(no subject)
Emer Tannam:04354923
Tutor: R.O’Rourke
European Integration
April 2005
Group 12
1,510 words
Why did Western Europe divide into the outer seven and the inner six in the 1950’s?
The division of Western Europe into the outer seven and the inner six in the 1950’s arose from the political and economic conditions that followed World War Two, which included the Cold War. Therefore in accounting for this development in the 1950`s it is necessary to begin with the immediate aftermath of the War and the circumstances facing governments which eventually led to the Schumann plan for Coal and Steel, and the division of Western Europe described above. I will then give an account of why individual states chose to take the first steps towards integration, and others chose to remain aloof.
The aftermath of World War Two provided the origins for the modern movement for integration. Europe was faced with the considerable task of reconstructing itself economically and politically. Post-war conditions consisted of devastation to physical infrastructure, disruption of economic production and severe social dislocation. Political dislocation paralleled this, as governments that had allied themselves with the Nazis were displaced. Furthermore, the idea that a state was legitimised by the nation was severely shaken by the rise of fascism, which was seen as the highest manifestation of nationalism. So the European governments were faces with a blow to their legitimacy, which would be most effectively re-established through economic growth. As early as 1946 there was movement towards federalism; a political doctrine aiming to replace a Europe of nation-states with a federal Europe. In this year the European Union of Federalists was formed. Although this was a significant step towards integration, it did not meet until 1947, at a time when national governments had been restored, and hence the conditions motivating the movement were removed from political reality. Nevertheless it was attended by representatives of most non-communist states, and presided over by Winston Churchill. His attitude towards the future of Europe at this time is indicative of the way in which Europe would become divided. He envisioned and advocated a commonwealth of European nations, yet believed that Britain should remain outside of it. He was not willing to compromise British sovereignty. However, at this point, no national government was.
The Cold War provides an almost equally important context for the history of European Integration. In Yalta Europe was divided into spheres of influence, a process which would eventually lead to the dissention of the Iron Curtain. The Soviet Union, it soon became apparent, would not respect the boundaries laid down at Yalta. This impelled the American Government to the declaration of the Truman Doctrine, asserting that America would remain involved in European affairs. The subsequent Marshall Plan of 1947 offered structural aid to Europe, while stipulating that trade between Europe and America would be promoted. This was an effort to contain the spread of Communism, by fostering economic dependence and political loyalty. Furthermore, decisions taken on how to spend the American aid had to be taken by European states together. To satisfy this demand the Committee for European Economic Co-operation was formed, on which America was represented. For the purposes of promoting trade, European economic integration was desired. The U.S exerted pressure on national governments to open up their economies to foreign competition, reducing the abilities of National governments to control their economies, but increasing the chances of economic prosperity. This body played a major role in driving home the realisation of the interdependence of the European states` economies, and that any recovery would be widely felt or not at all.
The Federal Government of Germany came into existence in 1949, and would be a major player in the process of economic integration, preventing the potential dominance of France.
The Schumann plan for Coal and Steel was the major economic development that divided Western Europe into the inner six and the outer seven. It was proposed by the French Foreign Minister in 1950, having been devised by Jean Monnet. It called for a pooling of the coal and steel resources of those involved, and hence relinquishing some national sovereignty in these economic sectors. It was welcomed by France, Germany, Belgium, Luxemburg, The Netherlands and Italy. Each state had its own specific reasons for agreeing to the Plan, and forming the inner six.
Monnet believed that for European and hence French economic recovery it was necessary to transcend the national framework. This agreement was a stepping stone, not to complete free trade as the American Government would have preferred, but to the introduction of supranational institutions to foster a European Economic Community. Furthermore, from a national point of view, this plan would avert conflict between France and Germany in the future by necessitating co-operation. It would also secure the supply of coking coal intrinsic to the French steel industry and derived from the Ruhr region.
The German Chancellor was committed to the idea of European Integration, and Franco-German reconciliation. Through the Plan the fledging Federal Republic of Germany would establish legitimacy and international acceptance through the blatant commitment to the capitalist west, demonstrated by participation in the plan. It would shake the stigma of being a pariah nation, and assert the federal republic as the logical successor to the Weimar Republic, and as a peace-loving nation, eager to put the War behind it. Furthermore, it was in the interests of economic recovery that the coal industry overcome the restrictions placed on it by national government.
The Benelux States had basically the same reasons for becoming involved in the Schumann Plan. Coal and Steel were central to these economies and, because of the interdependent nature of their economies, they simply could not risk abstaining from an economic plan concerned with this sector that France and Germany were involved in.
Italy, like Germany, had to rebuild its international reputation, after the devastation wrought by fascism and war. In the context of the Cold War, Italy was on the frontlines, neighbouring Yugoslavia. The plan would affirm its western, capitalist identity, economically, politically, and socially.
