3.3.5
Integration into the European Economy
Reasons Behind Integration into Europe's Economy
Reasons Behind Integration into Europe's Economy
The prospect of a federal Europe had begun with the 1951 Treaty of Paris, which formed the European Steel and Coal Community. Several countries in Europe wanted to create a customs union, meaning that the continent could have an integrated economy.
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A common market
A common market
- The European Economic Community (EEC) was formed to establish a common market in Europe.
- Countries sought to eliminate trade barriers and create a shared trade policy with nations outside the EEC.
- Between 1958 and 1968, the value of trade between members of the EEC increased fourfold.
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Common Agricultural Policy (CAP)
Common Agricultural Policy (CAP)
- The EEC provided a CAP. This appealed to European farmers as they were protected against agricultural imports.
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Political motivations
Political motivations
- The EEC was designed to reduce tensions after WW2 and establish harmony in the continent.
- It was hoped that it would build upon the rapprochement between France and Germany, and create lasting reconciliation and reducing the possibility of war.
- Political cooperation was prerequisite for joining the EEC.
- Hallstein (1963): "[The EEC] would give Europe the power to act and to play its part in the building of a better world. Above all, it would be a decisive rejection of an old, precarious, and unstable system which had led to such destruction and misery....it is an attempt to build on a federal pattern a democratically constituted Europe."
The Treaty of Rome, 1957
The Treaty of Rome, 1957
The Treaty of Rome was signed in 1957, establishing the EEC.
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Signatories of the Treaty of Rome
Signatories of the Treaty of Rome
- The Treaty of Rome in 1957 was signed by:
- West Germany.
- France.
- Italy.
- Belgium.
- The Netherlands.
- Luxembourg.
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Later members
Later members
- In 1973, the UK, Ireland and Denmark joined the EEC.
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West Germany and the European Monetary System
West Germany and the European Monetary System
- In 1978, Helmut Schmidt helped form the European Monetary System.
- This was designed to align the currencies of members of the EEC. It was hoped this would help create stable exchange rates and prevent inflation.
- Organically, the Deutschmark became the anchor for this system. This was because it was relatively strong and the Bundesbank pursued low-inflation policies.
- The Bundesbank became the heart of the European Monetary System.
1Political & Governmental Change, 1918-1989
1.1Creation & Collapse of Weimar, 1918-1932
1.2Nazi Dictatorship, 1933-1945
1.3Return to Democratic Government, 1945-1989
2Opposition, Control & Consent 1918-1989
2.1Opposition to Government, 1918-1989
2.2Controlling the People, 1918-1989
3Economic Developments & Policies, 1918-1989
3.1Reacting to Economic Challenges, 1918-1932
3.2Controlling the Economy, 1933-1945
3.3Creating the Social Market Economy, 1945-1989
4Aspects of Life, 1918-1989
4.1Attitudes Towards Women, 1918-1989
4.2Education & Cultural Developments, 1918-1989
5Historical Interpretations
5.1Influence of German History
5.2Hitler & Foreign Policy
5.3Contribution of Other Nations to WW2
5.4Reasons for Invading Poland
Jump to other topics
1Political & Governmental Change, 1918-1989
1.1Creation & Collapse of Weimar, 1918-1932
1.2Nazi Dictatorship, 1933-1945
1.3Return to Democratic Government, 1945-1989
2Opposition, Control & Consent 1918-1989
2.1Opposition to Government, 1918-1989
2.2Controlling the People, 1918-1989
3Economic Developments & Policies, 1918-1989
3.1Reacting to Economic Challenges, 1918-1932
3.2Controlling the Economy, 1933-1945
3.3Creating the Social Market Economy, 1945-1989
4Aspects of Life, 1918-1989
4.1Attitudes Towards Women, 1918-1989
4.2Education & Cultural Developments, 1918-1989
5Historical Interpretations
5.1Influence of German History
5.2Hitler & Foreign Policy
5.3Contribution of Other Nations to WW2
5.4Reasons for Invading Poland
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