European Integration
Debate on the need for European integration goes back several
centuries. However, it was as a result of the Second World War and its
aftermath that many Europeans came to view European unity as the
best means to strengthen continental security.
Movements for European federalism emerged in various countries
including Britain, Germany, Italy, Scandinavia, France and the Low
Countries (Netherlands, Luxemburg, and Belgium – also called the
Benelux countries).
These calls for integration were motivated by many factors.
1. To the defeated and humiliated Germans, integration was a means
to reclaiming lost glory by re–asserting themselves among the
powers of Europe. It was thus, the road to winning acceptance by
neighbours that their country was an independent, equal and
responsible state.
2. To the Italians, the unity of Europe was a means to stem the
growing unemployment problem, as well as to reduce the rising
communist influence.
3. In many other areas, such as France, Scandinavia and the Low
Countries, European unity was the only means to prevent a
resurgence of German militarism and Soviet aggression in Europe.
4. Over and above the narrow national interests of individual
countries, the aftermath of the Second World War generally drew
Europe towards integration because;
i.
The United States of America and the USSR had emerged
as super powers. Individual West European countries felt
that they would not compete effectively with the super–
powers except with a high degree of cooperation.
1
ii.
American policy in aiding Western Europe during the war
also pointed to the need for integration as it emphasized the
need for unity in confronting the war.
iii.
In the immediate post–war years, Europeans were skeptic
about the potential value of a worldwide organization in
providing solutions to the specific problems of the continent.
The League of Nations formed in 1919, had been a total
disappointment as its failure to prevent or resolve conflict
drove the world into World War Two. Europeans came to
believe that World Unity would best be approached in
stages. To this end, many Europeans advocated for
European integration as a more realistic first step to world
unity.
iv.
The aggressive Soviet policy of spreading communism
worldwide threatened West European nations’ capitalist
ideology. It therefore, challenged the Western Europeans to
redefine themselves as an entity- a block with common
interests. Advocates of cooperation thus argued that the best
way to stem Soviet threats was European cooperation.
Britain’s Role in the Emergence of European Integration
During the Second World War, Britain had provided leadership to
the allies and European federalists believed she should be the natural
organizer of European unity. In particular, Winston Churchill, the
charismatic war–time leader had not only led Europe in war, but had
conducted a formidable campaign for a united Europe. Even after his
electoral defeat in 1945 which brought the Labour party in power in
Britain, Churchill continued his campaign for a federated Europe. Under
2
his patronage, an International Committee for the Movement of
European Unity (ICMEU) was established in November 1947.
The
Committee was tasked to arrange for a congress of all those interested
in union and to educate Europeans on the benefits of federalism. In May
1948, the committee called the first congress, which was held in the
Hague (Netherlands). The Congress emphasized the need for unification
and ways in which it could be achieved.
In March 1947, Britain and France signed the Treaty of Dunkirk as an
Alliance of Mutual Assistance against a possible German attack. The
Treaty which became operational from September 1947, provided for
bilateral economic assistance and cooperation between the two
countries as well as military support especially in case of German
aggression. It was probably the first post World War Two treaty of this
kind between European countries to attempt unite with the aim of
warding off enemy attacks. By the treaty of Brussels in 1948, all western
Europeans nations accepted as binding between them and Britain the
terms of the Dunkirk treaty.
At this point, however, Churchill’s interest in unification had begun to
dissipate. This could be read from his speeches which consistently
implied that Britain was not part of the wider West European Continental
body. Churchill’s change of mind represented the general attitude of
Britain towards European unity- a reluctance which remained unchanged
up to the 1960s. During this time, Britain’s commitments turned to the
commonwealth and her special relationship with America, which had
flowered to its fullest between Churchill and Roosevelt.
3
Nonetheless, Britain continued to advocate for inter-governmental
cooperation as the maximum level of collaboration. On the contrary,
many West Europeans loudly expressed preference for confederation- a
position that was supported by the United States, which in the face of
increasing Cold War hostilities, desired a more stable and effective
Western Europe than individual countries could afford. Integration was
seen as the best means to achieve a stronger Europe.
Pressure
from
other
European
countries
notably
Ireland
and
Scandinavia also forced Britain in 1949 to lead the continent in the
formation of the Council of Europe. The statute of the Council signed in
London in May 1949, outlined the following as its objectives:
1.To achieve greater unity between its members for the purpose of
safeguarding and realizing shared ideals and principles.
2.To facilitate economic and social progress among member
states.
The Council was Western Europe’s first post war political organization.
