Module Six: Britain and the EUPart 1

Module Objectives

• Outline the development of the EEC and EU including key treaties.

• Evaluate reasons why the UK did not join the early union.

• Understand why there was reluctance by some EEC members to admit the UK before 1972.

• Compare the Labour anti-European policies with the later Conservative Euroscepticism.

• Describe the current positions of the main parties and divisions within them over Europe.

• Discuss the issues that have affected relations between the UK and EU since the 1990s.

What is the European Union?

• A unique economic and political partnership between 27 democratic European countries.

What are its aims?

• Peace, prosperity and freedom for its 498 million citizens – in a fairer, safer world.

The EU symbols

The European flagThe European anthem

Europe Day, 9 MayThe motto: United in Diversity

European Flag

was designed by Arsène Heitz and Paul Lévy in 1955.

European Anthem

• The popularly used European anthem is a work of legendary German composer Ludwig van Beethoven.

• It is his 9th Symphony called ‘Ode to Joy’.

• Listen on youtube:

http://www.youtube.com/watch?v=vXuhvzbQ5EI&feature=related

The European Union• http://www.youtube.com/watch?v=-lol93tQL1c&feature=fvw

Origins and Expansion• The immediate background to the creation of the

European Economic Community (EEC) was the end of WWII (1939 - 1945).

• The principal motivation of those who created the EEC was:– To prevent any further wars in Europe.– To enable post-war economic reconstruction and development.

– To unify Western Europe in the context of the Cold War.

– To provide a solution to “the German problem”.• In their aim to prevent war, the founders of the

EEC made it a key aim to make European countries partners.– To create common bonds and shared interests so that war would become unthinkable.

– EEC aimed to promote Franco-German cooperation.

Why form a partnership for cooperation?

• WWII changed the geo-political situation in Europe by creating a political vacuum.

• It led to the eclipse of Europe as 2 new superpowers emerged: the USA and the USSR.

• This brought forth a new era in global politics: The COLD WAR.

• Europe was divided by the Cold War– Western Europe sided with USA in hopes of protecting

themselves from the spread of Communism.– Eastern Europe sided with USSR.– Germany was divided between both superpowers - The USA and

its Western allies controlled West Germany, while the USSR controlled East Germany.

• The reasons for the German split had to do with the “German problem” - how Europe could ensure that Germany would not rise to power and create war again?– Solution: increased European cooperation - Germany and

France became inter-dependent through the Schuman Plan.– Schuman Plan - designed to promote economic recovery in

France and West Germany by placing coal and steel under joint authority.

First Steps• 1948 - BENELUX countries created a Customs Union -

abolishing internal customs controls and setting a common external tariff (CET).

• Schuman Plan - proposed by Jean Monnet, Robert Schumann and Konrad Adenauer: coal and steel production in France and West Germany placed under a common High Authority.– The idea was that this would “not merely [make war]

unthinkable, but materially impossible” - Schuman– The High Authority was a supranational organization: it was

independent of national governments.– This required member states to surrender sovereignty in

some areas to the supranational authority.• 1952 - European Coal and Steel Community (ECSC) came

into existence as a result of the 1951 Treaty of Paris.– There were six participating countries: France, Germany,

Italy and the Benelux countries.– Its first President was Jean Monnet.

• 1955 - Messina Conference held to discuss future of European Integration.

• 1957 - two Treaties of Rome which created the European Economic Community (EEC) and EURATOM (the European Atomic Energy Community).– Aim was “to lay the foundation of an ever-closer union

among the peoples of Europe”.

The European Union: 500 million people – 27 countries

Member States of the European UnionCandidate countries

• 1957 - Six original members: France, Germany, Italy and BENELUX

• 1973 - UK, Germany & Denmark

• 1981 - Greece• 1986 - Spain &

Portugal• 1995 -

Austria, Finland and Sweden

• 2004 - CEEC countries (Poland, Czech Republic, Hungary, Estonia, Latvia, Lithuania, Slovenia & Slovakia.

• 2007 - Romania & Bulgaria

History of entry into the EU: The six enlargements

Initial reluctance to join the EU• Politicians of both main parties felt that British ties

to the Empire and Commonwealth were more important to the economic well-being of the UK than the European market.

