VIII Международная научно-практическая конференция

«Научное пространство Европы – 2012»

Политология/10. Региональные политические процессы

Dinara Aitkazy

student of Master EUCAIS program

A short account of the first steps to European integration.

At the end of the World War II, Europe was totally drained and exhausted. Age-old trade links had been cut off and any heavy industry or vital manufacturing that had not been destroyed was operating below capacity in a Europe.

The continent was relegated to play a supporting role on the international stage owing to the increased might of US and the Soviet Union and the growing rivalry between those two countries. In this context, a divided Western Europe quickly realized that the path to its survival lay in working together and establishing effective, common institutions, if necessary with American financial, technical and military support. There was a great political instability accompanied by heightened social tensions, and innovative diplomatic solutions were urgently needed, even at regional level [1].

The economic and social consequences

On the European economy the immediate effects of WWII had been disastrous. Damage to communications networks interrupted the transport of raw materials and finished products. The irregularity of supplies to industry and the destruction wreaked on the production apparatus resulted in a considerable number of temporary lay-offs and, consequently, in a reduction in purchasing power at a time when requirements continued to grow. Even though, in the victorious countries food rationing continued well after the end of the war, the black market rose dangerous social inequalities, crime, juvenile delinquency and prostitution increased. The simultaneous reconstruction of accommodation, industry and transport infrastructure was stifling national economies. Under these conditions, people were first and foremost preoccupied with the restrictions affecting everyday life and often had difficulty in thinking about their long-term future. The shortage of coal in the very hard winter of 1946–1947 led to mass strikes and demonstrations.

The economic crises and stock-exchange crashes of the inter-war years, led European leaders to take rigorous measures. The imbalance between supply and demand in domestic consumer products pushed prices higher and aggravated budget deficits both internally and externally. Countries were going into debt in order to finance reconstruction programs and to correct social inequalities. Some essential sectors of the European economy had been nationalized; modernization and retooling programs were carried out. While unemployment affected a large part of the continent, some countries, paradoxically, faced a demand of labor in sectors essential for economic revival. Although, German prisoners had been sent to work, programs involving the large-scale migration of foreign workers had been put in train in order to meet the needs of agriculture, coal and steel industries. It was in this difficult economic context that Belgium, France and Italy signed protocol on cooperation and immigration that provided for coal to be supplied to Italy, which its economy needed, in exchange for thousands of unemployed Italians. More than 500 000 Italians immigrated to countries in Western Europe between 1946 and 1955 [2].

1. George Marshall’s Plan (1947)

The Marshall Plan (officially the European Recovery Program) was the primary program of the US for rebuilding and creating a stronger economic foundation for the countries of Europe. The initiative was named for George Catlett Marshall (US Secretary of State) and was largely the creation of State Department officials (especially William L. Clayton and George F. Kennan).

In June 1947 at Harvard University in Boston G. Marshall in his speech offered economic aid to Europe [3].

On 3 April 1948 President of the US Harry S. Truman signed the Marshall Plan into law, establishing the Economic Cooperation Administration (ECA) to administer the program. Formally, the ECA began operation in July 1948. In the same year, the participating countries signed an accord establishing a master financial-aid-coordinating agency, the Organization for European Economic Cooperation (OEEC, later OECD – Organization for Economic Cooperation and Development) [4].

Its official mission statement supported the European economy promoting European production, strength European currency, and assist in international trade, especially with the US. The project was originally planned for all European countries but the negative attitude of the Soviet Union and the states under its influence obstructed already narrow paths of communication between East and West.

The US had his own economic interest in requiring Europe to become wealthy enough and it was increasing the import US goods in Europe. Unofficial goal of the Marshall Plan and of ECA was the containment of growing Soviet influence in Europe, evident of that was the growth and strength of communist parties in Czechoslovakia, France and Italy. Initially the UK had supported the anti-communist factions in some countries in Europe but due to its exhausted condition it requested the US to continue its efforts.

The ECA had an office in each of the sixteen countries participating in the Marshall Plan. The Marshall Plan money was transferred to the funds which were administered by the local governments and the ECA. The Each office of the organization was headed by major American business figures, who advised the process. The Marshall Plan aid was divided among the participant states on a straight per capita basis. A larger amount was given to the major industrial powers because their resuscitation was essential for European rebirth. The cooperative allocation of funds was encouraged and on the government’s meetings, business and labor leaders were examining the economy. Somewhat more aid was directed towards the Allied nations, with less for those that had been part of the Axis or remained neutral.

