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Book No. – 52 (History)
Book Name – Modern World History (Norman Lowe)
What’s Inside the Chapter? (After Subscription)
1. SUMMARY OF EVENTS
2. THE STATES OF WESTERN EUROPE
2.1. France
2.2. The German Federal Republic (West Germany)
2.3. Italy
3. THE GROWTH OF UNITY IN WESTERN EUROPE
3.1. Reasons for wanting more unity
3.2. First steps in co-operation
4. THE EARLY DAYS OF THE EUROPEAN COMMUNITY
4.1. Stages in the evolution of the Community
4.2. The machinery of the European Community
4.3. Britain holds back
4.4. Britain decides to join
4.5. Why did the French oppose British entry into the EEC?
4.6. The Six becomes the Nine (1973)
5. THE EUROPEAN COMMUNITY FROM 1973 TO MAASTRICHT (1991)
5.1. The Lome Convention (1975)
5.2. Direct elections to the European parliament (1979)
5.3. The introduction of the Exchange Rate Mechanism (ERM) (1979)
5.4. Community membership grows
5.5. Britain and the EC budget
5.6. The 1986 changes
5.7. The Common Agricultural Policy (CAP)
5.8. Greater integration: the Maastricht Treaty (1991)
6. COMMUNIST UNITY IN EASTERN EUROPE
6.1. Organization of the Communist bloc
6.2. Tensions in the Eastern bloc
6.3. Crisis in Poland
6.4. The Hungarian Revolution (1956)
6.5. The crisis in Czechoslovakia (1968)
6.6. The communist bloc moves towards collapse
7. WHY AND HOW DID COMMUNISM COLLAPSE IN EASTERN EUROPE?
7.1. Economic failure
7.2. Mikhail Gorbachev
7.3. Poland leads the way
7.4. The peaceful revolution spreads to Hungary
7.5. Germany reunited
7.6. Czechoslovakia
7.7. The rest of eastern Europe
7.8. Eastern Europe after communism
8. CIVIL WAR IN YUGOSLAVIA
8.1. Things begin to go wrong
8.2. The move to war: the Serb-Croat War
8.3. The war in Bosnia-Herzegovina
8.4. Conflict in Kosovo
8.5. The downfall of Milosevic
9. EUROPE SINCE MAASTRICHT
9.1. Enlargement and reform
9.2. The Treaty of Nice
9.3. Problems and tensions
10. THE EUROPEAN UNION IN CRISIS
10.1. The future of the European Union
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LANGUAGE
The Two Europes, East and West since 1945
Chapter – 10
Table of Contents
SUMMARY OF EVENTS
- At the end of World War II in 1945, Europe was in turmoil, with many areas like Germany, Italy, Poland, and the western parts of the USSR devastated.
- Even victorious powers like Britain and the USSR were financially struggling due to the war’s costs.
- There was a massive task of reconstruction, and some believed a joint effort or a united Europe under a federal system would be the best solution.
- Europe split into two over the American Marshall Plan for European recovery (Western Europe accepted aid, but the USSR rejected it to maintain control over Eastern Europe).
- From 1947, Europe was divided by Joseph Stalin’s ‘iron curtain’.
- Western Europe recovered quickly thanks to American aid, increasing global demand for European products, technological advances, and careful government planning.
- Moves towards unity included the creation of NATO and the Council of Europe (1949) and the European Economic Community (EEC) in 1957.
- In Britain, there was slower enthusiasm for unity due to fears of losing sovereignty, leading to Britain’s delay in joining the EEC until 1972.
- Eastern Europe became satellite states of the USSR, with Molotov Plan (1947), COMECON (1949), and the Warsaw Pact (1955).
- Stalin tried to make Eastern European states resemble the USSR, but after his death in 1953, some states, like Yugoslavia, Poland, and Romania, gained more independence.
- Hungary (1956) and Czechoslovakia (1968) faced Soviet invasions for attempting to assert independence.
- The 1970s brought a period of prosperity in Eastern Europe, but the 1980s saw the effects of a global depression.
- Dissatisfaction with communism grew, and between 1988-1991, communism collapsed in the USSR and most Eastern European countries, with Albania holding on until 1992.