But Britain frustrated any further advancement towards European unity
by refusing to accept anything beyond a loose inter-governmental
structure. For this reason the body became unpopular with the ardent
supporters of federalism, who saw the Council as nothing but an
instrument of expressing public opinion.
Nevertheless, the European Council became an instrumental voice in
matters of European integration. Indeed, in 1950, it sponsored the
European Convention for the Protection of Human rights and
Fundamental Freedoms, which led to the declaration of Rights and the
establishment of the European Court of Justice. The Council of Europe
could therefore be seen as a predecessor of the European community
4
as it marked the beginning of a real and organic cooperation between
the states of Europe.
Economic Cooperation.
The actual drive to European unity began as a result of economic needs.
Major steps in this direction were the formation of the General
Agreement on Trade and Tariffs (GATT) in 19471 and the Organization
of European Economic Cooperation (OEEC) in 19482. The roots of the
OEEC lay in the 1946 agreement of the Benelux countries (Belgium, the
Netherlands and Luxemburg) to form an economic unit. By 1948, they
had formed a customs union between them and established a common
external tariff. This agreement was facilitated by the geographical
compactness of the countries which was lacking elsewhere in Europe.
In the aftermath of the Second World War, however, Western Europe
experienced uniform problems– the main one being the need to
reconstruct the war ravaged economies. The United States drew the
Marshall programme to aid European recovery, but demanded the
formation of a body uniting European countries to oversee and to take
responsibility for the operation of the programme. This led to the
formation of the OEEC in 1948.
The 23 founding members of GATT were: Australia, Belgium, Brazil, Burma,
Canada, Ceylon, Chile, China, Cuba, Czechoslovakia, France, India, Lebanon,
Luxembourg, Netherlands, New Zealand, Norway, Pakistan, Southern Rhodesia,
Syria, South Africa, United Kingdom and the United States. The first Session of the
Contracting Parties was held from February to March in Havana, Cuba.
1
2
Membership of the OEEC included Austria, Belgium, Denmark, Greece, Ireland, Iceland, Italy,
Luxembourg, Netherlands, Norway, Portugal, Sweden, Switzerland, Turkey, United
Kingdom, plus Western Germany
5
The OEEC ensured effective use of American funds and led to a revival
of European production and trade through a reduction of quotas,
creation of credit and the provision of a mechanism for the resettlement
of accounts between countries. However,
1. the OEEC was only concerned with the removal or reduction of
quota restrictions on European trade. This could not prevent
distortions or discrimination in patterns.
2. it concentrated on easier problems which meant that progress
became increasingly slower than required as more difficult issues
remained unresolved. For example, solutions for issues of
economic growth and development remained pending.
The Drive Towards the European Community.
By 1950, it had become clear to the advocates of a united Europe that
the Council of Europe and the OEEC were not appropriate instruments
for their purpose. This led the French foreign Minister, Robert Schuman,
to call for the creation of a single market for coal and steel for all
European countries to be administered jointly by the member states and
a supra-national authority. He further proposed a gradual elimination of
tariffs in exchange of such coal and steel resources. The Schuman
proposals led to the Treaty of Paris (1951) which ratified the formation of
the European Coal and Steel Community (ECSC). Signatories to the
agreement were only six namely, France, West Germany, Italy, the
Netherlands, Belgium and Luxembourg which agreed to organise the
free movement of coal and steel and to free up access to sources of
production. Britain was invited but rejected the offer on grounds that the
idea of a supra national authority would interfere with her sovereignty.
6
Thus, the ECSC represented the first effective step towards European
integration.
Objectives
The aim of the treaty, as stated in its Article 2, was to contribute, through
the common market for coal and steel, to economic expansion,
employment and better living standards. Thus, the institutions had to
ensure an orderly supply of coal and steel to the common market by
ensuring equal access to the sources of production, the establishment of
the lowest prices and improved working conditions. All of this had to be
accompanied by the growth in international trade and the modernisation
of production.
In creating a common market, the treaty introduced the free movement
of products without customs duties or taxes. It prohibited discriminatory
measures or practices, subsidies, state aids or special charges imposed
by states and restrictive practices.
In the mid-1950s, Europe’s march to closer union got further stimulants
from various quarters.
1. The economic federation of the Benelux countries, the ECSC, and
the Nordic Council launched in 1952 were working examples of
economic integration.
2. New world events too conspired to make Europe more aware of
itself as an entity. There were uprisings in East Germany and
Hungary, an abortive Swez expedition in 1956 and a surge of
nationalism in Africa and Asia, all which required united European
action if the continent was to remain stable.
