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Chapter

This chapter examines the competition of ideas in France for intra-European cooperation in the 1950s, ranging from traditional intergovernmental arrangements to the sharing of national sovereignty. In particular, it considers how strong political leadership and the formation of crosscutting coalitions that commanded a majority of parliamentary support at critical junctures contributed to the triumph of Community Europe, in the form of the European Coal and Steel Community (ECSC) and the European Economic Community (EEC). The chapter argues that the future of European integration, which followed the Community model, hinged on electoral outcomes and parliamentary manoeuvrings in France that had less to do with the forcefulness of the ideas at issue than with unrelated political developments. It also looks at the demise of the European Defence Community (EDC) that paved the way for the ECSC and EEC projects.

Chapter

This chapter focuses on the ‘other’ European communities and the origins of the European Economic Community (EEC). Negotiations over a plan for a European Defence Community (EDC) ran parallel to those over the European Coal and Steel Community (ECSC). Connected with the EDC was a proposal to create a European Political Community (EPC) to provide democratic European structures for co-ordinating foreign policies. This chapter first considers the Pleven Plan for an EDC, before discussing the development of the EDC/EPC plan and the ultimate failure to reach agreement in 1954. It also analyses the Messina negotiations and the road to the Treaties of Rome. Finally, it looks at the experience of the other organization that was created at the same time as the EEC, the European Atomic Energy Community (Euratom), which, like the ECSC, was institutionally merged with the EEC in 1967.

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13. A Special Case  

The United Kingdom and the European Union

Desmond Dinan

This chapter examines the United Kingdom's troubled relationship with the movement for European integration and with the European Union more generally. Citing speeches made by leading British politicians over the last seventy years, including Winston Churchill, Harold Macmillan, Margaret Thatcher, and David Cameron, the chapter outlines four distinct stages of British association with the EU: a period of detachment in the early years; involvement in a lengthy accession process and renegotiation of membership terms; engagement in effort to reform the budget and launch the single market programme; and growing disillusionment as the EU strengthened along supranational lines and extended its policy remit, notably by embracing the economic and monetary union (EMU). These periods cover a range of important developments, such as the European Coal and Steel Community (ECSC), the European Economic Community (EEC), the EMU, and the Single European Act.

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This chapter examines how European integration contributed to the so-called German Problem — the problem of managing Germany's political rehabilitation and economic resurgence after World War II. The achievement rested not only on the Schuman Plan and the ensuing European Coal and Steel Community (ECSC), but also on cooperation among French and German coal and steel producers in the interwar period. The adoption by the new Federal Republic of homegrown economically liberal policies, which complemented and implemented the wartime vision of American postwar policy, was another decisive factor. The chapter first provides an overview of the postwar framework for Germany's economic recovery and political rehabilitation, focusing on the Marshall Plan, the German economic boom, and Jean Monnet's role in shaping postwar Europe. It also considers the evolution of French Ruhrpolitik, the Schuman Plan negotiations, and the eclipse of Monnetism and the founding of the European Economic Community.

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7. Under the Shadow of Stagflation  

European Integration in the 1970s

Richard T. Griffiths

This chapter examines European integration during the 1970s. The 1970s is often portrayed as a dismal decade in the history of European integration, when the European Community (EC) experienced severe turbulence as it digested Britain's accession and was buffeted by the global economic downturn. Stagflation and Eurosclerosis — sluggish economic growth combined with institutional immobility — ensued. At the same time, however, the Community developed in important ways. The European Court of Justice generated an impressive body of case law, and the EC coped with the challenges of enlargement, the break-up of the international monetary system, and the consequences of slower economic growth. The chapter rejects the notion that the 1970s was a dismal decade in the history of European integration and describes it as a transitional period between the launch of the Community in the 1960s and the acceleration of European integration in the 1980s.

