Chapter 30 Contemporary Europe End of Dictatorship in Greece • Army officers overthrow parliamentary system and the monarchy in 1967 • Democracy restored in 1973 • Became member of European Community in 1981 End of Dictatorship in Portugal Salazar regime • Opposition grew in colonies; Guinea, Angola and Mozambique • Portugal used violent force to maintain its empire • Condemned by UN, African nations and European nations • Army seized power in 1974 • Promised civil rights for Portugal, self determination for colonies • Portugal joined European Community in 1986 End of Dictatorship in Spain • Franco called Juan Carlos, grandson of Spain’s last King, to take empty throne 1969 • Franco retired in 1973 • Juan Carlos increased freedom of speech, encouraged democracy • New Constitution in 1978 • Attempted military coup failed • Became member of European Community in 1986 Western Europe Energy Crises • Oil producing (OPEC) nations banded together to raise oil prices in 1973 • Europe relied on imported oil from Middle East • Western Nations began to look for domestic sources of energy • Oil discoveries in North Sea mad Norway self sufficient, and Britain nearly so • Nuclear Power plants sprang up all over Europe, especially France • Greens protested Nuclear power, especially after Chernobyl Western Europe Stagflation • High cost of energy increased inflationary pressure • Inflation rates of 20-30% in Britain, Italy and Portugal in 1975-76 • Undermined planning, savings and trade • Stagflation-high inflation and stagnant economies • Increased unemployment • Competition from Japan • Expensive social programs and little support for higher taxes left governments little room to maneuver Great Britain Post WWII • Labour Party • Cradle to grave social welfare programs - Benefits for sick, unemployed, retired - National Health Service (NHS) • Nationalized Bank of England, the railroads, electric, iron and steel industries - Many of these industries were under gov’t control during war Great Britain Post WWII • Debt to U.S. • Gold and currency reserves depleted fighting the war • Large military spending due to Cold War, overseas commitments • “Age of Austerity” • Wartime rationing of butter and sugar lasted until 1954 Great Britain • Exhausted by slow pace of change • Conservative won elections in 1951 • Continued nationalization, social programs of Labour Party • “Politics of Consensus” Great Britain Economic Decline • Great Britain did not achieve the “economic miracle” of postwar Germany and Italy • Reliance on older factories • Lack of central economic planning • Aggressive unions fought for higher wages without increasing production Great Britain • Margaret Thatcher (Conservative) became first female Prime Minster in 1979 • Break with “failed policies of the past” Thatcherism: • tight control of the money supply to reduce inflation • Sharp cuts in public spending • Cut in taxes • Reduce power of trade unions • Selling off of many nationalized industries Great Britain Falkland War 1982 • War with Argentina over Falkland Islands • Revived Thatcher's popularity • Retired in 1990 Great Britain • Labour Party returned to power in 1994 • Tony Blair elected “New Labour” • Moved party away from its socialist roots • Did not renationalize economy • Focused on improved Social Services, reforming the House of Lords • Regional power to Wales and Scotland • resigned in 2007 after his support was reduced over backing the U.S. in the Iraq War France • Charles De Gaulle dominated life in postwar France Fourth Republic • Granted right to vote to women • Series of colonial wars in Indochina and Algeria France • Conflict in Algeria led to fear of a military coup • Plebiscite held for new Constitution in 1958 Fifth Republic • More powerful presidency, held by De Gualle • Wanted to restore France’s presences on the world stage - Vetoed Britain's entry into Common Market in 1962 - Withdrew from NATO in 1966 - Refused to sign Nuclear Test Ban Treaty - Developed hydrogen bomb in 1968 France Economic Struggles • 1945- 5 million men returned home from Germany that needed jobs • Transportation system in shambles • Limited supplies of coal and food France Monnet Plan 1947 • CGP established, nonpolitical technocrats to run economy • Increased foreign investment and central planning helped French economy grow rapidly France • As France became more prosperous, there was a sense they were losing their unique way of life • Resistance to “Americanization” - Coca Cola banned in 1950 France 1968 Revolutions • Students united with workers • Demanded education reforms and wage increases • De Gaulle survived crises, resigned in 1969 France • Members of De Gaulle’s party held power until 1981 • Socialist Francois Mitterrand elected • Social reforms and reducing unemployment • Did not radically socialize France • Retired in 1995 France Replaced by Gaullist Jacques Chirac • Platform of healing social ills (racism and labor strikes), tax cuts and job programs • Social unrest and corruption • Racial rioting Conservative Nicolas Sarkozy elected in 2007 • Plan to control immigration and modernize economy Italy Postwar • Italian monarchy was associated with the fascist • In 1946 a republic was established “Economic Miracle” • Role of the state • Institute for Industrial Reconstruction (IRI) created under Mussolini • Controlled shipbuilding, airlines, metallurgy and chemical industry Italy • Benefited from membership in common market • Cheap labor from Southern Italy “Southern Question” • Reduce economic gap between north and south • Land reform • Investment, five year plans • Significant economic gap remains Italy Problems • Political terrorism - “red brigade” • Organized Crime - Mafia • Corruption Germany • Divided postwar • Berlin Airlift 1949 • West Germany became a democracy, East Germany ruled by Communist dictatorship 1949 • West Germany joined NATO, East Germany the Warsaw Pact • Berlin Wall built in1961 West Germany Politics • Christian Democratic Union (CDU) • Led by Chancellor Konrad Adenuer 1949-1963 • Gerhard Ritter, Minister of Economics, became Chancellor after Adenuer’s retirement West Germany “Economic Miracle” • Influx of millions of Germans who had fled from Poland Czechoslovakia and East Germany • Marshall Plan investment • GNP grew from $23 billion in 1950 to $103 billion in 1964 • Increased wages and higher productivity for workers West Germany • Willy Brandt charismatic leader of the Social Democrats, became Chancellor in 1969 • First socialist leader since 1930 Ostpolitik • Signed treaties with USSR, Poland and Czechoslovakia • Visited Poland, monument to those who died at Warsaw Ghetto • Recognized East Germany • Won Nobel Peace Prize in 1972 • Resigned after a one of his aides was found to be an East German spy Germany • Helmut Kohl (CDU) became prime minister in 1982 Reunification • Germany reunited in 1990 after fall of Berlin wall • West Germany unprepared • Economic strains integrating East Germany into market economy • Weak east German currency exchanged one to one basis with strong currency of West Germany • West Germany invested heavily to modernize the economy and infrastructure of East Germany • After reunification, Germany faced high unemployment Germany • 1998, Social Democrat Gerhard Schroder elected Prime Minister • Faced high unemployment • Dismantled many social programs • Gained popularity for opposing U.S. war in Iraq Germany • In 2005, conservative Angela Merkel (CDU) became first female chancellor of Germany • Germany economy grew rapidly • High approval ratings