The Marshall Plan aid mainly was used for purchasing goods from the US. The European nations had exhausted their foreign exchange reserves during the war, and the aid represented their sole opportunity to buy goods from abroad. At the beginning of the plan these imports were mostly food and fuel but later it turned towards reconstruction needs as was originally intended.

A part from upper mentioned funds, there were established counterpart funds which used Marshall Plan to establish funds in the local currency.

According to the ECA rules 60% of these funds had to be invested in industry. In Germany administered funds played a crucial role in lending money to private enterprises for rebuilding. In 1949–50, 40% of the investment in the German coal industry was by these funds. The companies were obligated to repay the loans to the government, and the money then be lent out to another businesses. Thus, these funds played a central role in the reindustrialization of Germany.

The other 40% of the counterpart funds were used to pay down the debt, stabilize the currency, or invest in non-industrial projects.

Another effective ECA initiative was the Technical Assistance Program. This program funded groups of European engineers and industrialists to visit the US and tour factories, industrial facilities and mines, so that they could then copy the American advances at home. Moreover, several hundred American technical advisors were sent to Europe.

The Marshall Plan was originally scheduled to end in 1953. But American Republicans, who were against the Marshall Plan, had gained seats in the Congressional elections in 1950, and conservative opposition to the plan was revived. Even though the plan ended in 1951, American aid to Europe continued through different forms afterwards.

Even though Marshall Plan played an important impact in European cooperation, it was not the realization of the Europeans vision of the united and independent Europe.

2. NATO (1949)

In March 1948 the UK, France and Benelux states signed the Treaty of Collective Defense against Soviet Union and Germany. This protective measure due to the later development against Germany was abolished.

The process of economic and political splitting of Europe into East and West accelerated. The division of Germany into an Eastern and Western part constituted more than a symbolic step. The military division at the formal level became the question of time.

Indeed, in April 1949, the North Atlantic Treaty was signed in Washington by twelve states. And when Western Germany joined European structures and the NATO, an inevitable response from the Eastern bloc followed: the Warsaw Pact in May 1955 [5].

3. Union of European federalists (1946)

The Union of European Federalists (UEF) is a non-governmental European organization, which was campaigning for a federal Europe. It was active in Europe at national and local levels for more than 50 years and it consisted of 20 constituent organizations from 14 European countries [6].

It was founded in September 1946 in Hertenstein, Switzerland with the belief that only a European Federation, based on the idea of unity in diversity, could overcome the division of the European continent. UEF was one of the first initiatives which towards the creation of united Europe. Federalists believed that only a common effort of European citizens working towards this goal could create a peaceful and democratic Europe guaranteeing freedom and the protection of human rights. On 15 and 16 December 1946 in Paris, UEF officially brought into life its function: to co-ordinate and intensify the activities of the different movements and to organize them into a federal structure.

4. Other initiatives

Despite of the leading role of the UEF in the early years after WWII, many other foyers emerged and mobilized people who were interested in a European dimension of post-war reconstruction into the groups, leagues and movements. All of them took action in parallel, with more or less far going goals.

5. Speech of Winston Churchill (September 1946)

Winston Churchill during his visits to Europe and America on several occasions, expressed his views on the future of Europe. The united Europe was his principal foreign policy objective and he was actually the first high level politician to take sides in a debate that then had been the battleground of a few activists.

On September 1946, at the University of Zurich, he gave a speech on European unity that was a sensation, in essential, he postulated a United States of Europe. Churchill advocated Franco-German rapprochement and proposed ‘a kind of United States of Europe’ (but without the involvement of Great Britain), set the scene for a future federation of non-Communist Western European nations [7]. On the other hand, he declared that Great Britain might find its niche between the USA and the USSR and “be a friend and sponsor for the new Europe”. Churchill aimed his speech specifically at the world leaders.

Winston Churchill’s Zurich speech was the starting point for the tide of opinion in favor of a united post-war Europe.

6. European Movement and the Congress of the Hague (1948)

During the winter 1947-48 the “European Movement” was born.

Many hopes were related towards the Congress of Europe, organized by the Movement in May 1948. The Congress was supposed to close symbolically the period of nervous and hazy relations, zealous quest for the European base and reserved attitudes. The most influential politicians from France, Germany, the UK, the Benelux and Italy discussed future development of Europe. The final result brought disappointment, especially for those who assumed that the way to a federal Europe would already be open.

The Congress did not create European structure. The only one real idea was the first European organization – Council of Europe. In 1949, the status of the Council of Europe was signed by ten states; this gave the organization the inter-governmental character. Council of Europe was formed by ideas of parliamentary democracy and human rights. The act of the establishing of such an organization approached Europe to the process of integration.

