A Unified Europe

A Brief History of the European Union and the European Economic Community

Origins

• The Marshall plan distributed billions of dollars in aid to European nations. The organization responsible for dispensing that aid was the Office of European Economic Cooperation.

• This office facilitated coordinated multi-national (across Europe’s boundaries) of economic goals and policies.

• “We have questions of common economic concern”.

• Council of Europe—began to urge a federation of European states.

European coal and steel community

• First step in removing all barriers of cooperation amongst European states.

• Formed with the Netherlands, Belgium, Luxembourg, France, Italy, and West Germany

European economic community

• The goal was to integrate markets.

• It would eventually be known as the common market.

• Free movement of labor and capital across borders.

Great Britain

• Long resisted joining the common market and frowned upon being tied to any joint economic effort.

• That changed in 1973 when they joined the common market and began to push for a set of common economic policies between nations.

Soaring prosperity

• The 1970’s brought soaring prosperity to western Europe—but there were black clouds…oil consumption.

• This prompted more unity amongst Europe’s nations.

• The goal of a United States of Europe appeared more realistic.

Single European act

• 1985: Goal to eliminate barriers and to create a huge market amongst the member states.

• Eliminate needs for passports and tariffs.

• Now up to 12 nations

Maastricht

• Meeting in Maastricht, Netherlands the heads of the 12 EC countries ratified a momentous treaty.

• Agreed to a common currency (Euro)

• Established a single banking system

• Established a political union (European Union)

• “One currency, one culture, one social area, one environment”. Francois Mitterand

The Euro

• 12/15 states joined interconnecting the economies of Europe.

• Gone were the days of the deutsch, drachma, and guilder…welcome Euro

EUrope

• By 2007, the EU had included former communist territories bringing the total to 27.

• Many larger nations, particularly the economic powers like Germany were anxious about the future and fearing what these economies would do to their own.

Trouble ahead?

Greek debt crisis illustrates perils of unity