The European Rescue of the Franco Regime, 1950-1975

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.

Author(s):  
Fernando Guirao

Chapter 5 deals with the negotiations between the EEC and Spain from September 1967 to June 1970. Madrid, the weaker party, achieved its requests: first, that Spain’s main export commodities were not discriminated, particularly due to the Common Agricultural Policy; second, that once Spanish industry could export, Spain would have generous access to the Common Market; third, that there should be no reciprocal requirement that Spain open its domestic market to the Six; and finally, that there would be no political conditionality attached. The 1970 Agreement guaranteed lucrative trade preferences for the Spanish economy on the Common Market and also implicitly committed the Six to maintain political stability in Spain. Spaniards persuaded the Six that economic development would make the Spanish political regime evolve towards governance comparable to the rest of Western Europe.


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.


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.


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.


Author(s):  
Fernando Guirao

The Nine failed to establish an industrial free-trade area with Spain and thus to gain access to the Spanish market, the largest west European industrial market outside their direct influence. The decision of the Council of Ministers of the European Communities, in October 1975, to suspend FTA negotiations with Spain, without denouncing the 1970 Agreement, meant the ultimate success of the Spanish government’s politico-economic strategy, the last episode of the European rescue of the Franco regime. The EC Council decision might have been inevitable in terms of public opinion and democratic morality, but it meant to permit Madrid to retain full control over the country’s import policy while fully exploiting the export prospects offered by the 1970 Agreement. In the end, the decision was detrimental for the overall interests of all the parties involved, whether the Spanish population or Western Europe. The final section of this book invites economic historians to estimate the costs of the Spanish EEC policy concerning the inefficient allocation of resources, weak technological transfer, lesser accompanying investment, and limitations to total-factor-productivity increases. Political historians, in turn, should explore what specific interests explain, in each case, why, if official Spanish trade practices in export promotion and import restriction gave the Six every incentive to denounce the 1970 Agreement, apart from obvious political reasons, they did not do so. Finally, scholars dealing with Spanish EEC-membership negotiations should determine the extent at which the Community experience over the 1970 Agreement explains Community attitudes towards some Spanish demands after 1979.


WARTA ARDHIA ◽  
2010 ◽  
Vol 36 (4) ◽  
pp. 317-328
Author(s):  
Hartati Yusminah

Seeing of free trade in several continental markets such as of the establishment of the European Economic Community (EEC). The Asian Pacific Economy (Pasific Economy Community) NORTH America Free Trade Are (NAFTA), ASEAN Free Trade Area (AFTA), ASEAN free market with China is indirectly effect on determination of Indonesian strategy in exploting oppurtunities commodities what can penetrate the international market.With the opening of free markets Asean plus China which commenced in the year 2010 was the air transport sector has an important role in supporting efforts to increase exports, especially in the provision of adequate transport service.Soekarno Hatta airport is one of the airport that serves as the gates way of trade via air transport network, that plays an important role in supporting and smoth export and import of commodities.


1993 ◽  
Vol 2 (3) ◽  
pp. 285-301 ◽  
Author(s):  
Bernardo M. Villegas

After summarizing the major features of the ASEAN labor market and patterns of labor migration in Asia, the article describes the origins and current status of the ASEAN Free Trade Area (AFTA) and its main mechanism, the Common Effective Preferential Tariff (CEPT) Scheme. Projections are offered on the effects on regional trade after AFTA. Though the volume of intra-regional trade may be less significant than in the cases of Europe or North America, AFTA is likely to have a significant effect on promoting a regional division of labor. Although AFTA is limited to the manufacturing sector, in the future the Philippines may find a niche in services requiring “knowledge workers” such as accountants and computer analysts.


2014 ◽  
Vol 60 (No. 1) ◽  
pp. 31-48
Author(s):  
E. Cihelková

The European Union pays a primary attention to the development of neighbouring relations; it means the relations with countries in the immediate vicinity of its external borders. This is done for the sake of prosperity, stability and the spread of democratic values in the world. In this sense, a kind of the privileged region have always created the states of the Southern and Eastern or eventually Northern Mediterranean with which the European Economic Community began to develop cooperation immediately after its formation. Then since the mid-1990s, the EU set out a goal to create a Euro-Mediterranean free trade area and thus to move closer to the interlacing of the two entities in the form of integration. The outline of the process of development of Euro-Mediterranean relationships (including the changes of bilateral approaches and the conditioning factors) is the objective of this article. It is divided into three sections, which cover different stages of the development of these relationships over time and escalate in terms of two-way approaches to a new quality of cooperation (including the three stated research questions). The result of these relationships could become a Euro-Mediterranean Alliance that is outlined as a differentiated form of multilateralism in the conclusions of the paper.


Sign in / Sign up

Export Citation Format

Share Document