The European Convention on Human Rights and the European Court of Human Rights from 1951 confirmed this trend. These two lines should be distinguished from economic integration but their value orientation undoubtedly played a relevant role in the process of European integration. The important task was to build a modern and united Europe, capable partnership with the US in the long run. But this constituted a formidable and especially long-term objective. Furthermore, American policies represented a crucial factor in West European development in the 1950s.

7. The parliamentary Assembly

The Parliamentary Assembly of the Council of Europe (PACE) is organ of the Council of Europe, which is composed of the Committee of Ministers and the Assembly representing the political forces in its member states [8].

PACE can be considered the oldest international parliamentary assembly which was established on the basis of an intergovernmental treaty. Its powers extend only to the ability to investigate, recommend and advise.

It discusses European events and examines current subjects which interest the nations. The main themes covered by Assembly are human rights, democracy, protection of minorities and the rule of law. Its recommendations have significant weight in the European political context.

On August 1949 PACE held its first session in Strasbourg. During the winter 1949-50 was working on plans for advancing the Council. However, all these initiatives did not find support in the governments of European states and mostly by the British government.

The significant change came from France.

8. The Monnet Plan

At the end of the war, Jean Monnet (Commissioner-General of the French National Planning Board), drafted the first revival and modernization plan for France. He considered that economic cooperation with Germany was essential, particularly its industrial potential. However, he knew that it was too early to move towards total economic union at European level because of the vast discrepancies in prices, wages and tax regimes and also the general public was not ready for it. He believed that it would be extremely difficult to build a European edifice from the top down. He foresaw, a Europe that was built on a functional basis by integrating key sectors of the economies [9].

France wanted to modernize its heavy industry, knew how much the steel industry in eastern France depended on substantial supplies of coal. But the only available coal deposits were Ruhr and Saar area.

So, Monnet proposed the Monnet plan (known as the Theory of l’engrenage) based on taking control of the German coal-producing areas and redirect the production into French industry.

In 1949, Monnet realized that the friction between Germany and France for control of the Ruhr, the important coal and steel region, was rising to dangerous levels, presaging a possible return to hostilities as had happened after the WWI. Monnet with associates conceived the idea of a European Community.

What was the first real achievement of the integration process?

On 9 May 1950 — in a speech inspired by Jean Monnet and with the agreement of Chancellor Konrad Adenauer of West Germany— French Minister of Foreign Affairs, Robert Schuman declared his aim to “make war not only unthinkable but materially impossible.” The means to do so, Europe's first supranational community, was formally established by the Treaty of Paris (1951), signed not only by France and West Germany, but also by Italy, Belgium, Luxembourg and the Netherlands. Britain was invited to participate, but it refused on grounds of national sovereignty.

The Schuman’s Declaration, seen as the ‘birth certificate’ of the community of Europe, is a major milestone in the history European integration. It had several distinct goals:

· It would mark the birth of a united Europe;

· It would make war between member states impossible;

· It would encourage world peace;

· It would transform Europe by a 'step by step' process (building through sectoral supranational communities) leading to the unification of Europe democratically, including both East and West Europe separated by the Iron Curtain;

· It would create the world's first supranational institution, and

· It would create the world's first international anti-cartel agency;

· It would create a single market across the Community;

· It would, starting with the coal and steel sector, revitalize the whole European economy by similar community processes.

Thus, the turning Point in the History of Europe was the ECSC.

The ECSC was the first international organization based on supranational principles and helped for establishment of a common market for coal and steel between these states, intended to expand the economies, increase employment, and raise the standard of living within the Community. The market was also rationalizing the distribution of high level production at the same time as ensuring stability and employment. The common market for coal was opened on 10 February 1953 and for steel on 1 May 1953 [10].

Thus, coal and steel industries were removed from full national competencies and placed under supranational control. A supranational authority had built a decision centre for production, investments, social conditions and to a certain extent prices as well. “Supranational” was the key word that meant the qualitative moving in the history of a European unification. From the legal perspective the Treaty enabled the development of conditions for the rise and application of a unique legal system of European Communities. The Treaty became the keystone of the European integration in a broad sense. The Treaty created the High Authority, which governed the ECSC. The High Authority members were designated by the governments of the member states.

The Authority's principle innovation was its supranational character. It had a broad area of competence to ensure the objectives of the treaty were met and that the common market functioned smoothly. The High Authority could issue three types of legal instruments: Decisions, which were entirely binding laws; Recommendations, which had binding aims but the methods were left to member states; and Opinions, which had no legal force. In 1952, Jean Monnet became the first president of the High Authority.

