Britain and the European Community Britain forms EFTA with Austria, Denmark, Norway, Portugal, Sweden, and Switzerland (1959) Wants free trade but not common external tariff and agricultural policy EC members fear being sucked into EFTA. 1961 first application for membership. Agricultural policy Relations with Commonwealth EFTA commitments Deep suspicion about membership in Britain

Britain and the EC Kennedy strongly endorses British membership in EC as building block of stronger transatlantic relations. At odds with de Gaulle’s European Europe. Anglo-American missile accord (1962). At 1963 press conference, De Gaulle vetoes British accession. Britain re-applies in 1967 De Gaulle claims Britain has not yet achieved the necessary political and economic transformation

Turkey Member of Council of Europe, OEEC, and NATO 1959 Application for Association Agreement. 1960 military coup. 1963 Ankara Agreement. Recognizes Turkey as a European state 22 year period of tariff reductions leading to Customs Union Association Council Joint Parliamentary Committee

Community in Flux 1969-1979

France and Enlargement Pompidou as president. Like de Gaulle, rejects supranationalism, advocated confederal Europe. Economic decline in France, devaluation of franc. Germany rising economically Germany’s Ostpolitik British accession as restraint to Germany.

France, Britain, and Germany

Hague Summit (1969): Completion, Deepening, Enlargement Completion: Financing of CAP 1970 Budgetary Agreement Deepening: foreign policy cooperation EPC Germany seeking EC-wide support for Ostpolitik coordination of monetary policies 1970 Werner report to achieve EMU in 10 years Enlargement:

First Enlargement For France, Britain’s unionist position is a source of comfort. Br. PM: first enter, then sort out differences. French referendum on enlargement Denmark, Ireland, Norway also holding referenda. Britain insists not to.

International Finance and EMU 1971 Collapse of Bretton Woods System, suspension of dollar convertibility Germany: Joint float. Anti-inflationary measures. France: Exchange rate stability. Implications for CAP. European economies slip into recession. Introduction of non-tariff barriers. 1972 Snake in tunnel system. Does not work. Plans for EMU shelved.

Oil Crisis, Middle East, and EPC OPEC embargo. 63% of Europe’s energy needs met by Middle East Netherlands, Germany want concerted response. Britain and France want to benefit from special relations. Common position on the Middle East. Strains transatlantic relations. US wants coordinated Western response

Britain, France, and Germany

Britain’s Re-negotiation ERDF –German opposition Labor Party wants renegotiation of Britain’s accession agreement. Britain’s budgetary contribution. France opposes. Agreement on ERDF and correcting mechanism. Referendum in Britain on whether to stay in EC.

Institutional slump Direct elections to European Parliament Inefficient Commission Council meetings regularized. Reports on Future of European Community 1976 Tindemans Report Three wise men report