3 - From the Empty Chairs Crisis to the Single Act Flashcards
Result of the rise of Europe as a strong economic power in 1970s on the US
less US interest in fostering integration; the EEC becomes a single economic unit, giving it more leverage in negotiations with the US
Economic challenges faced by US
trade deficit and the decline of the US dollar after losing the gold standard
Interdependence
the emergence of interdependence in international relations
Change in American policy
shifted from confrontation to peace and negotiation
end of bipolar era
no longer nuclear monopoly by US and USSR, France starts testing weapons
Ostpolitik
German policy to reunite Germany
European integration crossroads
from 60s to mid 80s integration slowed, majority of Treaty of Rome’s goals remained unfulfilled
Gaps in European Integration
lack of harmonized EEC legal system and fragmented research and development
Rise of US and Japan
Europe lagged behind in technological development
Role of Corporations in European integration
pressured for fulfillment of Treaty of Rome’s vision of a single European market free from American competition
demanded a real borderless, single European market
Engaged in cross-border mergers to build a European network
Empty Chair Crisis
1965, France had presidency of council of ministers but would not preside, the work of the council was blocked
opposed supranational or federal integration and instead favored a European political alliance
Luxembourg Compromise of 1966
accepted the principle of majority voting but retained the option to switch back to unanimity if national interests were threatened
Causes of stagnation
1) world economy struggles, such as with the oil crisis
2) intergovernmentalism dominated and the role of the European Commission weakened
3) establishment of the European Council shifted decision-making power toward intergovernmentalism
Changing international environment
1) improved relations between the US and USSR
2) Eastern European countries sought independence
3) Eurocommunism emerged in the west
4) Britain entered into the European Community in 1973, stabilizing connections with America
Post-war prosperity
Europe experienced a period of exceptional economic growth in the post-war quarter of a century
Italy, France, and Germany all experienced economic miracles
Shift in Economic Environment (1960s-1970s)
economic miracle began to decline, high unemployment rates, loss of control over inflation
Oil crises
Europe was dependent on oil imports, instability lead to significant increase in consumer prices, less developed regions faced debt crises
Collapse of colonialism
the rise of liberation movements and independence struggles in former colonies became an economic burden for colonizers
The new technological revolution and neoliberalism
worldview that economics can solve problems better than politics, the idea that all the countries in the world will reach the status of liberal democracies and would adapt to capitalist economies
Foreign Direct Investments (FDI) and financial flows
FDIs grew at an unprecedented rate, the rise of multinational companies that play a dominant role in the world economy
the impact of Neo-conservatism
argued that inequality was beneficial and a natural outcome of individual freedom
liberal democracy shifted towards extreme market-focused policies
