Integration and Disintegration Before 1945

Integration Studies

1. Integration and disintegration before 1945

One of the most powerful models of Integration was The Zollverein (The Customs Union). In 1834 The Prussian dominated customs union.

The idea of nationalism suggests a clear barrier to bigger processes of integration.

The economic integration has to do with the creation of common European market, that would transcend the national confines of Customs Unions, but with 2 differences> bilateral nature and the lack of institutions and irrevocable commitment .

John Robert Seeley saw the integration as a prospect of a United States of Europe.

The disintegration started with ideas about the preferential trading system, proposed by France, and which received a discouraging response from Britain and Germany. And the failure to develop a coordinated approach to the crisis in Eastern Europe gave Germany an opportunity to develop bilateral agreements.

Later, due to the collapse, British officials looked to other forms of integration, including the idea of a union with United States.

1. The Origins of Cold War

After the Second World War, a new war took space in Europe creating two opposite sides between Soviet Union, with the socialism against United States, with the capitalism. The Soviet Union had the goal of achieve territorial security against future attacks from Germany. United States wanted to consolidate peace and prosperity in a new European and American relationship.  Also, there were tripartite conferences, beginning in Yalta in 1945. Inside the conflict: Truman, in The policy of containment, argued that more than the security of two states was at stake and the world faced a choice between alternative ways of life. In response to the Truman doctrine the Soviet Union convened a conference of Eastern European communist parties, created an organization known as the Cominform.

France, and the Soviet Union shared the view that Germany posed the greatest threat. The Americans concluded that economic growth in Western Europe required Germany’s industry and resources.

1. The Marshall Plan and other tools (Council of Europe, Western European Union)

Marshall made a proposal to revitalize Europe, including Germany, economically and diffuse the nationalism there The premise was European countries should work together to plan economic  reconstruction with the promise of American financial support. Marshall`s offer covered the entire continent but it was limited to Western European countries. The final report adopeted was disappointing> the lack of customs union, absence of strong and central institutions, disagreement over Germany`s future role. Another  result was a body known the Council of Europe, which is based in Strasbourg. The British insisted on unanimity,  the reason why the body could not be turned into a federalist structure.

1. The primary goal was to reconcile French efforts to contain Germany economically and politically with American desires for integration. Then Schuman proposed integration of French and German coal and steel industries. The goal was a French-german rapprochement, the tools of cooperation and integration.

The economic security of Western Europe moved forward with the Schuman plan. The question of military security for Western Europe was still unresolved. Germany rearmament was not a mainstream idea, although Adenauer was a supporter.

5.

Trade imbalances caused by the economic depression of 1929 led most European states to adopt domestic deflation policies. The finance the war< to raise taxes, issue bonds, than print money.  Much of Europe experienced rapid inflation durint the war. ~Beggar-thy-neighbor~ was created as a policy when it benefits the home country at the cost of worsering ecnomoc conditions abroad. Many countries imposed prohibitions on private financial account transactions to limit these effects of foreign exchange market developments.

6. The Bretton-Woods system (1945-1973)

The Bretton Woods system was design to avoid the recurrence of excessive restrictions on trade and payments. It’s also related to exchange rate stability and sovereign monetary policy.

7. The open economy dilemma

The possibilities of one Open-Economy Dilemma could be two of the items:

• Exchange rate stability
• Monetary policy oriented toward domestic goals
• Freedom of international capital movements

8. The problems of the European Payments Union

When the EPU agreement took place, countries could remove quote restrictions. Although, there were some problems. First, the countries began by lifting QRs on essential imports such as raw materials, and capital goods needed for economic reconstruction. But when the liberalization set within product groups, the liberalization did bite. The second problem was limited amounts of credit available under the EPU and reversibility of national liberalization. And the last, the British government insisted early on that tariff matters be left to the GATT.

9. Attempts to greater liberalism, the establishment of the Common Market (The Treaty  of Rome)

Stikker-plan proposed by the Netherlands:  entailed removing quotas, tariffs, and state trade

Pella-plan proposed by Italy:  European free trade within the space of 10 years, establishing European Integration Fund  

French proposal (Petsche-plan) to counter these ideas suggested establishing a European Investment Bank to help to carry out capital-intensive investments

Britain was hostile to all of these proposals

The possibility of liberalizing intra-European trade in agriculture had first been addressed by the French

About the Common Market, the final agreement for the treaty establishing the European Economic Cooperation was signed in Rome on 1957. It came into force in 1958. Having resolved the questions of German rearmament (membership in the WEU) and jurisdictions over the region Saar, France and Germany launched a number of ambitious initiatives.

The customs union lies at heart of the common market

10.Competing models of European integration and De Gaulle’s 4-layered vision of international organization

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