7
3. After the initial tensions of the Cold War, there appeared to be
peaceful coexistence that permitted a greater air of relaxation. This
left time for Europe to consider the prospect of unity.
4. Many European countries were enjoying economic prosperity,
which meant that governments had fewer internal problems to deal
with. State energies could therefore be directed to international
concerns such as closer cooperation.
5. There was pressure from the ECSC Common Assembly (a kind of
international parliament which was one of the organs of the ECSC)
to establish a committee to explore avenues of further integration.
As we shall see, the formation of the common market was partly a
result of this pressure.
6. The rigid structure of the OEEC provided little room for further
integration as any such moves required the consent of all
members. Proponents of unity saw the establishment of a common
market, whose membership would be open to all West European
countries, including members of the OEEC as a most appropriate
starting point.
The establishment of the European Economic Community (EEC/EC)
or Common Market.
The process leading to the formation of the European Common Market
was spearheaded by the ECSC. At a meeting of its foreign ministers in
Messina (Italy) in June, 1955, it tasked the Belgian statesman, Paul
Henri Spaak, to examine the possibilities of expanding the existing
community into an economic association based upon free trade, joint
social and financial policies and free movement of capital and labour.
The culmination of Spaak’s proposals were the treaties of Rome signed
on 25th March, 1957 to establish the European Economic community
8
(EEC) and the European Atomic Community (EURATOM). These
treaties became operational on 1st January, 1958. The signatories to the
treaties were the six members of the ECSC, namely Belgium, France,
West Germany, Italy,
Luxembourg and the Netherlands. As per the
treaties, trade barriers were progressively lowered in the three
cooperative bodies, and in 1967 they were merged to form the European
Community. Thus, the three European Communities were well
established by the mid-60’s and spurring the European Community
forward. However, the EC leaders felt the Communities could be further
improved. Under the Merger Treaty, all three communities were fused
into one, managed by the Single Commission, Council and Assembly
hence the Common Market. This was a significant step towards the EU
as we know it.
The Common Market treaty provided for the entry of new members from
among West European nations who believed in the ideals of the
organization. However, individual founder member countries were
granted veto powers to block any new entry if they so wished. (This veto
was to be primarily used by France, under President De Gaulle, to block
attempts by Britain to join the Common Market).
In spite of being represented at the launch, Britain did not join the
Common Market because;
1. the British thought the venture would fail.
2. they were opposed to a common external tariff which they thought
was inconsistent with their commitments under the commonwealth
scheme.
3. their interest in cooperation was limited to the formation of a free
trade area. They thus proceeded to form the European Free Trade
Association (EFTA) in 1959 as a parallel organization to the EEC.
9
Signatories to the EFTA were the three Scandinavian states and
Switzerland, Austria and Portugal. The main aim of EFTA was to
abolish tariffs between its members over a period of ten years, but
without any attempt to establish a common external tariff or any
form of political union.
Over time, however, a number of factors made Britain to change her
attitude towards the EEC.
1. Compared to the EEC, the performance of EFTA proved dismal.
While it might have lived up to its limited expectations, EFTA had done
little to counteract the growing importance of the EEC/EC. Some of its
members such as Austria, Switzerland and even Britain were still trading
more with the EEC/EC than with their EFTA
associates. Moreover,
EFTA members’ attitudes towards the Common Market varied. For
instance, while Switzerland preferred to remain aloof, Denmark was
keen to come to terms with the EEC/EC, and was only held back by the
importance of the British market for her agricultural goods. Besides, as
an economic unit, EFTA lacked the strength and cohesion that would
guarantee its survival. In fact, this became clearer in 1964 when the
newly elected Labour Government in Britain unilaterally imposed a 15
percent surcharge on EFTA imports. This meant that the EFTA states
enjoyed no preferential treatment at all in the British market.
2. As former British colonies attained political independence, and joined
the Commonwealth, Britain came to realize that much as it continued to
dominate the trade with its former colonies, it no longer retained
exclusive trading advantages as before. Projections of the future
suggested that trade with the Commonwealth would steadily decline as
a percentage of Britain’s total commerce. On the political front, again
Britain came to realize that the US was not committed to what Britain
deemed as a special relationship between them. This was demonstrated
10
by America’s aloofness in the Swez Crisis in 1956 and the election of
John Kennedy as president of the US. Kennedy envisaged working with
an integrated Western Europe– a veiled preference for the EEC rather
than individual countries like Britain. It became clear to Britain that she
would have no special favours from the US if she persisted on remaining
outside the Community by choice.
