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Summary Institutions of the EU
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FemkeBuitenhuisInstitutions of the European Union
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, Institutions of the EU
Summary of Chapters 4 8 10 11 12 13 14
Chapter 4: Organizing Postwar Europe
Preview:
The roots of the EU go way back, for a long time war and conflict were a large part of Europe. The
tensions deepened during the 19th century when nationalism rose and great power competition
paved the way for 2 world wars. Europe embarked on peace in 1945 with most economies
destroyed, unstable political systems, colonies fighting for independence and the continent found it
self divided by the Cold War. Europeans searched for ways to make war impossible, in 1949 the
Council of Europe was created which was a modest start, but it was not enough. In 1952 a new
approach was taken when the European Coal and Steel Community was created.
Key issues:
What were the major historical causes of European conflict and war?
What had changed by 1945 to make Europeans more receptive to the idea of European
integration.
Why were France and Germany so central to the interests of European integration?
How important was the Marshall Plan to the postwar recovery of Europe?
Was focusing on coal and steel a wise move or a distraction?
Europe before the Second World War:
It is remarkable that Europeans have lived in relative harmony since 1945 since their long history of
conflicts. The causes of European conflicts have shifted from wars over land, competing dynastic
houses and religion like for example the Catholics and the Protestants fought for influence. After the
Peace of Westphalia political boundaries in Europe began to achieve new clarity, but so did
governments which created new tensions and possibilities for conflict.
A new element was added to the mix by the mismatch between states and nations, people with
different cultural identities were brought together under common governments. Idealists explored
ways in which Europe might cooperate through regional associations, suggestions ranged from
assemblies of princes to courts that might adjunctate disputes, a European Parliament. In 1875
Immanuel Kant published thoughts on conditions needed for mankind to achieve a state of perpetual
peace. The Napoleonic Wars (1803-1815) were sparked by the resistance of nationalists to
Napoleon's plans to build a European empire. With the outbreak of WW1 in 1914 nationalism
introduced dangerous new pressures. The war had millions of casualties. In the 1919 Treaty of
Versailles Germany was heavily punished, the Germans thought this was unfair so this caused
foundations for more conflict, along with the rise of Nazism. The outbreak of WW2 in 1939 suggested
that the region was incapable of finding long lasting peace.
The troubled state of Postwar Europe:
Countries after the wars:
France: Worried about how to modernize its economy and extend welfare provisions, its
international standing unclear. At war with their colonies who strived for independence.
Britain: Politically stable and enjoyed rapid economic recovery after the war, its international
role had changed. Its colonies also became independent which was seen as a reduce of its
power.
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, West Germany: Focused on economic reconstruction and dealing with a national sense of
shame. Was under four-way foreign occupation and by 1948 divided into socialist and capitalist
sectors, same for Berlin.
Italy: Less successful than West Germany in achieving postwar economic and political stability,
the country never lived up to its potential as a European leading power.
The Nordic states: Political stability, homogeneous populations and few internal social
problems. They harmonized laws, agreed common foreign policy positions and launched joint
ventures such as SAS.
The Benelux states: Were interested in economic cooperation. In 1948 the Benelux customs
union was created, paying the way for the 1960 Benelux Economic Union.
Greece/Portugal/Spain: The road to democracy and economic growth was rocky, they were all
under the rule of dictators. Surrounded by efforts to encourage international cooperation, all
remained relatively isolated.
Ireland: Was neutral during the war but its postwar approach to Europe was subject to the
British lead.
Austria: Relatively unharmed by the war. Although it was divided it quickly returned to its
constitution and declared itself as neutral in 1955.
Eastern Europe: Absorbed into the Soviet sphere, therefore no cooperative deals with the
west.
Three urgent priorities of European states:
1. Economic reconstruction was needed if Europe was to recover and regroup but it was clear
that the region was too tired and drained to be able to manage this alone
2. Europeans not only continued to be suspicious of each other, they also faced the prospect of
being the battlefield of the Cold War, the danger of the ultimate form of destruction, nuclear
annihilation
3. Nationalism had been the main cause of both world wars, and Europeans could not hope to
live in peace unless it was channeled in a more kind direction.
Rebuilding economies (1945-1951)
The postwar international economic system was mapped out in July 1944, there economists and
government leaders laid down the principles of what became known as the Bretton Woods system:
the convertibility of currencies, free trade, non-discrimination and stable rates of exchange. The
International Monetary Fund would encourage exchange rate stability in the interests of
promoting international trade and the World Bank would lend to European countries affected by
the war. The General Agreement on Tariffs and Trade was used as a temporary measure to oversee
negotiations aimed at progressive reduction of barriers to trade. The Marshall Plan was sent to help
Europe recover, the plan is a programme under which the US offered financial assistance to
encourage postwar recovery in Europe. Often credited with providing the investments needed to
pave the way for regional integration. It helped offset communist influence in Western Europe. The
US insisted on the creation of a new international body, the Organization for European Economic Co-
operation which is an international body set up to coordinate and manage Marshall aid, which some
see as the first significant step in the process of postwar European integration, its goals included
reduced tariffs and other barriers to trade, and a free trade area or customs union among its
members.
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