Econ of EU History

Aftermath of WWII

War destroyed infrastructure, especially in Germany. There was a pressing need for European Integration. Argument about minimalism vs. maximism.

13 billion was spent on the European Recovery Program

And there were many efforts to stop the spread of Soviet Communism to Western Europe

What systems were created directly after WWII

Financial Incentives to cooperate led to the creation of:

Organization for European Economic Cooperation (OEEC)

Organization of Economic Cooperation and Development (OECD)

Council of Europe (1949): designed to protect human rights.

1950s: Jean Monnet

Proposed idea for supranationally regulated coal and steel market across Europe.

Because these were essential for producing weapons for war.

1950s: Robert Schuman

French Foreign Minister. Monnet presented his idea and he proposed the European Coal and Steel Community (ECSC)

1950s: The Treaty of Paris

Created the ESCB in 1951 with “The Original 6”

France, West Germany, The Netherlands, Luxembourg, Belgium, Italy

1950s: Treaties of Rome

1957: The European Economic Community (EEC) was created. This included the CAP

This was created to establish a European Common Market (ECM) which envisioned 4 economic freedoms

Free movement of goods, capital, services, and persons across European borders and beyond national regulations

1960s: The Luxembourg Compromise

The member states switched to a principle of majority voting, however, if a state felt threatened, they could switch back to unaminity.

This happened because when they tried to change to majority voting and the French opposed, there was no way to change the system. Hence, the compromise

1960s: The Hague Summit

Discussed 3 EU principles

Deepening: discussing how to open cooperation to other areas in an economic sense. 

Widening: Expanding membership to EU (Denmark, UK, Ireland)

Completing: Completing the tasks that were agreed upon in the previous treaties

1970s: The First Enlargement

Added the UK, Denmark, and Ireland.

Some exceptions were created for the new countries

1980s: The Second Enlargement

Added Greece to make EU-10

another less developed country, but marked that the EU was prioritizing rapid integration

1980s: Margaret Thatcher

A figure in the UK government with strong “Euroskeptic” views

Started the thinking that European institutions were too bureaucratic and costly

The Origin of the “Brexit”

1980s: Single European Act (SEA)

Created in 1986 to make a more unified EU

New policies that set deadlines for and created policies for innovation and cooperation

Creation of the largest and wealthiest market in the world

1980s: 3rd Enlargement

Added Portugal and Spain to make the EU-12

1986.

The Collapse of Communism and the Berlin Wall

1989-1991: Former Communist countries shed their past and held democratic elections

New States sought entry and cooperation into the European Community

1990s: Maastricht Treaty. A lot of stuff

Denmark intitially rejected but it was approved in 1992. Changed the European Community into the EU.

Created Policies for Economic Community (Single Market, majority voting, Supranationalism).

Common Foreign and Security Policy (intergovernmentalism, common defense policy).

Justice and Home Affairs (Asylum, immigration, police cooperation and customs)

Economic and Monetary Union to be implemented in 1999: single currency and single monetary policy

1990s: The EU 15

1995: Added Sweden, Finland, Austria

1990s: The Treaty of Amsterdam

1997: Focused on Economic Globalization, Global Security, and Ecological Problems

Focused on rights regarding gender discrimination, nondiscrimination, and data privacy

Also included the Schengen Agreement

2000s: The Treaty of Nice

2001: Goal was dealing with all the new applications for the EU.

Eur Parliament capped at 732 members, commisioners capped at 27, more power to EC President

2000s: The EU 25, then EU 27

2004: 10 countries added

2007: Bulgaria and Romania

2010s: EU 28

2014: Croatia

Brexit

2020: Brexit occurred because a majority of UK voters in the 2016 referendum supported leaving the European Union (EU), driven primarily by concerns over sovereignty, immigration control, and the desire for greater economic independence.