3.Internal developments within the EEC were also causing Britain
concern. In 1960, the six EEC nations declared an intention to speed up
the process towards a common market by enrolling interested West
European nations. In the same year, de Gaulle announced that the six
would also be considering the formation of a political union. Britain was
getting worried that if such future plans succeeded while she remained
outside the union, her influence in both the world and the European
political stage would decline. She also worried that the more she
delayed to join the community, the more difficult it was becoming for her
to do so as the community was constantly advancing to a higher stage.
In these circumstances, Britain made two efforts to join the EEC – the
first in 1961–1962 and the second in 1966–67. Both attempts failed
because of the French veto.
To many countries outside the community, Britain was the natural leader
of Europe. They were thus prepared to join the community if Britain
became a member. It is no wonder that each of the attempts by Britain in
the 1960s to join the community were followed by similar expressions of
interest from Denmark, Ireland and Norway. When Britain’s admission
was rejected, they too suspended their interest.
Inevitably, France was accused by other members of the community of
preventing the growth of the organization by vetoing the British entry.
11
So why was France against Britain’s membership of the community?
1. According to the French, especially under de Gaulle, Britain was
not yet prepared to be truly “European” as she was too closely tied
to the U. S. In particular, de Gaulle was opposed to the concept of
Atlantic partnership outlined by Kennedy and supported by Britain,
and suspected that Britain’s entry into the Common Market would
play the role of an American Trojan horse (i.e. fronting for
America).
2. The French also thought that Britain valued her imperial
connections with the Commonwealth more than integrated links
with European nations. In the French view, it was going to be
difficult for Britain to sacrifice such links for the sake of a federated
Europe. Her entry into the Common Market would, therefore, be a
stumbling block to the achievement of the desired unity.
3. Basically, however, President de Gaulle wished to see the
Common Market as a third force in world affairs between the
Soviet and American blocks and led by France. British
membership of the EEC would certainly be a threat to French
leadership in Europe.
Britain’s Admission to the Common Market
De Gaulle’s death in 1969 paved the way for Britain’s entry into the
Common Market. Although the French had still to be satisfied about
the seriousness of Britain’s interest in the membership, the new
French president Georges Pompodou was more sympathetic to
British membership than his predecessor. At the same time, the new
British Prime Minister, Edward Heath, provided the assurance needed
by France. At any rate, he had been one of the protagonists of British
membership of the EEC since the first application in 1961.
12
The struggle for power within the community between France and
Germany was another advantage to Britain. The two countries had
outranked all the other members of the community and there was fear
that sooner or later, they might confront each other on a major issue.
The entry of Britain was seen to create a better balance of power.
Thus, much as Britain was unacceptable as an American appendage,
her membership was desirable as a counter weight to the German
might, which France feared might destabilize the security situation in
central Europe and destroy the Common Market.
Negotiations for British membership were completed by the signing of
the treaty of Accession in Brussels in January 1972,
but the
membership was effective from January the following year, following
ratification by the European Parliament. As would be expected,
alongside Britain, the treaty also admitted Ireland, Denmark and
Norway. However, the Norwegian membership failed to take off after
a popular referendum at home opposed her entry to the EC. Thus,
the membership of the community rose to nine. In 1981, Greece did
become a member of the EC and in 1987, Spain and Portugal too
were admitted to the community bringing the total number of
members to twelve. The entry of all the three countries followed the
overthrow of dictatorial regimes and the establishment of more
democratic systems.
Read
Britannica. https://www.britannica.com/topic/European-Union
(in addition to other sources in Course Outline)
13
From the Common Market to the European Union
As the European Community grew, its leaders realised they needed to
enhance the free movement of goods and services. This would help the
EC create wealth and jobs. Thus, in the early 1970s, the European
Political Cooperation (EPC; later renamed the Common Foreign and
Security Policy by the Maastricht Treaty) was formed. The body
composed of the foreign ministers of each country met regularly to
coordinate foreign policy.
In 1975, the European Regional Development Fund was created to
address regional economic disparities and to provide additional
resources to Europe’s most deprived areas.
The Single European Act passed in 1987
1. Legalized the EPC meetings.
2. The agreement entrenched the European Regional
Development Fund formally into the community’s
treaties as part of a new section on economic and social
cohesion that aimed to encourage the development of
economically depressed areas. Consequently funding
for social and regional programs increased.
Generally, the Act also prepared the ground for the Treaty of the
European Union in 1992.
The Maastricht Treaty-A Europe without frontiers
The Maastricht Treaty (formally known as the Treaty on European
Union), which was signed on February 7, 1992, created the European
Union. However, owing to resistance from various countries, an
amended version of the treaty came in to effect later on November 1,
14
1993, setting clear rules for the future single currency as well as
for foreign and security policy and closer cooperation in justice and
home affairs.