Britain refused. She didn’t consider herself just another European state. She had not been defeated or occupied during the war. There was no lack of confidence in the legitimacy of the nation-state, unlike that experienced in Europe. There was little break with the continuity of the past, and so she was not seeking new methods of government. At least not for herself. She was economically stronger, and was not willing to jeopardise this through an economic alliance with France and Germany. She had kept a large overseas empire in the past. She still retained a special relationship with the Commonwealth countries after the Second World War - for example, she had special tariff arrangements with the Commonwealth countries. Therefore, she understood that if she had to follow the European Economic Community policy of common tariffs against the non-member states, she had to sever her relations with the Commonwealth countries.(Post war economic co-operation website)
Faced with the rising external trade barriers of the six E.E.C. countries, Britain took the initiative in establishing the European Free Trade Association in 1960 with 6 other non-E.E.C. European countries - Austria, Denmark, Norway, Sweden, Portugal and Switzerland. These countries together with Britain were known as the 'Outer Seven' whilst the members of the E.E.C. were known as the 'Inner Six'. The E.F.T.A. was basically a trading organization. They planned to remove all tariffs against each other in ten years; but unlike the E.E.C. they were not obliged to adopt common tariffs against non-members.(website)These states had not had the same experience of the war as the inner six. Nor were they as bound closely together. Finland, for example, would not see the same need to establish favourable relations with Germany as France did.
It soon became apparaent that the 'Outer Seven' could not compete with the 'Inner Six' in terms of economic production and growth. The first reason was that the 'Outer Seven' had just a population of 92 million people, while the Inner Six had about 170 million people. Thus the Inner Six had a larger market for the sale of their goods than the Outer Seven. The second reason was that the Inner Six were industrially advanced nations, while the Outer Seven, except Britain and Switzerland, were industrially quite backward. The third reason was that the Outer Seven were separated from one another by long distance, thus creating artificial barriers to the growth of trade. (website)
The Schumann plan resulted in the establishment of the High Authority, The Court of Justice, The Council of Ministers and a consultative committee consisting of consumers, producers and employers. These were funded by a levy on the Coal and Steel industry. The treaty of Paris reconstructed the two central institutions, and integrated East Germany into the European Community of Coal and Steel.
It was a significant step in the process, which culminated with the European Union of today, which consists of 25 member states. The wisdom of being part of the inner six was vindicated as the limitations of the agreement of the outer seven were realised. Now, almost all of the states, which formed the outer seven, are members of the EU, with the exception of Norway.
Bibliography
Stephen George and Ian Bache, Politics in the European Union, (Oxford 2001)
http://www.thecorner.org/hists/europe/econ-coop.htm : Post-war economic co-operation
Tutor: R.O’Rourke
European Integration
April 2005
Group 12
1,510 words
Why did Western Europe divide into the outer seven and the inner six in the 1950’s?
The division of Western Europe into the outer seven and the inner six in the 1950’s arose from the political and economic conditions that followed World War Two, which included the Cold War. Therefore in accounting for this development in the 1950`s it is necessary to begin with the immediate aftermath of the War and the circumstances facing governments which eventually led to the Schumann plan for Coal and Steel, and the division of Western Europe described above. I will then give an account of why individual states chose to take the first steps towards integration, and others chose to remain aloof.
The aftermath of World War Two provided the origins for the modern movement for integration. Europe was faced with the considerable task of reconstructing itself economically and politically. Post-war conditions consisted of devastation to physical infrastructure, disruption of economic production and severe social dislocation. Political dislocation paralleled this, as governments that had allied themselves with the Nazis were displaced. Furthermore, the idea that a state was legitimised by the nation was severely shaken by the rise of fascism, which was seen as the highest manifestation of nationalism. So the European governments were faces with a blow to their legitimacy, which would be most effectively re-established through economic growth. As early as 1946 there was movement towards federalism; a political doctrine aiming to replace a Europe of nation-states with a federal Europe. In this year the European Union of Federalists was formed. Although this was a significant step towards integration, it did not meet until 1947, at a time when national governments had been restored, and hence the conditions motivating the movement were removed from political reality. Nevertheless it was attended by representatives of most non-communist states, and presided over by Winston Churchill. His attitude towards the future of Europe at this time is indicative of the way in which Europe would become divided. He envisioned and advocated a commonwealth of European nations, yet believed that Britain should remain outside of it. He was not willing to compromise British sovereignty. However, at this point, no national government was.
The Cold War provides an almost equally important context for the history of European Integration. In Yalta Europe was divided into spheres of influence, a process which would eventually lead to the dissention of the Iron Curtain. The Soviet Union, it soon became apparent, would not respect the boundaries laid down at Yalta. This impelled the American Government to the declaration of the Truman Doctrine, asserting that America would remain involved in European affairs. The subsequent Marshall Plan of 1947 offered structural aid to Europe, while stipulating that trade between Europe and America would be promoted. This was an effort to contain the spread of Communism, by fostering economic dependence and political loyalty. Furthermore, decisions taken on how to spend the American aid had to be taken by European states together. To satisfy this demand the Committee for European Economic Co-operation was formed, on which America was represented. For the purposes of promoting trade, European economic integration was desired. The U.S exerted pressure on national governments to open up their economies to foreign competition, reducing the abilities of National governments to control their economies, but increasing the chances of economic prosperity. This body played a major role in driving home the realisation of the interdependence of the European states` economies, and that any recovery would be widely felt or not at all.