- Germany was reunified in October 1990, regaining its position as the most powerful state in Europe.
- After the end of communism, Yugoslavia disintegrated into a civil war (1991-1995).
- In the West, the European Community became the European Union (EU) in 1992 and continued to function successfully.
- Many former communist states applied to join the EU; by 2004, the EU had 25 members, and by 2007, it reached 27with the addition of Bulgaria and Romania.
- Enlargement of the EU brought its own set of challenges.
THE STATES OF WESTERN EUROPE
France
- Under the Fourth Republic (1946-58), France was politically weak, with modernized industry but stagnating agriculture.
- Governments were weak due to a constitution that gave the president little power, resulting in frequent coalition governments; in 12 years, there were 25 different governments.
- Disasters included:
- French defeat in Indo-China (1954),
- Failure in Suez (1956),
- Rebellion in Algeria, leading to the government’s collapse in 1958.
- General de Gaulle came out of retirement to lead the country, introduced a new constitution giving more power to the president (basis for the Fifth Republic), and granted Algeria independence.
- De Gaulle built France’s own nuclear deterrent, withdrew French forces from NATO, criticized the USA’s war in Vietnam, condemned Israeli behavior in the Middle East, and vetoed Britain’s entry into the Common Market.
- De Gaulle retired in 1969 after strikes and protests against the authoritarian regime.
- The Fifth Republic continued with stable government under Georges Pompidou (1969-74) and Valery Giscard d’Estaing (1974-81).
- François Mitterrand, a socialist, was president from 1981-1995, succeeded by Jacques Chirac (right-wing RPR) for seven years.
- In the 1990s, dominant issues in France included the continuing recession, unemployment, doubts about France’s role in the European Community, and unease about a reunified Germany.
- Chirac’s prime minister, Alain Juppé, initiated economic cutbacks to prepare for the introduction of the euro in 2002, but faced widespread protests (December 1995).
- In the 1997 parliamentary elections, Chirac’s conservative coalition lost majority, and Lionel Jospin (socialist) became prime minister, aiming to reduce the budget deficit.
- Jospin’s policies failed to gain enthusiasm, and in the 2002 presidential elections, he was beaten into third place, leaving Chirac and Jean-Marie Le Pen (right-wing nationalist) in the run-off.
- Chirac won with 80% of the votes but faced difficulties during his second term (2002-2007):
- The 2005 referendum overwhelmingly rejected the new European Constitution despite a government campaign.
- In 2005, riots in poorer areas and strikes against government policy on temporary youth employment led to chaos.
- After two months, Chirac was forced to abandon the policy.
- 2007 presidential elections: Ségolène Royal (Socialist) was unexpectedly defeated by Nicolas Sarkozy (Centre-Right) due to a lackluster campaign.
- Sarkozy promised greater security, tough policies on crime and immigration, and a break from the Chirac era to reverse national decline.
- From autumn 2008, Sarkozy’s presidency was dominated by the global financial collapse and the ongoing EU economic crisis.
- In the 2012 presidential election, François Hollande (Socialist) won.
The German Federal Republic (West Germany)
- German Federal Republic set up in 1949, experienced a remarkable economic miracle under Chancellor Konrad Adenauer (1949-63).
- Marshall Plan brought American investment into the country, enabling the rebuilding of German industry with modern plant and equipment.
- Government promoted reinvestment of profits into industry, rather than higher dividends or wages (contrasting with Britain).
- Taxation reduced, allowing people more money to spend on manufactured goods.
- Rationing and controls were reduced or removed.
- Korean War (1950-1) boosted demand for high-quality goods, benefiting German industry.
- By 1960, West Germany produced 50% more steel than united Germany in 1938, and unemployment was less than a quarter million.
- Recovery credited to the German people’s determination and ingenuity, making them Europe’s most successful economy.
- All classes shared prosperity; pensions and children’s allowances adjusted to cost of living, and 10 million new dwellings provided.
- New constitution led to a two-party system, with Christian Democrats (CDU) and Social Democrats (SDP) as major parties, and Free Democratic Party (FDP) as a smaller party.
- Green Party founded in 1979 with an ecological focus.
