1. End of the Cold War

2. Soviet Satellite Unrest Yugoslavia (1950s) –Remained free, ruler Marshall Tito (Josip Broz) defied Stalin Not bordering USSR & never occupied by Soviet troops NATO countries sent loans, food, trade, etc… Poland (1956) –Revolt Better conditions End Soviet domination –Khrushchev alarmed, promised not to interfere with Poland’s internal politics Hungary (1956) –Revolt Better condition Withdrawal of Soviet troops Full independence –Soviets won, puppet government put in place

3. More Unrest Invasion of Czechoslovakia (1968) –Program of “liberalization;” trade with West Less censorship Other political groups (besides Communist) –Soviets feared movement spreading to other satellites –Invaded and occupied Czech. –Looked down upon by other satellites and China  More Poland –1970s - 1984 Soviets raised prices = unrest and rioting 1978 John Paul II becomes Pope (he was Polish), intensified religious fervor in Poland Wage increases, shorter work week, labor unions

4. Collapse of Communism (1989-90) Poland –Trade Union Solidarity Demanded (and won) better conditions for workers, shorter hours, etc… Became a political party; Demanded free elections 1989, first free elections, Solidarity won majority over Communism Other satellites followed Poland’s example –Steps to fall of Communism Old leaders step aside for younger Communist leaders New leaders allow rival parties In free, multi-party elections, Communism lost –By 1990, Hungary, Bulgaria, E. Berlin, and Czechoslovakia all free (Albania in 1991) Berlin Wall Fell 1989

5. Impact of Change Difficulties changing economic systems from Communism to free market Ethnic Splintering –Yugoslavia 1991 – 1992 Four of Yugoslavia’s six republics declared independence (Slovenia, Croatia, Bosnia- Herzegovina, Macedonia) Civil war broke out between Croatia and Bosnia 1995 Peace treaty –Divided Bosnia into a Muslim-Croat federation and a Serb Republic with weak government in Sarajevo –1998 war broke out in Kosovo, Serbian region with 90% ethnic Albanians –Yugoslav President Slobodan Milosevic refused to give up Kosovo –NATO sent in peacekeeping force in 1999 –1 million Kosovars displaced –1993, Czechoslovakia peacefully divided into the Czech Republic and Slovakia

6. European Union 1957 Belgium, Netherlands, France, Italy, Luxembourg, and W. Germany agreed to a trade union called the EEC (European Economic Community) –Goals Eliminate tariff barriers Establish unified tariff system on imports from outside EEC 1993 this becomes the European Union –27 Countries involved

7. What Kind of Union? Council of foreign ministers (one from each country) make decisions, headed by a president Free movement of goods, services, and money among member nations Disagree over how much power it should have (Germany want it to have political power, GB only economic) Euro –Set up a European Central Bank to align Inflation rates Interest rates Currency exchange rates Budget deficits Public debt –Euro began circulating on January 1, 2002