9.10 - The European Union

Formation of the European Union

Historical Context:

• At the beginning of European history, Europe was largely united under the Roman Catholic Church, both socially and politically.

• However, the Protestant Reformation fragmented Europe, leading to centuries of conflict.

• By the 20th century, after two devastating world wars, European states sought a way to prevent future conflicts and foster peaceful cooperation.

Steps Toward Economic Cooperation:

• The push for European unity initially began with economic cooperation, largely influenced by the Marshall Plan after World War II.

  • The United States invested $13 billion in European reconstruction, with the stipulation that the funds be used cooperatively, promoting peace and collaboration among European states.

• Organization for European Economic Cooperation (OEEC):

  • Established to organize the disbursement and spending of Marshall Plan funds, the OEEC was the first significant step toward economic cooperation in Europe.

• European Coal and Steel Community (1951):

  • Formed by six states (France, West Germany, Italy, Belgium, the Netherlands, and Luxembourg) to integrate their coal and steel industries.

  • The economic union was profitable for all involved, and the idea was that economic ties would make war between member nations unthinkable.

• Common Market (1957):

  • Building on the success of the Coal and Steel Community, the six nations signed a treaty to expand their cooperation to include goods beyond coal and steel, creating the Common Market.

  • Over time, more European nations joined, and trade restrictions between these states were significantly reduced, leading to greater economic integration.

Creation of the European Union:

• Maastricht Treaty (1993):

  • The Maastricht Treaty officially established the European Union, initially signed by 12 countries.

  • The EU represented not only economic integration but also had significant political implications.

• Political and Economic Integration:

  • The European Union created seven bodies to make policies for member nations, including a parliament, an executive body, and a group of ministers to address issues like defense and foreign policy.

  • The introduction of a common currency, the Euro, further unified member states, replacing national currencies like the French Franc and the Italian Lira.

Challenges and Tensions:

• Balancing National Sovereignty vs. Union Responsibilities:

  • A key challenge within the EU is balancing national sovereignty with the responsibilities of being part of a unified political and economic system.

  • National sovereignty refers to each state's desire to maintain its own identity and interests, while the union offers the benefits of collective strength and cooperation.

• Brexit (2016):

  • The most recent and visible manifestation of this tension was the United Kingdom's exit from the EU, known as Brexit.

  • Factors driving Brexit included dissatisfaction with the EU's favorable policies towards immigration and a long-standing discomfort with EU membership.

  • The UK officially left the EU in 2020, highlighting the ongoing tension between the desire for national independence and the benefits of EU membership.