- Successors to Adenauer: Ludwig Erhard (1963-6) and Kurt Georg Kiesinger (1966-9) continued progress but faced some setbacks, including rising unemployment.
- Support shifted to SDP, leading to SDP-FDP coalition (1974-82) under Willi Brandt and Helmut Schmidt.
- By 1982, the world recession caused unemployment to rise to 2 million.
- Schmidt proposed economic stimulus, but FDP withdrew support, forcing him to resign.
- Helmut Kohl became Chancellor after the CDU-CSU coalition formed in 1982, with FDP support.
- In 1985, economic growth at 2.5%, export boom.
- By 1988, unemployment rose to 2.3 million, but Kohl remained in power and became the first Chancellor of reunified Germany in 1990.
- Reunification brought significant challenges, with the cost of modernizing the east straining the economy.
- Privatization of state industries began, but Kohl’s promises of no tax hikes and everyone being “better off” after unification were not fulfilled.
- Tax increases and spending cuts led to economic stagnation and rising unemployment.
- In 1998, Gerhard Schroder (SDP) became Chancellor after Kohl‘s 16-year tenure.
- Unemployment reached 4.4 million (10.6%) in 2003; budget deficit exceeded the 3% ceiling for Euro participation.
- Schroder narrowly re-elected in 2002 but failed to improve the economy.
- 2005 elections: CDU/CSU narrowly won but formed a coalition with FDP and SPD.
- Angela Merkel became first woman Chancellor (2005), with a moderate approach.
- Economic upswing in 2006-7, unemployment fell, and higher tax revenues helped absorb some budget deficit.
- The 2008 crash plunged Germany into recession again.
- In 2009, the SPD suffered its worst performance and dropped out of the coalition, enabling Merkel to continue.
- Merkel’s popularity attributed to her fairness, common-sense approach, and unpretentious manner.
- Merkel was seen as the leader most likely to restore stability.
Italy
- The Republic of Italy began with prosperity and stable government under de Gasperi (1946-53), but old problems resurfaced.
- At least seven major parties ranged from communists on the left to neo-fascists on the far right, making a majority in parliament difficult.
- Two main parties: Communists (PCI) and Christian Democrats (DC).
- Christian Democrats dominated government but depended on alliances with smaller parties of the centre and left.
- Series of weak coalition governments failed to solve problems of inflation and unemployment.
- Successful politician: Bettino Craxi (Prime Minister 1983-87) reduced inflation and unemployment.
- Basic problems persisted as Italy entered the 1990s.
- North-south divide: The north was prosperous with modern industry, while the south (Calabria, Sicily, Sardinia) was backward with higher unemployment and lower standards of living.
- The Mafia remained powerful, involved in drug dealing, and strengthened in the north.
- Mafia judges assassinated in 1992, crime appeared out of control.
- Politics riddled with corruption, with leading politicians under suspicion.
- Bettino Craxi and Giulio Andreotti (seven-time prime minister) involved in corruption; Andreotti arrested and charged with working for the Mafia in 1995.
- Government debt and weak currency.
- In September 1992, Italy and Britain withdrew from the Exchange Rate Mechanism and devalued the lira.
- Political change in the early 1990s after the collapse of communism in Eastern Europe.
- PCI changed name to Democratic Party of the Left (PDS); DC broke up, succeeded by the Popular Party (PPI).
- The centre-ground shrank, and increasing polarization between left and right.
- Key issues: electoral reform, illegal immigrants smuggled by Mafia, and preparing the economy to join the euro in 2002.
- May 2001: Silvio Berlusconi elected prime minister of a right-wing coalition after over six years of centre-left governments.
- Berlusconi promised lower taxes, new jobs, higher pensions, and better amenities.
- Berlusconi faced accusations of bribery and financial misdemeanours.
- Berlusconi granted himself immunity from prosecution while in office.
- After a short interval with Romano Prodi as prime minister (2006-8), Berlusconi returned to power.
- By 2008, Italy’s economy showed strain, with almost no growth and a national debt of 1.5 trillion.
- As the eurozone crisis deepened, Berlusconi lost parliamentary majority and resigned in 2011.