1. Pulling Back and Together
Western Europe
Pulling Back and Together

2. Background
After 1945, the nations of Western Europe pulled back from their imperial commitments
The people of Western Europe worked toward economic and political unity
NATO provided collective security

3. Recovery and Reconstruction
Following WWI, industrial areas had been bombed to oblivion, infrastructure lay in ruins, and regular economic structures had collapsed
Complicating recovery were the amounts of displaced persons

4. Harsh winters and poor harvests increased fears of communism
The US offered Marshall Plan aid which was to be funneled through the Office of European Economic Cooperation to promote unity
Industrial nations began creating international economic institutions
the Bretton Woods system

5. Currencies were to be backed by old and exchange rate fixed to ensure stability
The dollar evolved into an unofficial reserve currency
The World Bank provided loans for the modernization of infrastructure

6. Western nations worked toward a system of free trade
GATT – worked toward the reduction and elimination of trade barriers and gave way to the World Trade Organization

7. Governments accepted the need for state management of a capitalist economy
Keynesian economic theory emerged as the reigning theory
Several states nationalized key industries to ensure the public welfare

8. European growth continued but were staled with the oil shock of the 1970s and 1980s
Stagflation forced a reappraisal of Keynesian theory and a move to reduce the welfare state and government regulation in favor of supply side economics

9. Decolonization
Most European nations no longer wanted to continue as colonial powers
Senior members of the Western alliance opposed colonial empires

10. Great Britain
After WWI, ruled several areas of the world under mandates
After WWII, Britain generally favored a strategy of “partition and run”
The Suez Crisis would signify the end of Britain’s status as a world power

11. Low Countries Japan liberated many of the Asian colonies
The Netherlands preferred to work on European issues
Belgium planned to grant independence to the Congo over a 30 year period, but pulled out due to increasing pressure

12. France Was determined to hold onto its colonial empire
Faced a nationalist and communist insurgency in Indochina (withdrew in 1954)
Had a more agonizing war with Algeria (8 year war which ended in 1962)

13. Western European Unity and Economic Integration
Western and Central Europeans moved incrementally in the postwar period toward economic and political integration
Key to this was France and Germany

14. Jean Monnet and Robert Schuman proposed the European Coal and Steel Community
Wanted to eliminate trade barriers and placed coal and steel production under a High Authority

15. The Treaty of Rome create the European Economic Community (Common Market)
Work toward the abolition of trade barriers, the free flow of capital and common economic policies
Also the creation of the European Atomic Community

16. Great Britain stood outside the Common Market but tried to join in the 1960’s, only to see protest by the French
It did join in 1973
In the 1980s and 1990s, more nations joined

17. In 1991, the Maastricht Treaty aimed at creating a single Europe
Created the European Union
Has expanded to 25 nations
In 2000, adopted the new euro currency

18. Great Britain

19. Issues
Older and less advanced economic infrastructure than the other European nations
Battled high unemployment

20. Leaders/Groups
The Labour Party and the Conservative Party alternated control
Margaret Thatcher attacked the size of the welfare system, decentralized industries, attacked the labor unions, and reasserted British power abroad

21. Events
The Troubles in Northern Ireland between the IRA and the Protestant led government
Falklands War with Argentina in 1982
1973- joined the Common Market
1998 – agreement between the IRA and Protestants in Northern Ireland

22. Analysis Decaying industrial cities and lower economic productivity
Growth had increased under the Blair government

23. France

24. Issues
Struggled with the legacy of collaboration of the Vichy regime as well as political instability
Under de Gaulle, France left NATO and pursued a more independent line in foreign affairs

25. Leaders/Groups
Charles de Gaulle – supported European integration but an independent foreign policy
Francois Mitterand – Socialist president from 1991 to 1995
Jean Monnet – architect of European unity

26. Events In 1961, pulled out of NATO Developed nuclear weapons
Had student revolts in Paris in 1968 which almost brought down de Gaulle’s government
Colonial conflicts in Indochina and Algeria caused internal conflicts and changes

27. Analysis Benefited from its involvement in the EU
Assertions at political power did not always coincide with its economic power

28. West Germany

29. Issues Became Germany after its reunification in 1990
Needed to distance itself from its Nazi part

30. People/Groups Konrad Adenaur was the founding chancellor
Ludwig Erhard was the economic minister behind the Wirtschaftswunder (economic miracle)
Willie Brandt used Ostpolitik which opened relations with East Germany and the USSR
Helmut Kohl – oversaw unification

31. Events In 1955, joined NATO Joined the UN in the 1970s
Reunification came soon after the collapse of the Berlin Wall

32. Analysis
Established as a democracy and committed member of the Atlantic Alliance
Reunification cost trillions of marks
Economic strength and potential makes it the strongest member of the EU

33. Italy

34. Issues Abolished the monarchy and worked toward economic modernization
Parliamentary system has produced more than 60 different governments since 1945

35. People/Groups
Alcide de Gaspari helped establish Italy’s new parliamentary system and membership in the Atlantic Alliance

36. Events Eurocommunism became a continental movement that began in Italy
Communist parties who rejected ties to the Soviet Union
In 1993, Italy restructured its system of proportional representation

37. Analysis Hard hit by the oil shocks
Continues to deal with lack of development in the south and corruption in the government