EU History I:

1
EU History I

• France, Germany, Britain and the EC

2
The Honey Moon years

• The late 1950s and early 1960s
• The Commission. 9 portfolios. Assumed
  responsibility for member state participation in
  the General Agreement on Tariffs and Trade (GATT)
• The Council began regular meetings in Brussels
  and located a small secretariat there. It also
  organized the Committee of Permanent
  Representatives (Coreper)
• The Court of Justice began to produce an
  impressive body of case law that would profoundly
  affect the course of European integration
• The Assembly of the European Community met for
  the first time in Strasbourg in January 1958

3
De Gaulle and the Empty Chair Crisis

• De Gaulle comes to power in 1958.
• Rewrites the constitution to create the French V
  Republic.
• De Gaulle promotes two overriding objectives
  economic modernization and an institutional
  framework in which to embed Franco-German
  reapproachment.

4
De Gaulle and the Empty Chair Crisis

• Economic modernization drastic devaluation of
  the franc, and govt expenditure cuts as well as
  taxation hikes.
• Franco-German reapproachment a confederation of
  European states, especially in the context of
  foreign and security policy.
• Fouchet plan collapses 1962. End result
  Fanco-German Treaty of Friendship and
  Reconciliation, 1963.

5
De Gaulle and the Empty Chair Crisis

• The Empty Chair Crisis
• Commission goes too far budgetary system.
• French propose to continue funding the CAP by
  national contributions, others do not act.
• June 30th, the French government recalls its
  permanent representative and announces that
  French officials would no longer participate in
  the Council or its numerous committees.

6
De Gaulle and the Empty Chair Crisis

• In September 1965 De Gaulle announces that France
  would not accept qualified majority voting in the
  Council.
• Luxembourg Compromise and the agreement to
  disagree when vital national interests were
  involved.

7
Keeping Britain OUT

• Three perceived problems in British accession
• Agriculture Britains twin policies of buying
  low-priced food on the world market and paying
  farmers direct price-support were incompatible
  with the principles of the CAP.
• Commonwealth Britains preferential treatment of
  its former possessions, was incompatible with the
  common tariff system of the EC.
• European Free Trade Agreement (EFTA) Britain
  formed the EFTA in 1959, as a counterbalance to
  the EC.

8
Keeping Britain OUT

• De Gaulle, 1963 Vetoes Britains EC application
  for these reasons.
• 1967, Britain applies again for EC membership
  followed by Denmark, Ireland and Norway. De
  Gaulle vetoes Britains application for a second
  time, negotiations are suspended.

9
De Gaulles exit from power (1968/69)

• The empty chair crisis weakened his position
  (French are pro-EU).
• 1968 student uprisings and demonstrations further
  weakened his position. The parliament is
  dissolved and new elections are called for June
  1968, Gaullists win but De Gaulles popularity
  and credibility is diminished.
• April 1969 De Gaulle resigns, having staked his
  presidency on the outcome of two referendums on
  minor administrative issues.

10
Hague Summit 1969 The Spirit of the Hague

• Completion living up to the Treaties own
  resources for the CAP, QMV, direct elections for
  EP.
• Deepening moving forward toward the goal of the
  common market and extending cooperation into the
  foreign policy arena.
• Enlarging letting UK in now that de Gaulle is
  out. Pompidou ties accession negotiations to the
  resolution of the issue of CAP funding (with
  Ireland and Denmark Norway rejects)

11
Hague Summit 1969 The Spirit of the Hague

• The broader environment
• Beginning of broader international economic
  issues
• End of Bretton Woods (gold standard), and dollar
  convertibility.
• Oil Crisis/shortages
• Recession/ high inflation and unemployment
• Combined with internal EU issues
• Weak Commission as a result of the de Gaulle
  fiasco
• Weak economy in France (in contrast to a
  flourishing Germany)
• Pompidou still a staunch intergovernmentalist
  (had been an apprentice to de Gaulle)
• New Chancellor Brandt creates Ost Politik
  Policy, for normalizing Germanys relations with
  the east (raises concerns).
• Compromise
• France opposed to UK joining but weaker
  economically and now mistrusts Germany (needs
  counter balance).

12
Hague Summit 1969 The Spirit of the Hague

• Results-Budget
• 1970- switch to own resources financing
  including the CAP in a plan that closely
  resembles Hallsteins
• Cap financed through levies on agriculture and
  duties on industrial goods imported in the EC,
  plus a small portion (up to 1) of national
  receipts of the value added tax.
• EP given restricted power, they would have an
  opportunity to modify the budget but could
  increase its overall amount only within certain
  narrow limits (about 20 then and 50 now)
• Did not take into account situation of proposed
  enlargement states (causes big problems later on
  with the UK)

13
Hague Summit 1969 The Spirit of the Hague

• Results-Politics/institutions
• Fouchet I and II Plans attempts to incorporate
  foreign policy cooperation and undermine the EEC
  institutions (and QMV) through a Europe of
  States. Fail due to de Gaulles behavior, but
  gives initiative for the following discussions of
  foreign policy cooperation.
• Instead, after Hague Summit another move towards
  foreign policy cooperation through the
  establishment of summitry in 1970. Launching
  European Political Cooperation II (regularly
  scheduled summit meetings between heads of state)
  to be held at least biannually and to be
  organized by the Council Presidency.

14
Hague Summit 1969 The Spirit of the Hague

• Achievements
• --Enlargement (UK, Denmark and Ireland, Norway
  says no)
• --Own Resources financing and the CAP
• --Forward movement on foreign policy cooperation
  (summitry)
• --First plan to create monetary union (Werner
  Plan for EMU (snake)- more later)