In today’s episode we’ll be talking about early EU History, from the world wars until
the European Community.
So let’s get to it.
When the First World War ended, it was dubbed ‘the war to end all wars’.
After this, nobody would even THINK about fighting ano… world war II happened.
It saw the deaths of over 50 million people, the Holocaust, and millions were left without
homes.
This war changed world politics: After this war, all European powers were forced to give
up their lucrative colonies over time and lost their status as world powers, after this
war an iron curtain split Europe into two opposing factions, after this war the threat
of nuclear annihilation hung over everybody’s heads.
Europe could no longer afford another European war or else it might be turned into a smouldering
crater.
So, how could the leaders of Europe somehow prevent this from happening again?
Winston Churchill came with the answer: create a ‘United States of Europe’.
The first step towards this goals was set in the Schuman Declaration in 1950.
It stipulated a plan to combine Europe politically and economically, starting with the coal and
steel industries.
Why coal and steel?
Because they were the backbone of war: they were needed to build tanks, ships, and guns.
If these markets were combined between countries, it would tie your war production directly
with that of your enemy.
“This made war not only unthinkable, but also impossible”.
And this union, would have to start with the two biggest rivals of Europe: Germany and
France.
And so in 1951 they signed the Treaty of Paris , a treaty that would mark the beginning of
the European Union.
4 more countries joined the call of peace.
Along with Germany and France there were The Netherlands, Belgium, Luxembourg, and Italy,
forming the European Coal and Steel Community.
The Coal and Steel Community reduced tariffs on coal and steel, increased the trade of
these goods tenfold between the member countries, and created over 100.000 jobs.
But it also had its failures.
One of the goals was to create an integrated energy market, not just one for coal but also
to include oil, gas, and nuclear energy but only achieved collaboration on nuclear.
The ECSC wanted to prevent large corporations from dominating the coal and steel market,
as this had helped Hitler rise to power, it did so by preventing cartels from forming,
and while this action did assure lower prices for its citizens, large corporations still
emerged if they were simply more competitive than their rivals.
As the years passed it became clear that the Coal and Steel Community was becoming outdated
and two new ideas sprung up: France wanted to create an atomic energy community so that
the 6 countries could work together to generate nuclear energy for its citizens.
Germany, Belgium, Luxembourg, and The Netherlands wanted a common market; where goods, services,
and people could be exchanged without tariffs or border controls.
So how did they reconcile these two ideas?
Well, they did both of course!
The European Atomic Energy Community oversaw the nuclear energy market.
And the European Economic Community, or EEC, oversaw economic integration.
The EEC’s first goal was to create a common price level for agricultural goods and create
a customs union.
You might be wondering ‘what the hell is a customs union?’
Basically, it means that the trade barriers between the 6 EEC countries would be removed
on certain products but if anyone from outside the EEC wanted to trade with these countries,
they would be paying the same tariff in each country.
So, let’s say for example, you are a French baker who wants to sell your croissants to
Germany.
Well, just for crossing that border your customer has to pay an extra tax, a tariff, just for
buying a FRENCH croissant.
But now that tariff was removed between the two countries, there would be no extra tax
to pay for your croissant and you would pay as much as you would for a Germany croissant.
It also meant that if an English baker wanted to sell his croissants to either Germany or
France, then in both countries the same tariff would apply, meaning that neither country
has an advantage based on import taxes.
And thus, making it easier for foreign companies to do business in the EEC.
Over the years Europe became ever closer: Economies became more interconnected, governments
worked together, and trade between the countries was increasing.
But there was one person with whom this development didn’t sit right: President Charles de Gaulle,
the war hero who led the French government-in-exile during WWII.
De Gaulle was a French nationalist and he believed France was handing over too much
of its power to the EEC.
You see, up until this point whenever countries decided for more integration, the 6 members
of the EEC would give authority over such matters to the European institutions, basically
creating a sort of European government.
This was facilitated by the USA and the United Kingdom who helped guide Europe towards more
integration.
And it’s especially this last part that just did not sit well with De Gaulle: why
would the UK, a country in decline who was losing more and more of its colonies every
year, and the USA, a country an ocean away, determine French affairs?
De Gaulle proposed a new course for Europe: The UK, the USA, and NATO would have no more
power Europe.
Power would be taken away from the EEC, the coal and steel union, and the European atomic
agency and turned back to the governments of the member states.
And France would retake its role as a super power in world by dominating this new western
Europe.
You can imagine how the rest of Europe were not so eager to replace the USA with France.
“uhh yeah, did you notice how half of Europe is gobbled up by this giant super power right
across our borders?
WE NEED NATO’S SUPPORT!!!
Stop trying to rule Europe!”
After years of negotiations President De Gaulle pulled out of the EEC in 1965, practically
shutting it down.
The EEC needed a unanimous decision on any action it took and without France there would
always be one vote missing.
So, the countries of Europe did what they do best: compromise.
They agreed that France would take their seat in the EEC again if 1.
Any EEC country would be allowed to veto any EEC plans if it was a ‘very importation
national interest’ even if the majority voted in favour 2.
Creating a ‘Common Agricultural Policy’ in the EU that set the prices for fruits,
vegetables, sugar, and cereals.
And 3.
The EEC must ask approval on certain important topics from the member countries themselves.
And so, the idea of a united Europe had overcome its first obstacle.
Come back next time to see how Europe moves forward and watch as the European Community
expands
to other nations.