Economics of integration Lecture 4 History of European

Economics of integration Lecture 4: History of European integration

What is Europe? • The sense of common identity emerged already in VIII-IX century, initially only in the political, economic and intellectual elites – dynastic links, trade and the catholic church; • The popular sense of European identity was gradually buit, stimulated by common threats (Mongols, Hunns, Tatars, Turks), common religion (christianity) and geographical discoveries of other continents: XV-XIX century; • The Vienna Congress in 1815 (and „The Birth of Europe” by Beethoven); • Early integration attempts in Europe: papal initiatives; • What are the borders of Europe: ? What criterion is decisive: geography, history, religioun? Dariusz K. Rosati 2

Uniting vs dividing factors in Europe a) What unites Europe? • Three sources of European identity (Paul Valéry): Greek philosophy (for science and culture), Roman law (legal system and state institutions), christianity (ethics, axiology, values); • Geographical proximity, • Cultural interchanges and common historical experience; b) What divides Europe? • Languages (50+), • Religions (roman catholics, protestants, orthodox), • Historical divides (Rome vs. Bizancjum), • Long traditioin of conflicts (border conflicts, dynastic conflicts, ethnic conflicts); Dariusz K. Rosati 3

Unification attempts • Large areas of Europe had previously been unified by empires built on force, such as the Roman Empire, Byzantine Empire, Frankish Empire, Holy Roman Empire, Ottoman Empire, Napoleonic Empire; • A peaceful means of some consolidation of European territories used to be provided by dynastic unions; • Less common were country-level unions, such as the Polish-Lithuanian Commonwealth, Austro. Hungarian Empire;

Integration tendencies in Europe: attempts to establish a pan-European political order • • • The Westphalia Order: Peace of Westphalia of 1648 ending the Thirty Years War introduced first modern rules of international order: the principle of non-intervention (cuis regio, eius religio), freedom (limited) of movement of people, resolution of conflicts by compromise between confessions; The Vienna Order: Vienna Congress 1815 ended the era of Napoleonic wars, reintroduced the principle of non-intervention, confirmed dynastic legitimacy of rulers and the domination of dynastic states, and established the principle of balance of powers in Europe; The Versaille Order: the Treaty of Versaille 1918 ended the First World War, replaced the non-intervention principle by the self-determination rule, and dynastic legitimacy by people’s legitimacy, and dynastic states by nation states; The Yalta Order: the Treaty of Yalta 1944 pre-determined the European order after the Second World War (return to nonintervention principle and the balance of powers, division of Europe into two political-military blocks with different state systems: The Yalta Order collapsed peacefully in 1989 -1991. What is next? . . . Dariusz K. Rosati 5

Integration tendencies in Europe after WWII • • • The horrors of two devastating world wars prompted European leaders to undertake efforts to establish a new political order that would prevent new wars and conflicts, and ensure peace and stability on the continent; Preparations: Churchill’s speech (Zurich, 1946) i the idea of „The United States of Europe” (borrowed from A. Briand, 1930), the Hague Congress (1947), the Marshall Plan (1947), The Schumann Declaration (1950), political and security motives vs economic motives; Integration institutions of Western Europe: Council of Europe (1948), OEEC-OECD (1948), NATO (1949), ECCS (1951), EEC, Euratom (1958), EFTA (1960), EU (1992); „Integration” in Eastern Europe: CMEA (1949), Warsaw Pact (1954); From confrontation to détente: Conference on Security and Cooperation in Europe (Helsinki 1974 – three „baskets”, limited right to monitor and control); The (peaceful) collapse of the Soviet block in 1989 -1991 (what reasons? ). Dariusz K. Rosati 6

The Schumann Declaration (9. 05. 1950) (excerpt) • „Europe will not be made all at once, or according to a single plan. It will be built through concrete achievements which first create a de facto solidarity. The coming together of the nations of Europe requires the elimination of the age-old opposition of France and Germany. Any action taken must in the first place concern these two countries. With this aim in view, the French Government proposes that action be taken immediately on one limited but decisive point. • It proposes that Franco-German production of coal and steel as a whole be placed under a common High Authority, within the framework of an organization that will be open to the participation of the other countries of Europe. The pooling of coal and steel production should immediately provide for the setting up of common foundations of economic development as a first step in the federation of Europe, and will change the destinies of those regions which have long been devoted to the manufacture of munitions of war, of which they have been the most constant victims. ”.

The aims of the Schumann Declaration The Declaration had several distinct aims, which it tackled together. • To mark the birth of Europe; • To make war between Member States practically impossible; • To encourage world peace; • To transform Europe by a 'step by step' process (building through sectoral supranational communities) leading to the unification of Europe democratically, including both East and West Europe separated by the Iron Curtain; • To create the world's first supranational institution and the world's first international anti-cartel agency; • To create a single market across the Community; • The single market, starting with the coal and steel sector, would revitalise the whole European economy by similar community processes; • To contribute to growth of the world economy, and especially the developing countries, such as those in Africa.

The „Brussels order” • The Brussels order is a system of ever closer international cooperation in Europe after WWII; • It has been stimulated by the experience of two world wars which made the preservation of peace and security the ultimate goal in Europe; • The neccessary pre-condition was the reconcilliation of France and Germany; • The Brussels system is based on three main pillars: – Common values: democracy, rule of law, human rights and civic rights, rights of ethnic minorities; – Free market, private property, economic cooperation and integration of countries; – Military (defensive) alliance (NATO), based on common values; Dariusz K. Rosati 9

Stages of European integration ECCS (1952); EEC, Euratom (1958); Customs union (1968); Single European Market – „four freedoms” (1987 -1992); European Union established: extension of integration to monetary and non-economic areas, (Maastricht Treaty, 1992 r): – Pillar I: economic, social and monetary union; – Pillar II: common foreign and security policy; – Pillar III: common policy of justice and internal affairs; • Consolidated Union (Lisbon Treaty, 2009) • • • Dariusz K. Rosati 10

Widening of the EU • Territorial widening: – 1973 r: United Kingdom, Denmark, Ireland; – 1981 r: Greece; – 1985 r: Spain, Portugal; – 1995 r: Austria, Finland, Sweden; – 2004 r: Cyprus, Czech Republic, Estonia, Hungary, Lithuania, Latvia, Malta, Poland, Slovakia, Slovenia, ; – 2007 r: Bulgaria, Romania; • Total EU membership increased from 6 countries in 1958 to 27 countries now. Dariusz K. Rosati 11

Possible EU membership in future • Official candidate country status: Turkey, Croatia, Mecedonia; • Candidates to candidate countries status: Albania, Bosnia & Hercegovina, Montenegro, Serbia, Iceland; • Non-candidate but aspiring: Armenia, Azerbeijan, Georgia, Moldova, Ukraine… • Non-candidate and non-aspiring (so far): Russia, Switzerland, Norway… • What are the ultimate frontiers of Europe?