Need
Need for reconstruction had forced European leaders to work together with maximum possible cooperation. The world war 2 had struck Europe badly many had died and a lot more were injured. In order to avoid economic crisis faced after the 1st world war cooperation was the only way.
Factors responsible for the European unity and evolution of the European Community
- Bitter experience of post world war and developments was also responsible for beginning of the process of unification. After the 1st world war European nations followed the policy of protectionism which further intensified the crises. They were hence, not willing to commit the same mistake twice.
- Need to curb the spirit of nationalism was an emergent necessity after the Second World War, as it was responsible for war. European nations wanted to create a Supra National Institution to develop one European identity and curb nationalistic fervour.
- French quest for security was important in unification, as after the First World War France followed a policy of aggression against Germany which led to the 2nd war. Therefore France was now in favour of a conciliatory approach.
- German desire to avoid isolation in Europe had persuaded the German leadership to support every initiative towards unification.
- Fear of communism was essential in pushing Europe towards unification. USSR had by now emerged as a super power, with Stalin following an expansionist policy there was an environment of uncertainty. Individual European countries were not strong enough to withstand pressure of USSR and communism, therefore they decided to come together.
- Desire of European leaders to ensure European supremacy in international affairs brought them together in a common platform in a world which was now dominated by 2 superpowers - USA and USSR. It was now impossible for individual European nations to have influence in world affairs so they emerged as a grouping.
- Winston Churchill was one of the strongest advocates of a united Europe.
- In March 1943 he spoke of the need for a Council of Europe.
- In a speech in Zurich in 1946 he suggested that France and West Germany should take the lead in setting up 'a kind of United States of Europe'.
European Community:
- European Economic Community (EEC) or the Common Market officially set up under the Treaty of Rome (1957), six founder members:
- France
- West Germany
- Italy,
- Netherlands,
- Belgium,
- Luxembourg.
Steps towards unification
- 1944- Belgium, Netherlands and Luxembourg discussed the need to create a customs union for rapid reconstruction after the war because
- They were under German occupation during war and by 1944 German forces had started retreating
- 1947 BeNeLux Customs Union was created in which there would be no tariffs or other customs border, so that trade could flow freely.
- 17th March 1948 Brussels defence treaty by Belgium, Netherlands and Luxembourg along with Britain and France to create a military alliance to face any possible threat of soviet expansionism. This was based on the principle of collective sovereignty.
- April 1949 the defence treaty converted to NATO - North Atlantic treaty organisation when USA, Canada, Portugal, Norway, Ireland, Italy and Denmark joined it. USA became the head of this military alliance.
- 1951- European Coal and Steel community was established. It was a limited Customs union providing for free movement of coal, steel and iron among member nations- Belgium, Netherlands, Luxembourg, France, Italy, Germany. French foreign minister Robert Schemen played an important role in its creation. Britain refused to join it arguing such a membership would undermine independence of British industries.
- Treaty of Paris (formally the Treaty establishing the European Coal and Steel Community) signed on 18 April 1951.
- All duties and restrictions on trade in coal, iron and steel between the six were removed, and a High Authority was created to run the community and to organize a joint programme of expansion
- Achievements and failures of ECSC:
- Trade between members increased which saved members' money by not having to import resources from the United States.
- The High Authority also issued modernization loans to the industry which helped the industry to improve output and reduce costs. Costs were further reduced by the abolition of tariffs at borders
- Over 15 years it financed 112,500 flats for workers,enabling them to buy a home they could not have otherwise afforded.
- It also paid occupational and deployment cost of those workers who have lost their jobs as coal and steel facilities began to close down
- introduced European peace.
- Limitations
- It was hoped the ECSC would prevent a resurgence of large coal and steel groups such as the Konzerne, which helped Adolf Hitler rise to power. In the Cold War trade-offs, the cartels and major companies re- emerged, leading to apparent price fixing (another element that was meant to be tackled).
- couldn’t ensure an upward equalisation of pay of workers within the market
- The initial success of ECSC led to the desire to create more, but attempts at creating a European Defence Community and a European Political Community failed leading to a return to economic matters. In 1957, the EAEC and EEC were created by the Treaties of Rome.
- ECSC was such an outstanding success, even without Britain (steel production rose by almost 50 per cent during the first five years), that the six decided to extend it to include production of all goods.
- 1958- European Economic Community was created under Treaty of Rome by Belgium, Netherlands, Luxembourg, France, Italy and west Germany. Britain refused to join EEC. The member nations removed tariff barriers on the movement of coal, goods and services. EEC had 4 major organs-
- European commission
- European council of ministers
- European Parliament
- European court of justice
- The treaty also mentioned:
- improving living and working conditions,
- Expanding industry,
- encouraging the development of the world's backward areas,
- safeguarding peace and liberty,and
- working for a closer union of European peoples.
- EURATOM- European Atomic Energy Commission affiliated with institution of atomic energy was established.
- The six countries gradually removed all customs duties and quotas so that there would be free competition and a common market. Tariffs were kept against non- members, but even these were reduced.
- It provided for a common agricultural policy,1962 to protect EEC farmers from agricultural imports.
- 1967 EEC, ECSC & EURATOM were merged to establish European community
- 1973 Britain, Denmark and Ireland joined the European community.
- 1979 a system of direct elections was adopted for members of European Parliament
- 1981 Greece joined. Followed by Spain and Portugal in 1986.
- 1991 Maastricht Treaty was signed providing for greater cooperation among member nations. The European community was now named as European Union. This treaty came to force in November 1993.
- 1995 Austria, Finland and Sweden joined.
- 1999- Euro was adopted as common currency which circulated in January 2002. Britain, Sweden and Denmark decided to remain out of this common currency.
- 2004 witnessed biggest expansion in EU when 10 European countries joined it - Cyprus, Czech Republic, Slovenia, Slovakia, Malta, Poland, Hungary, Lithuania, Latvia and Estonia. Romania and Bulgaria joined in 2007. In July 2013 Croatia became its last member.
- 2016 Britain initiated its will to get out of the European Union which has finally happened in 2020 marking exit of Britain BREXIT from European Union.
Challenges Faced by European Union
- Economic crisis of the PIGS nations - Portugal, Spain, Greece, Italy which are facing severe debt crisis. These countries had taken huge amount of loans from IMF and other European institutions for providing a decent standard of living to its people. However they have regularly deferred on the required payment.
- Economic polarisation in the European Union in favour of big economies like Germany, France etc. the rise of Germany created imbalance in EU as rise of German industries marked decline of other European industries.
- Migrant Crisis faced by EU as a result of increased number of migrants from Asia and Africa has over the years become an enormous crises. Many European nations took anti migrant measures.
- Refugee crises because of ongoing struggle in Middle East has pushed a large number of people from Syria, Palestine etc towards European countries. This has led to further humanitarian, economic and political crises.
- Populist measures by some European leaders has pushed European countries towards a slippery slope making economic revival more difficult. Further rise of radical leaders has enhanced nationalist and extremists in countries. EU faces significant leadership crises with absence of dominant leaders who could provide it a direction.
- BREXIT has emerged as a biggest challenge in recent times. British withdrawal marks a new form of challenges in economic and political sphere for EU. It would have to reintegrate its objectives. Further it has raised questions among other nations regarding feasibility of a union like EU. The brexit process had been successful after fall of 2 governments in Britain.