Chapter

This chapter reviews the historiography of European integration, focusing on how scholars have interpreted the process and explained key events and developments. It first considers the federalist narrative and its critique of intergovernmentalism, along with its claim that the Hague Congress of 1948 and the European Defence Community of the early 1950s were great opportunities lost; the nation state was in long-term decline; and the European Coal and Steel Community (ECSC) and the European Economic Community (EEC) presaged the eventual emergence of a United States of Europe. At the same time, some scholars and analysts of the European Community (EC) presented a more realistic picture of the process of European integration that foreshadowed the revisionism of Alan Milward in the 1980s. The chapter also examines the views of scholars such as Altiero Spinelli, Jean Monnet, Robert Schuman, and John Gillingham.

Chapter

This chapter examines the various attempts to create the economic and monetary union (EMU), which first became an official objective of the European Community (EC) in 1969 but was achieved only thirty years later. The chapter first provides a historical background on efforts to create the EMU, including long-standing debates between France and West Germany on its design, before discussing the launch of the single currency, the euro, and its subsequent progress up to and including the eurozone crisis in the late 2000s. On the eurozone crisis, it considers both the short-term efforts at crisis management and the long-term reforms that were implemented in an attempt to prevent further crises. Finally, it considers some of the explanations for and critiques of EMU, including critiques of the responses to the eurozone crisis that have been offered by various academic commentators.

Chapter

This chapter examines the connection between German unification and the economic and monetary union (EMU), with particular emphasis on the relationship between the acceleration of European integration in the late 1980s and the seismic geopolitical shifts in Central and Eastern Europe, culminating in the collapse of the Soviet Union in 1991. Following a review of relations between the European Community (EC) and the Soviet Union on the eve of those momentous events, the chapter explains how the rapid integration in Western Europe became intertwined with disintegration in Central and Eastern Europe. It shows that the collapse of the Soviet bloc had a profound impact on the European Union as ten newly-independent Central and Eastern European states clamoured for membership. The chapter concludes with an assessment of EU enlargement in the post-Cold War period.

Chapter

This chapter examines how the European Payments Union resolved the problem of currency convertibility and unlocked the potential of trade liberalization, thereby paving the way for the European Economic Community (EEC), which in turn spurred further intra-European trade. It first provides an overview of trade and payments before and immediately after World War II and goes on to discuss postwar approaches to convertibility and liberalization. It then considers the degree, speed, and commitment with which countries opened up their domestic markets to each other's exports under the Trade Liberalization Programme. It concludes with an assessment of Britain's efforts to join a wider free trade area with the members of the Organization for European Economic Cooperation.

Chapter

Desmond Dinan

This edition examines the origins and evolution of the European Union and the development of European integration from the immediate post-World War II period, when politicians and the public seemed willing to share national sovereignty for the sake of greater security, to the shock of the eurozone crisis nearly seventy years later, when the EU lacked public and political support. Far from existing in isolation, the volume shows that the European Community and, later, the EU was inextricably linked with broader regional and international developments throughout that time. It features contributions from leading scholars of the EU, who discuss a wide range of issues including the common agricultural policy (CAP), the single market programme, the economic and monetary union (EMU), and EU enlargement.

Chapter

This chapter examines how policy towards the European Economic Community (EEC) fitted in with French leader Charles de Gaulle's broader European and international objectives and how the international constraints on his certain vision of France gave rise to his evolving, uncertain idea of Europe. Having denounced the Treaty of Rome before coming to power in 1958, de Gaulle ensured the EEC's survival by undertaking financial reforms in France and warding off Britain's effort to negotiate a wider free trade area. He linked these initiatives to implementation of the common agricultural policy (CAP). The chapter also considers de Gaulle's proposal for an independent and intergovernmental European Union and his role in the so-called Empty Chair Crisis of 1965–6. Finally, it discusses the impact of de Gaulle on the course of European integration.

