for rapid economic development to establish political stability and long-lasting peace and security.
Слайд 131945-1959 – the beginnings of (West) European cooperation
Слайд 14Post-war reconstruction. Marshall Plan
1945 – 1957 Difficult years of post-war
reconstruction of Europe
1948- 1952 the Marshall Plan - the American
initiative to aid Europe. The goals of the US were to rebuild war-devastated regions, remove trade barriers, modernize industry, and contribute to social and political stability. The European countries were encouraged to colaborate with each other.
Слайд 16European Coal and Steel Community
In 1951 six countries (Frence, Germany,
Italy, the Netherlands, Luxemburg and Belgium ) sign a treaty
which entered into force in 1952 to run their heavy industries - coal and steel under a common management.
Nascent political integration through sectorial integration to avoid another French-German conflict.
The ECSC was the first step of building supranational European institutions that would ultimately become today's "European Union".
Flag of the European Coal and
Steel Community
Слайд 17Economic integration shaped by political and economic interests
Idea of a
creation of European Coal and Steel Community was an explicitly
political proposal but followed a functional approach of economic integration with wider political objectives.
Over time economic integration in Europe and elsewhere has been shaped mostly by economic considerations
Слайд 181957 – Europe makes an important step forward…
In 1957 six
countries decided to expand their co-operation: create a custom union
and promote co-operation in nuclear energy sphere.
Along with ECSC two institutions have been established:EURATOM and European Economic Community (EEC).
Слайд 19
European Coal EURATOM
European Economic
and Steel
Community
Community
1957
Слайд 20Treaty of Rome 1957 – European Economic Community (EEC)
Слайд 21What „EU TREATIES” mean
The European Economic Community (later changed the
name to the European Union) is based on the rule
of law.
Every action taken by the EU is founded on treaties that have been approved voluntarily and democratically by all member states.
Treaties - like Treaty of Rome - set out EU objectives, rules for EU institutions and
how decisions are made.
Слайд 22European Economic Community
1957 - European Economic Community (EEC) later renamed
as the European Community and is an ancestor of the
modern European Union
It became the most important of all three organizations of European integration (EEC,ECSC,EUROATOM)
Gradual and difficult liberalisation of trade among six countries but the protectionist measures at national level still high… Elimination of tariffs achieved after ten years in 1968
Слайд 231960-1969 – A period of growth and deepening of integration
Слайд 24Importance of French-German Reconciliation for European Integration
The post-war Franco-German cooperation
is based on the Élysée Treaty, which was signed by
Charles de Gaulle and Konrad Adenauer on January 22, 1963.
President De Gaulle–Chancellor Adenauer Chancellor Merkel –
President Hollande
Слайд 25Common Agricultural Policy (1)
The first important accomplishment of the EEC/EU
was the establishment of the Common Agricultural Policy - CAP
in 1962.
Three major principles had been the CAP:
market unity (high common price levels)
community preference (high level of tariff protection against producers from other countries)
financial solidarity (common budget financed by all members not just by main agricultural producers).
Слайд 26Common Agricultural Policy (2)
The CAP had been the result of
a political compromise between France and Germany. German industry products
would have access to the French market if in exchange, Germany would help pay for France's farmers.
Goal of CAP: food self-sufficiency of Western Europe
Problems to come later: over-production and high cost of CAP for the European taxpayers
Слайд 27 Customs Union (1968)
Removal of custom duties on goods
imported from member states. Applying common external tariff on imports
from outside countries.
The world’s biggest trading group is born.
Trade among the six and between the EU and the rest of the world grows rapidly.
By 1968, the EEC was a duty-free zone but intra-community trade was far from free due to the existence of non-tariff barriers to trade.
Слайд 28„Economic miracle” of 1960s
High economic growth in the EU, in
particular in Germany („German economic miracle” – late 1050s and
in 1960s)
Liberalization of trade inside the EEC (Customs Union) and multilateral agreement on cutting by half tariffs on industrial products among GATT/WTO countries (Kennedy Round) contributed to economic growth in Western Europe
Слайд 29„Economic miracle” of 1950s/1960s
VW assembly line
Слайд 30„Guest Workers”
By the early 1960s, migration to Western Europe increased
significantly from Turkey when Turkish "guest workers" arrived under a
"Labour Export Agreement" with Germany, followed by a similar agreement with the Netherlands, Belgium and Austria,France and Sweden.
Many guest workes (gast-arbeiters) comming to the EU also from other non-EEC countries like Spain, Portugal, Jugoslavia and countries of North of Africa).
Foreign workers contributed significantly to Europe’s economic growth in the 1960s and later
Слайд 32Sixties – years of new domestic and international challenges
Huge flow
of American direct investments into Europe (to have easier access
to European markets inside the customs union)
Sentiments, in particular in France, that Europe
is becoming merely „an economic colony of the
United States”
East – West tensions in Europe. Soviet invasion on Czechoslovakia in 1968
Слайд 331960s -Widening the generation gap…
„Beatlemania” sweeps the world in 1963.