On 11 August 1952, the US was the first country recognized the Community and dealt with the ECSC on coal and steel matters, establishing its delegation in Brussels. President Monnet responded by choosing Washington D.C. as the site of the ECSC's first external presence.

During its existence, the ECSC made the ground for the future European Union.

The main motivations leading to create the world's first supranational European Community (ECSC) were:

1. make war between member states impossible;

2. revitalize the whole European economy by starting with the coal and steel sector;

3. and create a single market across the Community.

During the 1950s, it was believed that no country could wage war without a strong, independent coal and steel industry. At the same time, Europe was in severe need of reconstruction, after just ended war, and coal and steel were vital raw materials.

Because West Germany had the potential to dominate economically and demographically by threatening its neighbors’ security, in France there was still fear that Germany when it recovered would attack France. So this problem afforded two possible solutions: either prevent Germany from growing militarily powerful again by curbing its potential for growth; or try to extract a promise from Germany not to take advantage of its military superiority once the balance of power tipped in its favor. The second was not seemed as a solution. On the other hand, the ECSC promised to end allied restrictions on German coal and steel production for industrial use, and thus was of economic value. But more importantly, it enabled Germany to demonstrate its peaceful intentions to its neighbors.

The six Member States of the future ECSC used coal more than any other fuel, and the Ruhr (the richest and most productive coalfields in Europe) was the principal region for coal deposits. At that time, coal accounted for nearly 70 % of fuel consumption in Western Europe. Although the Six together with UK accounted for 20 % of total world coal production. Coal from Eastern Europe was becoming scarcer, while American coal was still very expensive and could be bought only with dollars, which were exactly what Europe lacked.

Steel was the most important raw material for weapons manufacture and for industry in general. Each country developed its own steel capacity in relative isolation and this carried the risk of over-production. The fundamental French concern was that steel production in Germany would be controlled by strong industrial cartels and that the steel would be used for weapons production. The pooling of steel was seen as a means of destroying the cartels’ potential influence and preventing future rearmament. Finally, this necessarily meant that a new Franco-German war would be out of the question [11].

France with US support removed the Saar area from Germany and turned it under complete French economic control. The area returned to German in 1957 but France retained the right to mine from its coal mines until 1981. International Authority for the Ruhr (IAR) controlled production levels, pricing, and sale points, thus ensuring that France received a large portion of the Ruhr coal production at low prices. Upon taking effect the ECSC replaced the IAR.

The Ruhr Agreement permitted the Germans establish the Federal Republic of Germany.

And as I mentioned before, the ECSC was the first international organization that helped establish a common market for coal and steel between states, intended to expand the economies, increase employment, and raise the standard of living within the Community. The market was also rationalizing the distribution of high level production at the same time as ensuring stability and employment. The common market for coal was opened on 10 February 1953 and for steel

on 1 May 1953.

Conclusion

After World War II Europe was harmed in infrastructure and dynamics terms. Trade links had been cut off and any heavy industry or vital manufacturing that had not been destroyed was operating below capacity. A divided Western Europe quickly realized that the path to its survival lay in working together and establishing effective, common institutions, if necessary with American financial, technical and military support.

In order to stimulate economic growth and development the Europe made several efforts, yet not all of them gave a positive effect on European integration.

One of the major sources of the economic restoration of Europe was the Marshall’s Plan. But, even though it played an important role in European cooperation, it was not the realization of the Europeans vision of the united and independent Europe.

At the same time, coal and steel production were important raw materials for industrial use, and thus were economic value. There was not enough coal production for all Europe to satisfy their need, while American coal was too expensive and could be bought only with dollars, which Europe lacked.

After the founding of the European Coal and Steel Community with its supranational impact and thus the function of the real turning-point of the European integration, much more indications of European rapprochement. Nevertheless, it is not wrong to speak of a hard birth of a common European will as a result transformed into the mosaic composed often from many inhomogeneous parts.

The central aim around Monnet can be characterized as setting a European order being immune against the catastrophic nationalist wars that twice had devastated the continent. But this plan could be fulfilled only partly as time did not mature to the higher stage of integration.

The United States wanted create of a strong West European bulwark against the Soviet Union, as in order win the Cold War. French goal was to tie Germany down in a compact that would enable to preserve the strategic French position in Western Europe. German was directed towards a return to the rank of an established power and towards keeping the prospect of reunification as well.

Finalizing this paper, to hold these different programs together were economic stability and prosperity of Western Europe which came after establishing the ECSC.

References:

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