Foreign policy & economic achievements

What happened as early as autumn 1949?

FRG government agreed to sign an agreement with the Allied High Commission - the Petersburg Agreement.

What was the purpose of the Petersburg agreement?

To allow the FRG to join the International Ruhr Authority.

What did the Petersburg agreement gain?

• Dismantling of industry by Allied was radically limited.

• FRG gained right to establish diplomatic relations with other states.

• FRG allowed to join European Council in 1950.

What did the mistrust of some France give way to?

The insight that co-operation could bring economic advantages, and also security.

What happened in 1950?

The French foreign minister, Robert Schuman, suggested a supranational organisation to oversee German and French steel and coal production.

What did Schuman’s initiative become known as?

The Schuman Plan, and led to the foundation of the ECSC in 1951 by its 6 members.

Who were the 6 members of the ECSC?

The FRG, France, Italy and the Benelux states.

What was the ECSC able to do?

Supplant the old International Ruhr Authority, which allowed the FRG to be treated as an equal partner in that area.

What was the significance of the ECSC in the long-term?

It laid the basis for Franco-German understanding after generations of hostility.

How much did the ECSC increase production of coal and steel?

By 44% from 1952 to 1957.

What did the 6 members of the ECSC begin to do?

Take Western integration further and extensive negotiations culminated in the Treaty of Rome.

When was the Treaty of Rome signed?

March 1957.

What did the Treaty of Rome create?

The EEC (a customs union).

What had the EEC managed to do by 1964?

85% of West German agricultural produce came under EEC trade.

What did the EEC aim to do?

• Co-ordinate transportation systems.

• Develop general economic policies.

• Remove measures restriction free competition.

• Assure mobility of labour and capital.