4. Liberalization, Convertibility, and the Common Market

Author(s):  
Wendy Asbeek Brusse

This chapter examines how the European Payments Union resolved the problem of currency convertibility and unlocked the potential of trade liberalization, thereby paving the way for the European Economic Community (EEC), which in turn spurred further intra-European trade. It first provides an overview of trade and payments before and immediately after World War II and goes on to discuss postwar approaches to convertibility and liberalization. It then considers the degree, speed, and commitment with which countries opened up their domestic markets to each other's exports under the Trade Liberalization Programme. It concludes with an assessment of Britain's efforts to join a wider free trade area with the members of the Organization for European Economic Cooperation.

1959 ◽  
Vol 13 (1) ◽  
pp. 169-173 ◽  

The Intergovernmental Committee of Ministers engaged in negotiating the proposed free trade area met in Paris, July 24–25, 1958. It was reported that following the session, the chairman of the group, Mr. Reginald Maudling, expressed hope for a definite agreement on most major issues. He stated that if real progress toward an accord were attained, less importance would be attached to the much-discussed proposal to extend to the members of OEEC the 10 percent tariff reductions to be made among the members of the European Economic Community.


Author(s):  
Fernando Guirao

This book explores how the governments of the founding members of the European Coal and Steel Community and the European Economic Community, acting collectively via the European Communities, assisted in the consolidation of the Franco regime. The Six (the Nine after 1973) provided the Spanish economy with a stable supply of raw materials and capital goods and with outlet markets for Spain’s main export commodities. Through both mechanisms, the European Communities assisted Spain’s development and supported the stabilization of its non-democratic régime. From 1950 to the mid-1960s, the Six avoided every sign of discrimination against Spain. By the mid-1960s, they became conscious of the need to promote Spanish exports in order to expand their own exports on the Spanish market. By 1970, Madrid obtained an arrangement with the EEC that, free of any political conditionality, provided ample access to the Common Market while keeping the Spanish market essentially closed. After 1972, the Nine negotiated Franco Spain’s integration into a pan-European industrial free-trade area, in exchange for access to the Spanish market. It was the Spanish cabinet, at the last minute, for protection reasons, who decided to derail the offer. The Franco regime was never threatened by European integration and the Six/Nine managed to isolate negotiations with Spain from mounting political disturbance. In sum, without unremitting material assistance from Western Europe, it would have been considerably more challenging for the Franco regime to attain the stability that enabled the dictator to maintain his rule until dying peacefully at 82 years old.


1958 ◽  
Vol 12 (2) ◽  
pp. 261-263 ◽  

The twelfth session of the Contracting Parties to the General Agreement on Tariffs and Trade (GATT) was held in Geneva, October 17-November 30, 1957, under the chairmanshipof Shri L. K. Jha (India). According to the press, one of the most important aspects of the meeting was the discussion of the Treaty of Rome establishing the European Economic Community. A committee which had been created by a GATT ministerial meeting, October 28–30, 1957, to examine the relevant provisions of the treaty and of GATT and to consider methods of implementing the interrelated obligations which governments had assumed in the two instruments reported to the Contracting Parties that its four subgroups had examined the treaty with respect to tariffs, the use of quantitative restrictions for balance-of-payments reasons, trade in agricultural products, and the association of certain overseas countries and territories with the Community. Agreeing that the preliminary examination had been useful but that a number of important questions remained unsolved, the Contracting Parties decided that the Intersessional Committee, with representation from all contracting parties, should continue the work begun at the session. Following its discussion of the trade aspects of the treaty establishing the European Atomic Energy Community (Euratom) the Contracting Parties decided that further consideration could take place together with examination of the European Economic Community treaty. On another aspect of European economic integration, the Contracting Parties agreed that the Intersessional Committee should follow developments concerning the proposed European free trade area being negotiated in Paris.


1958 ◽  
Vol 12 (3) ◽  
pp. 418-419 ◽  

The Council of the Intergovernmental Committee for European Migration (ICEM) held its eighth session in Geneva from May 7 to 13, 1958. The session opened with the unanimous election of Marcus Daly as Director of ICEM to succeed Harold H. Tittmann. In his report on ICEM activities in 1957 Mr. Tittmann announced that during the year ICEM had moved 194,000 migrants and refugees, bringing the sixyear total to 775,000. The retiring director suggested that the future program of ICEM should include 1) consultations between the emigration countries of Europe and the immigration countries overseas with regard to the planning of migration programs; 2) the closest possible relationship between ICEM and the European Economic Community, and the free trade area if it were set up, which were concerned with the mobility of manpower within Europe; and 3) efforts to make effective activities of ICEM other than transport which helped develop and improve migration and to assure stable financing for them. It was announced that an estimated total of 126,000 migrants would be moved by ICEM in 1958, representing a decrease of twenty percent below the total previously estimated and a decrease of 67,747 from the number of migrants moved by ICEM in 1957. The decrease was ascribed to reductions in immigration programs and stricter selection requirements imposed by receiving countries as the result of economic retrenchment. ICEM expected to spend $34,575,767 in effecting the movements.