Chapter

This chapter focuses on the first years of the European Economic Community (EEC). It describes the early 1960s as a period of apparent success for the supranational elements within the EEC, noting the rapid progress made towards the creation of both a common market and a common agricultural policy. The chapter also examines the crisis sparked by France’s decision to boycott meetings of the Council of Ministers in response to proposals for a more supranational method of funding the EEC budget; the impact of this crisis on the process of European integration; the so-called Luxembourg Compromise; and the Hague Summit. It concludes by discussing the EEC’s expansion of its membership at the start of the 1970s, as well as its first moves towards an Economic and Monetary Union and a Common Foreign and Security Policy.

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7. Policy-Making under Economic and Monetary Union  

Crisis, Change, and Continuity

Dermot Hodson

This chapter examines the role of the economic and monetary union (EMU) in the European Union’s macroeconomic policy-making. As of 2015, nineteen members of the euro area have exchanged national currencies for the euro and delegated responsibility for monetary policy and financial supervision to the European Central Bank (ECB). EMU is a high-stakes experiment in new modes of EU policy-making insofar as the governance of the euro area relies on alternatives to the traditional Community method, including policy coordination, intensive transgovernmentalism, and delegation to de novo bodies. The chapter first provides an overview of the origins of the EMU before discussing the launch of the single currency and the sovereign debt crisis. It also considers variations on the Community method, taking into account the ECB and the European Stability Mechanism.

Chapter

12. Employment Policy  

Between Efficacy and Experimentation

Martin Rhodes

This chapter focuses on the European Union’s employment policy, which is currently formulated and implemented via several parallel modes of policy-making, including the standard Community method of legislating and a softer mode of policy-making and innovation via the European Employment Strategy (EES). The chapter begins with a discussion of the three modes of policy-making and governance in European employment policy that have been developed since the 1960s: the mode of legislated ‘rights’, based on the classical Community method; the mode of ‘law via collective agreement’; and a ‘new’ mode of governance, using the open method of coordination. It then considers employment policy-making before the Treaty of Amsterdam and employment policy innovations post-Amsterdam. It also examines social and employment vs economic rights in EU law and concludes with an assessment of future prospects for EU employment policy.

Chapter

7. Economic and Monetary Union  

An Enduring Experiment?

Dermot Hodson

This chapter examines the role of the economic and monetary union (EMU) in the European Union’s macroeconomic policy-making. As of 2015, nineteen members of the euro area have exchanged national currencies for the euro and delegated responsibility for monetary policy and financial supervision to the European Central Bank (ECB). EMU is a high-stakes experiment in new modes of EU policy-making insofar as the governance of the euro area relies on alternatives to the traditional Community method, including policy coordination, intensive transgovernmentalism, and delegation to de novo bodies. The chapter first provides an overview of the origins of the EMU before discussing the launch of the single currency, the sovereign debt crisis, and economic responses to Covid-19. It also considers variations on the Community method, taking into account the ECB and the European Stability Mechanism.

Chapter

This chapter charts the long history of plans for European unity, from the end of the Second World War to the Hague Congress, the Cold War, the Schuman Plan, and the Treaty of Paris. It also considers European federalism and the practical reasons why some moves to European unity found favour with the new governments of the post-war period: the threat of communism and the emergence of the Cold War; the so-called German Problem; and the need to ensure adequate supplies of coal for the post-war economic reconstruction. As a solution to these intersecting problems, Jean Monnet, came up with a proposal that paved the way for the establishment of the European Coal and Steel Community. The chapter examines Monnet’s proposal, national reactions to it, and the negotiations that led to the creation of the first of the European communities.

Chapter

This chapter examines how France's dissatisfaction with de facto German dominance of the European Monetary System (EMS) set the European Community (EC) on the road to the economic and monetary union (EMU) in the late 1980s. It first considers the conduct and outcome of the Maastricht negotiations on EMU before discussing the rocky road to the launch of the single currency in 1999 and the experience of EMU since then. In particular, it analyses the difficulty of enforcing the Stability and Growth Pact for fiscal discipline among participating member states. It also looks at the Delors Committee and the role of Bundesbank president Karl-Otto Pöhl. Finally, the chapter explores attempts to coordinate fiscal policy management as well as the onset and impact of the eurozone crisis.