The Beatles attract a huge crowds of young people and
stimulate widening the generation gap
May 1968 – student riots in France shaking stability of the French Republic. Milder students protests occur in other EU countries
Слайд 341970-1979
Energy crisis followed by economic problems.
A growing
Community – the first Enlargement
Evolution of East-West relations
Слайд 35France blocking UK entry to the UE in 1960s
Suspicious of
UK entry, President De Gaulle of France vetoed twice (1963,
and 1967) the British requests for membership for fear that this would dilute the EEC into a free trade area and make it subservient to American foreign policy interests.
Слайд 36British, Irish and Danish entry to EEC in 1973
Only after
President De Gaulle departure from his post, new French President
Pompidou allowed UK to join as a counterweight to Germany’s growing political and economic influance in the Community
Слайд 37The first EU Enlargement (1973)
1 January 1973
The six become nine
when Denmark, Ireland and the United Kingdom enter the EU.
Member
States Member States: Germany, France, Italy, the Netherlands, Belgium and Luxembourg. New Member States New Member States: Denmark, Ireland and the United Kingdom.
Слайд 38 UK and EEC
Merits of entry for UK:
special Anglo-American
relationship was becoming less important
UK risked political isolation by
remaining outside the EEC
Rapid growth in the EEC market vital for UK producers
Слайд 39In the seventies: the energy crisis and recession
Following an Arab-Israeli
war in October 1973, Middle East oil-producing nations impose big
price increases and restrict sales to certain European countries.
„Oil shock” creates severe economic problems throughout the EU. Long-lasting recession in Europe.
Слайд 40Oil crises makes European currences unstable
Perturbations in the international
financial system. European currencies unstable.
French Franc devaluation and the strength
of German Mark-threatening the economic balance of power between the two “core” countries of the EU
Слайд 41Oil crisis and stagflation
The crisis led to stagnant economic growth
in many countries as oil prices climbed.
The combination of
stagnant growth and price inflation during this era led to the coinage of the term stagflation (stagnation plus high inflation).
Слайд 42Oil crisis
The gasoline shortages after the II WW…
Слайд 43Oil crisis
The gasoline shortages in 1973….
Слайд 44A bit of progress…
1974
To show their solidarity, EU leaders set
up the European Regional Development Fund. Its purpose is to
transfer money from rich to poor regions to improve roads and communications, attract investment and create jobs. This type of activity later comes to account for one third of all EU spending.
1979
EU citizens directly elect the members of the European Parliament for the first time.
Слайд 45Political developments in the 70s
Established European Political Coordination 1970 on
foreign policy. EU goes beyond economic issues and starts debates
on international politics
Détente in East-West relations (Helsinki Security Conference 1975)
Ostpolitik” of German Chancellor Willy Brandt create closer ties between West and East Germany and improve relations with Poland and the Soviet Union.
The overthrow of the Salazar dictatorial regime in Portugal in 1974 and the death of Gen.Franco in Spain in 1975. End of military dictatorship in Greece
Слайд 46 „Eurosclerosis”
„Eurosclerosis" was used to
describe a post-1973 prolonged
recession till mid-80s
The slow pace of enlargement,
seriousproblems of
European
economies causedthat negative
and apathetic attitudesto the
European Economic Community
(EEC) were high.
Слайд 47Difficult decade 1973 - 1983
„Euro-pessimism” due to:
failure of monetary integration,
and
failure of deeper trade integration.
Major differences in economic performances
and policies and general level of stagnation, failure to develop a common energy policy towards Arab countries and failure to develop common set of economic policies to deal with the stagflation which wrecked the possibility of a common monetary union by 1980 despite
the projection of the Werner Report (1970).
Слайд 48Resurgence of protectionism
In 1970s: resurgence of European protectionism. It took
the form of non-tariff barriers mostly directed against Japan and
newly industrialized countries (NIC), especially in agriculture and textiles.
Government aid, and technical barriers were key elements of this new tide of protectionism due to strong social resistance to economic adjustment.
“Creation of national champions”
protected by government aid.
Слайд 49Fundamental changes in Europe ahead...
Decade of 1980s started with
dramatic events in Poland when shipyard workers in Gdańsk went
on strike. Solidarity (Solidarność) movement, an independent trade movement, had been crushed one year later with imposition of martial law in December 1981. But the seeds have been sown for later – in Poland and in the rest of Europe.
Слайд 50Greece, Spain and Portugal join EU
New EU members:
Greece 1981
Spain and Portugal 1986
European Union – 12 members
In 1987 Turkey formally applied to join the Community and began the longest application process for any country.
Слайд 51Importance of the Iberic enlargement
The Iberian enlargement (Spain and Portugal)
strengthened Europe’s strategic position in the Mediterranean and Latin America,
and led to the further development of a European cohesion policy (EU founds for development of less developed countries and regions).
Spain and Portugal offered a new geo-political dimension to the Union, strengthening it southwards (Northwest Africa – Maghreb countries) and in Latin America.
Слайд 52We will continue….
We will continue at our next lecture
Thank you
for your attention