1959 ◽  
Vol 13 (1) ◽  
pp. 174-178 ◽  

The European Parliamentary Assembly met in ordinary session from October 21 to 24, 1958, at the House of Europe in Strasbourg. After M. Robert Schuman, President of the Assembly, had opened the proceedings, statements were made on the activities of the European Economic Community (EEC or common market) during the first nine months of its existence and on the activities of the European Atomic Energy Community (Euratom). In regard to the European Coal and Steel Community (ECSC), the Assembly heard a statement by M. Pierre Wigny, Minister for Foreign Affairs of Belgium, in which he noted the present coal crisis in Europe, and the differences between the common market and the free trade area—the one aiming for progressive integration, the other only for facilitating trade. This speaker was followed by M. Paul Finet, President of the High Authority of ECSC, who set out the present situation concerning coal in the common market area. He stated that the situation was undeniably serious and pointed out that pithead stocks had more than trebled, rising from 7 million metric tons in 1957 to 22 million tons in 1958. Belgium and Germany had been particularly hard-hit. He reviewed the action taken by the High Authority in trying to make the marketing rules more flexible and to stabilize production and imports, and appealed to the Parliament for support in these proposals, which had been made to the Council of Ministers of ECSC. A debate ensued on the general subject of the European communities.


1958 ◽  
Vol 12 (3) ◽  
pp. 416-417 ◽  

The European Parliamentary Assembly held its second meeting in Strasbourg, May 13 and 14, 1958, under the chairmanship of Robert Schuman. Mr. Paul Finet, President of the High Authority of the European Coal and Steel Community (ECSC), presented the sixth general report on ECSC activities. Speaking of developments which the High Authority had to take into account in planning its future action, Mr. Finet referred to the direct exposure of the coal and steel industries to the consequences of an economic recession, the increasing competition and falling prices on the steel market, the need for stabilization of coal production and consumption, and the desirability of encouraging technical research and increasing safety in the mines. Turning to the matter of ECSC's cooperation with the European Economic Community and the European Atomic Energy Community, Mr. Finet pointed out that the absence of a decision concerning the seat of the European institutions constituted a major obstacle, but that the High Authority was ready to contribute toward further integration of the communities. Regarding a free trade area, the High Authority considered it essential that ECSC's power of action within the community should remain unimpaired. The High Authority believed that the price-fixing system prevailing within the European Economic Community called for the adoption of similar rules within the free trade area and that the granting of governmental subsidies should be prohibited.


Author(s):  
Jeffrey Vanke

This chapter examines how policy towards the European Economic Community (EEC) fitted in with French leader Charles de Gaulle's broader European and international objectives and how the international constraints on his certain vision of France gave rise to his evolving, uncertain idea of Europe. Having denounced the Treaty of Rome before coming to power in 1958, de Gaulle ensured the EEC's survival by undertaking financial reforms in France and warding off Britain's effort to negotiate a wider free trade area. He linked these initiatives to implementation of the common agricultural policy (CAP). The chapter also considers de Gaulle's proposal for an independent and intergovernmental European Union and his role in the so-called Empty Chair Crisis of 1965–6. Finally, it discusses the impact of de Gaulle on the course of European integration.


2011 ◽  
Vol 20 (4) ◽  
pp. 419-434 ◽  
Author(s):  
LAURENT WARLOUZET

AbstractThe failure of the Free Trade Area (FTA), a British ‘Greater Europe’ free-market project, has often been contrasted with the European Economic Community (EEC)'s rapid success. However, this article claims that the EEC's success was neither logical nor automatic. The FTA project was not bound to failure, but could easily have become the principal institution for European co-operation. Moreover, the French leader, Charles de Gaulle, played such a prominent role in the EEC that he could be described as a new ‘Father of Europe’. Without the EEC, France would certainly have been forced to reach agreement on the FTA, but conversely, without de Gaulle, the EEC would probably have been diluted into a larger FTA.


2020 ◽  
Vol 2020 (10-3) ◽  
pp. 70-81
Author(s):  
David Ramiro Troitino ◽  
Tanel Kerikmae ◽  
Olga Shumilo

This article highlights the role of Charles de Gaulle in the history of united post-war Europe, his approaches to the internal and foreign French policies, also vetoing the membership of the United Kingdom in the European Community. The authors describe the emergence of De Gaulle as a politician, his uneasy relationship with Roosevelt and Churchill during World War II, also the roots of developing a “nationalistic” approach to regional policy after the end of the war. The article also considers the emergence of the Common Agricultural Policy (hereinafter - CAP), one of Charles de Gaulle’s biggest achievements in foreign policy, and the reasons for the Fouchet Plan defeat.


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