• UK also believed it had a “Special Relationship” with the USA - might be compromised by EEC entry.– Sinews of Peace Address at Westminster College, Fulton, Missouri, in March 1946

(more commonly called the Iron Curtain speech): I come to the crux of what I have traveled here to say. Neither the sure prevention of war, nor the continuous rise of world organization will be gained without what I have called the fraternal association of the English-speaking peoples. This means a special relationship between the British Commonwealth and Empire and the United States. - Winston Churchill

• Some reluctant to be involved with any organization in which France and Germany played leading roles.

• The EEC would have supranational powers, and this would limit the UK’s sovereignty.

• Some on the left were suspicious of the EEC’s “capitalist club” intentions - fear that protection of workers would not have priority.

• “Island mentality” - UK seeing itself as geographically and culturally separate from Europe, sharing a common language with USA, and not sharing the experience of defeat and occupation during WWII.

• Adjusting to the decline of empire and loss of influence in world affairs was tough.– Accepting membership in EEC meant accepting a reduced role

in the world.

A change of heart?• By the 1960s, membership to the EEC came to be

seen as something that would be an advantage to British industry and manufacturers.

• In 1960 PM Harold Macmillan gave his famous “Winds of Change” speech on African de-colonization.– This meant that the UK would lose much of its

relationship with the Commonwealth market.– Would have to search elsewhere for markets.

• Thus, the UK changed its attitude towards the EEC:– Applied for membership in 1961, but was vetoed by

French President Charles De Gualle.– Applied again in 1967, again vetoed by De Gaulle.– Applied again in 1971, successful largely because De

Gaulle was gone.• 1972 - UK PM Edward Heath signed the Treaty of

Accession and Britain finally became a member of the EEC on January 1st 1973.

Why France vetoed UK Accession into EU

Reasons why De Gualle vetoed UK’s accession to the EU:

• De Gualle wanted an EEC constructed around an alliance between France and Germany and he saw the UK as a potential rival.

• Resentful that he had not been given equal status at the wartime summits of the Allied powers.

• Resented the UK’s lack of enthusiasm and support for the early moves towards European integration in 1950s.

• Distrust of UK’s “special relationship” with USA.• Though the British trading pattern was different

from that of other European countries and that the UK overvalued its relationship with ex-colonies.

1975 Referendum• Politicians in UK were still sceptical of UK’s

entry into EEC, felt there should be a referendum to gain approval of general public.

• Labour Party was divided over the issue, but Labour PM Harold Wilson agreed to hold a referendum when he came to power in 1974.– Members of Wilson’s Cabinet took opposite sides

during the campaign that preceded the referendum.– Wilson suspended collective responsibility on the

issue.– Referendum was held - produced 65% turnout and 67%

voted in favour of remaining in the EEC.– Political maneuver: Wilson promised to renegotiate

the terms of entry if Labour was elected.– This allowed Wilson to play the “patriotic card”

against the Conservatives, and to divert attention away from divisions within the Labour leadership.

Conservatives and Labour Views on Europe

• Europe has always been an issue which cuts across party lines: there are Eurosceptics and pro-Europeans in both main parties.

• In the 1970s it was the Labour Party which was more divided on Europe.– Labour divided on referendum to remain in EEC (1975).– Conservative party campaigned for a “Yes” vote to

referendum (1975).• In the 1990s it was the Conservative Party which was

more divided on Europe.– Major had difficulty getting the Commons to approve the

Maastricht Treaty.– Labour Party had already begun “modernizing” in the 1990s

and became more pro-Europe.• Interestingly, it was the left of Labour that were anti-

European in the 1970s and the right of the Conservative Party that was Eurosceptic in the 1990s.– 1970s left/Labour opposed joining because it was viewed as

a “capitalist club”– 1990s Conservatives were Eurosceptic because they though

the EU social legislation was socialist.• Both left/Labour anti-Europeans of 1970s and

Conservative Eurosceptics in 1990s shared a common concern about UK loss of sovereignty to EU institution.

The UK and the EU since 1979

UK attitude towards EU underwent a major change when Margaret Thatcher became PM in 1979:– Fought for rebate from EU, successfully arguing that UK was

paying too much into EU budget. Fountainbleau meeting.– Tried to renegotiate the UK’s involvement in the Common

Agricultural Policy (CAP) but was unsuccessful.– Signed the Single European Act (SEA) in 1985 - created a

single European market; also increased the use of Qualified Majority Voting (QMV) within the European Council.

