Peace and stabilityin a divided Europe

by economic integration

Helene BannerAdrien CrosLaura Gores

Structure

• On the way to the Schuman Plan:

Vision and realisation of the European economic integration

• Economic integration in the context of the cold war

• Monetary Cooperationas Guarantor of Peace and Stability in a Divided Europe

On the way to the Schuman Plan: Vision and realisation of the

European economic integration

Structure

I. Peace as an impetus for the European idea of economicintegration

A) Approaches to economic integrationB) Movements of European visionsC) The prehistory of the Schuman Plan

II. The Schuman Plan as the realisation of European integration ideas

A) The American influence on the European economicintegration

B) From Monnet‘s view of Europe to the ECSC

I. Peace as an impetus

for the European idea

of economic integration

A) Approaches to economic integrationB) Movements of European visionsC) The prehistory of the Schuman Plan

A) Approaches to economic integration

German Costums‘ Union (1834-1870)Deutscher Zollverein

A) Approaches to economic integration

• Friedrich List (1789 – 1846)

“Trade agreement and

political agreement are twin

sisters, one cannot be born

without the other following.”

A) Approaches to economic integration

• Steps of economic integration

1st – Unrestricted exchange of goods2nd – Free movement of production factors3rd – Integration of a common economic

policy by supranational institutions4th – Political integration

A) Approaches to economic integration

• Economic Union between Belgium and Luxembourg (1922)

• Benelux (1944)

Their efficient ideas and institutions of Economicintegration were readopted to the Roman Treaties in 1957.

B) Movements of European visions

• The Paneuropean UnionGraf Coudenhove-Kalergi (1894-1972)

• „Union European Movement“Duncan Sandys (1908-1987)

! Congress of The Hague, May 1948

B) Movements of European visions

• European movements in Eastern EuropeJean-Claude Juncker: „50 lost years“

• Winston Churchill, 19th september 1946:

“What is this sovereign remedy? It is to recreate the European fabric, or as much of it as we can, and to provide it with a structure under which it can dwell in peace, safety and freedom. We must build a kind of United States of Europe.”

C) The prehistory of the Schuman Plan

• International Steel Community (1926)

• Coal Convention (1937)

• International Authority for the Ruhr (1949)

II. The Schuman Plan as therealisation of European integration ideas

A) The American influence on the European economicintegration

B) From Monnet‘s view of Europe to the ECSC

A) The American influence on the European economic integration

• „If there‘s a Europe, it is only because theAmericans want it.“ Norman Stone

• Impulses: Truman doctrine, Marshall plan

• Aim: Stability in

Western Europe

B) From Monnet‘s view of Europe to the ECSC

• France‘s interests:– Economy: need of coal and steel after the

breakdown of the Ruhr Ruhr AuthorityAuthority–– PeacekeepingPeacekeeping: : avoidavoid a a threatthreat byby GermanyGermany–– EffectivenessEffectiveness: : criticscritics on on thethe CouncilCouncil of of

Europe Europe

• Germany‘s interest: a sovereign, democratic West German state

B) From Monnet‘s view of Europe to the ECSC

“The member States bind themselves to take all general and specific measures which will assure the execution of their obligations under the decisions and recommendations of the institutions of the Community, and facilitate the accomplishment of the Community’s purposes.”

Article 86, ECSC

B) From Monnet‘s view of Europe to the ECSC

• Konrad Adenauer“In his personal letter to me Schuman wrote that

the purpose of his proposal was not economic, but eminently political. In France there was a fear that once Germany had recovered, she would attack France. […]

Schuman's plan corresponded entirely with the ideas I had been advocating for a long time concerning the integration of the key industries of Europe. I informed Robert Schuman at once that I accepted his proposal whole-heartedly.”

Economic integration in the context of the cold war

Structure

I - Integration at the beginning of the cold war – A political tool?

II - Europe growing to a recognized economic actor in the world?

III - Europe on the way to unity beyond the blocks? EEC and COMECON

I - Integration at the beginning of the cold war – A political tool?

- United States of Europe for stability

- Maintaining Europe in the western Block

- Element of the Blocks’ reaction system

- Confirming democracy

II - Europe growing to a recognized economic actor in the world?

- In Negotiations, Europe affirms its economic weight and own identity

- Expansion of Abilities and Competitiveness

- Reduce of external dependence

III - Europe on the way to unity beyond the blocks? EEC and COMECON

Leading Point: Study of the Evolution of the mutual understanding along the time line towards Appeasement

- Ground Zero: Denying each other

- Parallel Development to override the other

Changes in the end of the 60’s

- Soviet recognitions of EEC’s efficiency>End of the mutual denying

- Beginning of A Cooperation based on mutual concrete economic interests

> Appeasement by global integration

- But: Practical economic results limited

Monetary Cooperationas Guarantor of Peace and Stability

in a Divided Europe

Structure

1 From the Transatlantic System to European Cooperation –Cold War Logics and Economic Considerations

1.1 Bretton Woods – Dissolution of the Transatlantical Consensus1.2 Towards the Werner Plan – Rise of Contending Conceptions

2 EMS to Delors - Towards an asymmetrical design of EMU

2.1 EMS to Delors – which Institutional Design for MonetaryCooperation?

2.2 Asymmetry - possible source of instability?

1 From Transatlantic Consensus to European Cooperation

– Cold War Logics and EconomicConsiderations

1.1 Bretton Woods – Growing Distance from theTransatlantical System

„To date, foreign countries and their nationals have acquirednearly $ 20 billion in dollar accounts. This, in effect, is a demandloan to us of $ 20 billion which has allowed us to pursue policiesover the years that would have been utterly impossible had not

the dollar been a key currency.“

Secretary of Treasure Douglas Dillon to President John F. Kennedy

1.2 Towards the Werner Plan – Rise of Contending Conceptions

Context of non-implementation

- economic turbulences of 1970‘s- Monetarists vs. Economists

locomotive theory coronation theory‚The snake in the tunnel‘

Werner Plan (1970) of Economic and MonetaryUnion by 1980

2 EMS to Delors - Towards an asymmetrical Design of

EMU

2.1 EMS to Delors – which Institutional Design for MonetaryCooperation?

The Delors Report (4/1989)

Commission President Jacques Delors

2.2 An asymmetrical EMU – possible source of instability?