The Federal Government of Germany came into existence in 1949, and would be a major player in the process of economic integration, preventing the potential dominance of France.
The Schumann plan for Coal and Steel was the major economic development that divided Western Europe into the inner six and the outer seven. It was proposed by the French Foreign Minister in 1950, having been devised by Jean Monnet. It called for a pooling of the coal and steel resources of those involved, and hence relinquishing some national sovereignty in these economic sectors. It was welcomed by France, Germany, Belgium, Luxemburg, The Netherlands and Italy. Each state had its own specific reasons for agreeing to the Plan, and forming the inner six.
Monnet believed that for European and hence French economic recovery it was necessary to transcend the national framework. This agreement was a stepping stone, not to complete free trade as the American Government would have preferred, but to the introduction of supranational institutions to foster a European Economic Community. Furthermore, from a national point of view, this plan would avert conflict between France and Germany in the future by necessitating co-operation. It would also secure the supply of coking coal intrinsic to the French steel industry and derived from the Ruhr region.
The German Chancellor was committed to the idea of European Integration, and Franco-German reconciliation. Through the Plan the fledging Federal Republic of Germany would establish legitimacy and international acceptance through the blatant commitment to the capitalist west, demonstrated by participation in the plan. It would shake the stigma of being a pariah nation, and assert the federal republic as the logical successor to the Weimar Republic, and as a peace-loving nation, eager to put the War behind it. Furthermore, it was in the interests of economic recovery that the coal industry overcome the restrictions placed on it by national government.
The Benelux States had basically the same reasons for becoming involved in the Schumann Plan. Coal and Steel were central to these economies and, because of the interdependent nature of their economies, they simply could not risk abstaining from an economic plan concerned with this sector that France and Germany were involved in.
Italy, like Germany, had to rebuild its international reputation, after the devastation wrought by fascism and war. In the context of the Cold War, Italy was on the frontlines, neighbouring Yugoslavia. The plan would affirm its western, capitalist identity, economically, politically, and socially.
Britain refused. She didn’t consider herself just another European state. She had not been defeated or occupied during the war. There was no lack of confidence in the legitimacy of the nation-state, unlike that experienced in Europe. There was little break with the continuity of the past, and so she was not seeking new methods of government. At least not for herself. She was economically stronger, and was not willing to jeopardise this through an economic alliance with France and Germany. She had kept a large overseas empire in the past. She still retained a special relationship with the Commonwealth countries after the Second World War - for example, she had special tariff arrangements with the Commonwealth countries. Therefore, she understood that if she had to follow the European Economic Community policy of common tariffs against the non-member states, she had to sever her relations with the Commonwealth countries.(Post war economic co-operation website)
Faced with the rising external trade barriers of the six E.E.C. countries, Britain took the initiative in establishing the European Free Trade Association in 1960 with 6 other non-E.E.C. European countries - Austria, Denmark, Norway, Sweden, Portugal and Switzerland. These countries together with Britain were known as the 'Outer Seven' whilst the members of the E.E.C. were known as the 'Inner Six'. The E.F.T.A. was basically a trading organization. They planned to remove all tariffs against each other in ten years; but unlike the E.E.C. they were not obliged to adopt common tariffs against non-members.(website)These states had not had the same experience of the war as the inner six. Nor were they as bound closely together. Finland, for example, would not see the same need to establish favourable relations with Germany as France did.
It soon became apparaent that the 'Outer Seven' could not compete with the 'Inner Six' in terms of economic production and growth. The first reason was that the 'Outer Seven' had just a population of 92 million people, while the Inner Six had about 170 million people. Thus the Inner Six had a larger market for the sale of their goods than the Outer Seven. The second reason was that the Inner Six were industrially advanced nations, while the Outer Seven, except Britain and Switzerland, were industrially quite backward. The third reason was that the Outer Seven were separated from one another by long distance, thus creating artificial barriers to the growth of trade. (website)
The Schumann plan resulted in the establishment of the High Authority, The Court of Justice, The Council of Ministers and a consultative committee consisting of consumers, producers and employers. These were funded by a levy on the Coal and Steel industry. The treaty of Paris reconstructed the two central institutions, and integrated East Germany into the European Community of Coal and Steel.
It was a significant step in the process, which culminated with the European Union of today, which consists of 25 member states. The wisdom of being part of the inner six was vindicated as the limitations of the agreement of the outer seven were realised. Now, almost all of the states, which formed the outer seven, are members of the EU, with the exception of Norway.
Bibliography
Stephen George and Ian Bache, Politics in the European Union, (Oxford 2001)
http://www.thecorner.org/hists/europe/econ-coop.htm : Post-war economic co-operation