By 1 January 1995 – existing EU members were Germany, France, Italy,
The Netherlands, Belgium, Luxembourg, Denmark, Ireland, United
Kingdom, Greece Spain and Portugal. The EU then gained 3 new
members: Austria, Finland and Sweden.
On 1 January 1994 a European Economic Area (EEA) was created. The
agreement extended the single market to countries in the European Free
Trade Association (EFTA) (an intergovernmental organization of
Iceland, Liechtenstein, Norway and Switzerland. It was set up in1959 by
its then seven Member States for the promotion of free trade and
economic integration between its members). Following the EEA
agreement, the free movement of people, goods, services and capital
was launched around the EEA’s 30 countries (EU-27 plus Iceland,
Liechtenstein and Norway). Switzerland did not take part in the EEA but
does have access to the single market.
In pursuit of its major goal to create a common monetary system, the EU
established the euro Single currency of 18 countries of the European
Union (EU). This also became the official currency in several areas
outside the EU. The euro was adopted as a unit of exchange in January
1999. The advocates of the single currency believed it would strengthen
Europe as an economic power, increase international trade, simplify
monetary transactions, and lead to pricing equality throughout Europe.
Euro currency notes and coins were introduced in January, 2002 and
became the sole national currency in most participating countries by
March. However, Britain and Sweden decided not to adopt the euro
15
immediately, and voters in Denmark rejected it. As of 2020 only 19 of the
27 EU member states used the euro as their sole currency. These
countries are collectively called the “eurozone.” Non-participating
member states negotiated currency “opt-outs” upon their entry into the
EU. For example, prior to officially leaving the EU in 2020, the United
Kingdom’s opt-out agreement had allowed the nation to continue using
the pound sterling (£).
Further Expansion of the EU
Originally confined to western Europe, on 1 May 2004 the EU enlarged
to include – 10 new countries- Cyprus and Malta along with 8 Central
and Eastern European countries — Czechia, Estonia, Hungary, Latvia,
Lithuania, Poland, Slovakia and Slovenia finally ending the division of
Europe after the Second World War.
The EU’s principal institutions are the European Community, the Council
of Ministers (a forum for individual ministries), the European Commission
(an administrative bureaucracy), the European Parliament, the European
Court of Justice, and the European Central Bank. In 2012 the EU was
awarded the Nobel Prize for Peace.
EU Institutions
The European Council
The European Council consists of the heads of state or government of
the EU's member states, together with its President and the European
Commission President. It defines the EU's general political direction and
priorities.
The Council of the EU
16
The Council of the EU represents the member states' governments.
Informally also known as the EU Council, it is where national ministers
from each EU country meet to adopt laws and coordinate policies. Each
EU country holds the rotating Presidency of the Council every six
months.
The European Parliament
The European Parliament is the EU body with legislative, supervisory,
and budgetary responsibilities. Members of the European Parliament are
elected directly by EU citizens every five years, and currently there are
751 members, presided over by a President. It was established in 1952
as Common Assembly of the European Coal and Steel Community, and
in 1962, the assembly changed its name to the European Parliament,
with the first direct elections held in 1979.
The European Commission
The European Commission is the EU's politically independent executive
arm. It is solely responsible for drawing up proposals for new European
legislation, and it implements the decisions of the European Parliament
and the Council of the EU.
The Commission is the sole EU institution tabling laws for adoption by
the Parliament and the Council that protects the interests of the EU and
its citizens on issues that cannot be dealt with effectively at national
level. To get the technical details of its proposals right the Commission
consults experts as well as the general public, through a public
consultation process.
17
Questions for further research
1. What role did national interests play in European integration?
2. Identify and explain the functions of the major organs of the
EEC/EC
3. Discuss the aims and objectives of the European Common Market
and show the extent to which they had been achieved by the
1990s.
4. What major changes were introduced in to European integration
with the formation of the European Union?
5. What are the major achievements of European federalism from the
formation the Common Market to date?
6. What does Brexit mean for EU?
Q 1) Why did the United Kingdom (U.K) leave the European Union?
As per some reports, some of the main reasons for the U.K leaving the
E.U are mentioned below.
1. To regain control over immigration and its borders.
2. The Brexit vote was larger in areas that saw a huge rise in the
proportion of immigrants between 2004 and 2011.
3. English national identity.
4. Citizens taking back power from the elite and big merchant banks
5. The 2008 financial crisis and Eurozone crisis may have
encouraged the separation to protect the UK’s economy.
18