Chapter 30 Contemporary Europe

End of Dictatorship in Greece Army officers overthrow parliamentary system and the monarchy in 1967 Democracy restored in 1973 Became member of European Community in 1981

End of Dictatorship in Portugal Salazar regime Opposition grew in colonies; Guinea, Angola and Mozambique Portugal used violent force to maintain its empire Condemned by UN, African nations and European nations Army seized power in 1974 Promised civil rights for Portugal, self determination for colonies Portugal joined European Community in 1986

End of Dictatorship in Spain Franco called Juan Carlos, grandson of Spain’s last King, to take empty throne 1969 Franco retired in 1973 Juan Carlos increased freedom of speech, encouraged democracy New Constitution in 1978 Attempted military coup failed Became member of European Community in 1986

Western Europe Energy Crises Oil producing (OPEC) nations banded together to raise oil prices in 1973 Europe relied on imported oil from Middle East Western Nations began to look for domestic sources of energy Oil discoveries in North Sea mad Norway self sufficient, and Britain nearly so Nuclear Power plants sprang up all over Europe, especially France Greens protested Nuclear power, especially after Chernobyl

Western Europe Stagflation High cost of energy increased inflationary pressure Inflation rates of 20-30% in Britain, Italy and Portugal in Undermined planning, savings and trade Stagflation-high inflation and stagnant economies Increased unemployment Competition from Japan Expensive social programs and little support for higher taxes left governments little room to maneuver

Great Britain Post WWII Labour Party Cradle to grave social welfare programs -Benefits for sick, unemployed, retired -National Health Service (NHS) Nationalized Bank of England, the railroads, electric, iron and steel industries -Many of these industries were under gov’t control during war

Great Britain Post WWII Debt to U.S. Gold and currency reserves depleted fighting the war Large military spending due to Cold War, overseas commitments “Age of Austerity” Wartime rationing of butter and sugar lasted until 1954

Great Britain Exhausted by slow pace of change Conservative won elections in 1951 Continued nationalization, social programs of Labour Party “Politics of Consensus”

Great Britain Economic Decline Great Britain did not achieve the “economic miracle” of postwar Germany and Italy Reliance on older factories Lack of central economic planning Aggressive unions fought for higher wages without increasing production

Great Britain Margaret Thatcher (Conservative) became first female Prime Minster in 1979 Break with “failed policies of the past” Thatcherism: tight control of the money supply to reduce inflation Sharp cuts in public spending Cut in taxes Reduce power of trade unions Selling off of many nationalized industries

Great Britain Falkland War 1982 War with Argentina over Falkland Islands Revived Thatcher's popularity Retired in 1990

Great Britain Labour Party returned to power in 1994 Tony Blair elected “New Labour” Moved party away from its socialist roots Did not renationalize economy Focused on improved Social Services, reforming the House of Lords Regional power to Wales and Scotland resigned in 2007 after his support was reduced over backing the U.S. in the Iraq War

France Charles De Gaulle dominated life in postwar France Fourth Republic Granted right to vote to women Series of colonial wars in Indochina and Algeria

France Conflict in Algeria led to fear of a military coup Plebiscite held for new Constitution in 1958 Fifth Republic More powerful presidency, held by De Gualle Wanted to restore France’s presences on the world stage -Vetoed Britain's entry into Common Market in Withdrew from NATO in Refused to sign Nuclear Test Ban Treaty -Developed hydrogen bomb in 1968

France Economic Struggles million men returned home from Germany that needed jobs Transportation system in shambles Limited supplies of coal and food

France Monnet Plan 1947 CGP established, nonpolitical technocrats to run economy Increased foreign investment and central planning helped French economy grow rapidly

France As France became more prosperous, there was a sense they were losing their unique way of life Resistance to “Americanization” -Coca Cola banned in 1950

France 1968 Revolutions Students united with workers Demanded education reforms and wage increases De Gaulle survived crises, resigned in 1969

France Members of De Gaulle’s party held power until 1981 Socialist Francois Mitterrand elected Social reforms and reducing unemployment Did not radically socialize France Retired in 1995

France Replaced by Gaullist Jacques Chirac Platform of healing social ills (racism and labor strikes), tax cuts and job programs Social unrest and corruption Racial rioting Conservative Nicolas Sarkozy elected in 2007 Plan to control immigration and modernize economy

Italy Postwar Italian monarchy was associated with the fascist In 1946 a republic was established “Economic Miracle” Role of the state Institute for Industrial Reconstruction (IRI) created under Mussolini Controlled shipbuilding, airlines, metallurgy and chemical industry

Italy Benefited from membership in common market Cheap labor from Southern Italy “Southern Question” Reduce economic gap between north and south Land reform Investment, five year plans Significant economic gap remains

Italy Problems Political terrorism -“red brigade” Organized Crime -Mafia Corruption

Germany Divided postwar Berlin Airlift 1949 West Germany became a democracy, East Germany ruled by Communist dictatorship 1949 West Germany joined NATO, East Germany the Warsaw Pact Berlin Wall built in1961

West Germany Politics Christian Democratic Union (CDU) Led by Chancellor Konrad Adenuer Gerhard Ritter, Minister of Economics, became Chancellor after Adenuer’s retirement

West Germany “Economic Miracle” Influx of millions of Germans who had fled from Poland Czechoslovakia and East Germany Marshall Plan investment GNP grew from $23 billion in 1950 to $103 billion in 1964 Increased wages and higher productivity for workers

West Germany Willy Brandt charismatic leader of the Social Democrats, became Chancellor in 1969 First socialist leader since 1930 Ostpolitik Signed treaties with USSR, Poland and Czechoslovakia Visited Poland, monument to those who died at Warsaw Ghetto Recognized East Germany Won Nobel Peace Prize in 1972 Resigned after a one of his aides was found to be an East German spy

Germany Helmut Kohl (CDU) became prime minister in 1982 Reunification Germany reunited in 1990 after fall of Berlin wall West Germany unprepared Economic strains integrating East Germany into market economy Weak east German currency exchanged one to one basis with strong currency of West Germany West Germany invested heavily to modernize the economy and infrastructure of East Germany After reunification, Germany faced high unemployment

Germany 1998, Social Democrat Gerhard Schroder elected Prime Minister Faced high unemployment Dismantled many social programs Gained popularity for opposing U.S. war in Iraq

Germany In 2005, conservative Angela Merkel (CDU) became first female chancellor of Germany Germany economy grew rapidly High approval ratings