– UK did not initially join the Exchange Rate Mechanism (ERM) in the 1980s - this became a catalyst for division in Conservative Party.• When UK did eventually join ERM, the £ was devalued on Black

Wednesday, and the public lost confidence in the economic competence of the Conservatives.

– Maastricht Treaty proved contentious - preparations were made to move towards Economic and Monetary Union (EMU) through stages from the completion of the Single Market to the est. of the European Central Bank (ECB), and finally to the adoption of the single currency (the Euro).• Uk adopted a “wait-and-see” policy

– Major’s government refused to sign the Social Chapter of Maastricht Treaty.• It laid down working conditions and industrial employment

practices.• Major believed it was “socialism through the back door”.

Changes since 1997• Tony Blair immediately signed the Social Chapter of the

Maastricht Treaty when he came to Office in 1997.• Gordon Brown (as Chancellor) prepared the way for the

possibility of Britain joining the single currency (EURO) by giving the Bank of England independence to set interest rates.

• However, the promised referendum on the single currency was put off until Brown’s “Five Economic Tests” were met:– Sustainable convergence between the UK economy and those

economies of the Euro zone.– Sufficient economic flexibility. – A positive impact on investment in the UK.– A positive impact on financial services.– A positive impact on employment.

• The referendum was never held, some say, because opinion polls showed that the public would vote “No” to the adoption of the Euro, and this would have a negative impact on the Labour Party.

• Since the 2010 General Election, the issue of EU membership and the adoption of the Euro has been moved “off the agenda”.

The Future

It is likely Turkey will be next to join as they have tried

to become a member since 1987.

EU population in the worldPopulation in millions, 2009

500

1339

128 142

307

EU China Japan

RussiaUnited States

The area of the EU compared to the rest of the world

Surface area, 1 000 km²

EU China Japan

RussiaUnited States

16 889

9327 9159

4234

365

The EU – a major trading power

Share of world trade in goods (2007)

Share of world trade in services (2007)

Others53.2%

EU17%

United States14.5%

Japan5.8%

China9.5%

Others40.6%

EU28.5%

United States18.2%

Japan6.8%

China5.9%

Share of world trade of the EU compared to the rest of the world

How big are the EU countries?

Surface area in 1 000 km²France

Spain

Sweden

Germany

Poland

Finland

Ita

lyUnited Kingdom

Romania

Greece

Bulgaria

Hungary

Portugal

Austria

Czech Republic

Ireland

Lithuania

Latvia

Slovakia

Estoni

a Denmark

Netherland

s Belgium

Slovenia

Cyprus

Luxemburg

Malta

544

506

410

357

313

305

295

244

230

131

111

93 92 83 77 68 63 62 49

43

43 3430

20 9 3 0.3

How many people live in the EU?

Population in millions, 2009500 million total82.1

64.4

61.6

60.1

45.8

38.1

21.5

16.5

11.3

10.6

10.8

10.5

10.0

9.3

8.4

7.6

5.5

5.4

5.3

4.5

3.3

2.3

2.0

1.3

0.8

0.5

0.4

France

Spain

Sweden

Poland

Finland

Ita

ly

United Kingdom

Romania

Greece

Bulgaria

Hungary

Portugal

Austria

Czech Republic

Ireland

Lithuania

Latvia

Slovakia

Estoni

aDenmark

Netherland

s Belgium

Slovenia

Cyprus

Luxemburg

MaltaGermany

GDP per inhabitant: the spread of wealth

Lithuani

a

2008 GDP per inhabitantIndex where the average of the 27 EU-countries is 100

271

137135123 11

8 114122 117 115116 107

101103 100 95 94 91 80 76 76

68 637261

565846 40

Luxembourg

Irelan

dNetherland

sAustri

a Denmark

Belgium

Sweden

Finland

Germany

France

Italy

Spain

EU-27

Cyprus

Greece

Sloveni

a

Malt

aPortuga

l Estonia

Hungary

Slovaki

a Latvia

Poland

Romania

Bulgari

a

United Kingdom

Czech Republic

23 official languages

Homework• Read pp. 222 - 229.• Complete Activity M6:1 on p. 226.

• Complete Activity M6:2 on pp. 228 - 229.