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.
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20. Economic and Monetary Union
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7. The First Years of the European Economic Community (the 1960s and into the 1970s)
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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4. ‘France is back’ … in a French Europe
Olivier Rozenberg
This chapter examines France’s relationship with the European Union by focusing on the heterogeneity of adaptation to the EU. While public policy and legislation became increasingly Europeanized, the EU had a limited impact on political life and the domestic institutional system. This situation changed during the 2010s, as revealed by the 2017 presidential elections and the arrival of President Macron. The chapter considers patterns in France–EU relations before discussing the impact of EU membership on public opinion and political parties. It then looks at the Europeanization of French politics and the impact of EU membership on French institutions as well as public policy. The chapter argues that while domestic politicization is recent, there remains considerable continuity in other aspects of France’s adaptation to the EU.
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5. The Triumph of Community Europe
Craig Parsons
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.
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6. Charles de Gaulle’s Uncertain Idea of Europe
Jeffrey Vanke
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.
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10. From the Single Market to the Single Currency
Dorothee Heisenberg
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.