How did European integration and economic performance interact in the 60's and 70's?
The decades of the 1960’s and 70’s were undoubtedly geared towards a period of economic integration within European nations. Integration was inevitably triggered by the geopolitical and economic considerations that emerged after the Second World War for the European states. A restrained Germany alongside US and French interest in economic progression through increased trade links are the key factors behind why European integration occurred. The Treaty of Rome would predominantly bring on European integration in 1957, which established the European Economic Community (EEC). This would progressively come into force through the elimination of tariffs by 19681. The EEC would progress economically in these decades through the formation of the ECC customs union, increased trade between EEC and EFTA (European Financial Trade Association) members. Though the competition brought about by the EEC increased economic performance in the 60’s, the Luxembourg Compromise and the resignation of de Gaulle alongside British accession into the EEC led to economic stagnation and a period of ‘Eurosclerosis’2 in the 1970’s.
The formation of the EEC introduced a revolutionary component for European economic integration. Whilst the Organization for the European Economic Community (OEEC) enabled nations to liberalize on a non-discriminatory basis, the EEC removed all trade barriers on a discriminatory basis. The introduction of the EEC customs union coincided with a period of unprecedented economic prosperity3 and this largely offset the political and economic costs of liberalization-induced restructuring. This is highlighted by European unemployment averaging only 2.5 per cent and incomes either doubled, (France, Belgium and the Netherlands), or tripled (Germany and Italy)4 Furthermore the Common External Tariff (CET) applied by all EEC members was paid into the European Commission, highlighting a key feature of European integration and economic performance intertwining in this
The formation of the EEC introduced a revolutionary component for European economic integration. Whilst the Organization for the European Economic Community (OEEC) enabled nations to liberalize on a non-discriminatory basis, the EEC removed all trade barriers on a discriminatory basis. The introduction of the EEC customs union coincided with a period of unprecedented economic prosperity3 and this largely offset the political and economic costs of liberalization-induced restructuring. This is highlighted by European unemployment averaging only 2.5 per cent and incomes either doubled, (France, Belgium and the Netherlands), or tripled (Germany and Italy)4 Furthermore the Common External Tariff (CET) applied by all EEC members was paid into the European Commission, highlighting a key feature of European integration and economic performance intertwining in this