The European Union. Current State-Members.
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The ‘EURO’ area
Main notions of economic integration
Treaty of Rome (1957)
It was a vital instrument of Community solidarity and helped restructure the declining Western European agriculture.
---Special Anglo-American relationship was becoming less important (Macmillan-Kennedy meeting in 1962).
---UK risked political isolation by remaining outside the EEC.
---Rapid growth in the EEC market and lack of any free trade links with EFTA.
---However, UK had missed the boat! Suspicious of UK entry, DeGaulle vetoed twice (1963, and 1967) the British requests for membership for fear that this would dilute the EEC into a free trade area and make it subservient to American foreign policy interests. Only after DeGaulle, Pompidou allowed it to join as a counterweight to Germany’s inevitable future political and economic domination in the Community (1973 British, Irish and Danish entry).
---- “German Ostpolitik”-normalization of relations with Eastern Europe. Goal: reunification, unachievable without the collapse of the Soviet Union. But by agreeing to a single currency (Werner Report), Brandt of Germany demonstrated that it did not ask for supremacy in Europe. Balancing of aspirations towards East Germany “with a renewed dynamism in West Europe.”
--- Enlargement in 1973, creation of a more financially independent Community achieved through “own sources” consisting of custom duties, agricultural levies and a % of VAT tax.
-- Failure of monetary integration and failure of deeper trade integration.
-- Break-down of the Bretton Woods Exchange Rate System (1958-1971).
-- Community in a Flux: Euro-pessimism due to 1) Failure of monetary integration, and 2) failure of deeper trade integration.
-- Major differences in economic performances and policies and general level of stagnation, failure to develop a common energy policy towards Arab countries and failure to develop common set of economic policies to deal with the stagflation which wrecked the possibility of a common monetary union by 1980 despite the projection of the Werner Report (1970).
-- Resurgence of protectionism-took the form of non-tariff barriers mostly directed against Japan and NICs, especially in agriculture and textiles.
-- Increasing recourse to government aid, and technical barriers to trade were key elements of this new tide of protectionism due to strong social resistance to economic adjustment. “Creation of national champions.”
Folks as discussed please use the following essay titles to guide your note taking process, each table will be assigned a title tomorrow to outline