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Winston Churchill had been an early and influential advocate of a European assembly of some kind.
Even before the war ended the exiled governments of Belgium, Luxembourg and the Netherlands signed the ‘Benelux Agreement’, eliminating tariff barriers and looking forward to the eventual free movement of labour, capital and services between their countries. The Benelux Customs Union came into effect on January 1st 1948, and there followed desultory conversations between the Benelux countries, France and Italy
in 1947 only 29 percent of the Dutch population had a
‘friendly’ view of Germans and for the Netherlands it was important that an economically revived Germany be politically and militarily weak. This view was heartily endorsed in Belgium. Neither country could envisage an accommodation with Germany unless it was balanced by the reassuring involvement of Great Britain.
Jean Monnet proposed to France’s Foreign Minister what became known to history as the ‘Schuman Plan’. This constituted a genuine diplomatic revolution, albeit one that had been five years in the making. In essence it was very simple. In Schuman’s words, ‘The French government proposes that the entire French-German coal and steel production be placed under a joint High Authority within the framework of an organization which would also be open to the participation of the other countries of Europe.’ More than a coal and steel cartel, but far, far less than a blueprint for European integration,
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The German government immediately welcomed Schuman’s proposal, as well they might: in Konrad Adenauer’s delighted reply to Schuman he declared that ‘this plan of the French government has given the relations between our two countries, which threatened to be paralysed by mistrust and reserve, a fresh impetus towards constructive cooperation.’ Or, as he put it more bluntly to his aides: ‘Das ist unser Durchbruch’—this is our breakthrough.
The Germans were the first to ratify the Schuman Plan. Italy and the Benelux countries followed suit, though the Dutch were at first reluctant to commit themselves without the British. But the British declined Schuman’s invitation and without Britain there was no question of the Scandinavians signing on. So it was just six West European states that signed the April 1951 Paris Treaty founding the European Coal and Steel Community (ECSC).
All six foreign ministers who signed the Treaty in 1951 were members of their respective Christian Democratic parties. The three dominant statesmen in the main member
states—Alcide De Gasperi, Konrad Adenauer and Robert Schuman—were all from the margins of their countries: De Gasperi from the Trentino, in north-east Italy; Adenauer from the Rhineland; Schuman from Lorraine. When De Gasperi was born—and well into his adult life—the Trentino was part of the Austro-Hungarian Empire and he studied in Vienna. Schuman grew up in a Lorraine that had been incorporated into the German Empire. As a young man, like Adenauer, he joined Catholic associations—indeed the same ones that the Rhinelander had belonged to ten years earlier. When they met, the three men
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For all three, as for their Christian Democrat colleagues from bi-lingual Luxembourg, bi-lingual and bi-cultural Belgium, and the Netherlands, a project for European cooperation made cultural as well as economic sense: they could reasonably see it as a cont...
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the cosmopolitan Europe of their youth. Hailing from the fringes of their own countries, where identities had long been multiple and boundaries fungible, Schuman and his colleagues were not especially troubled at the prospect of some merging of national sovereignty. All six member countries of the new ECSC had only recently seen their sovereignty ignored and trampled on, in war and occupation: they had little enough sovereignty left to lose. And their common Christian Democratic concern for social cohesion and collective responsibility d...
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further north, the prospect was rather different. In the Protestant lands of Scandinavia and Britain (or to the Protestant perspective of a North German like Schumacher), the European Coal and Steel Comm...
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Meanwhile, the problems that the European Coal and Steel Community was designed to address began to resolve themselves. In the last quarter of 1949 the Federal Republic of Germany regained the industrial output levels of 1936; by the end of 1950 it had surpassed them by one-third. In 1949 West Germany’s trade balance with Europe was based on the export of raw materials (essentially coal). A year later, in 1950, that trade balance was negative, as Germany was consuming its own raw materials to fuel local industry. By 1951 the balance was once again positive and would stay so for many years to
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The British had nothing against a European customs union—they were quite in favour of one, at least for other Europeans. What made them uncomfortable was the idea of a supernational executive implied in the institution of a High Authority, even if it only directed the production and pricing of two commodities.
This British reluctance to relinquish any national control was obviously incompatible with Monnet’s purpose in the ECSC. But the British saw the ECSC as the thin edge of a continental wedge in British affairs, whose implications were the more dangerous for being unclear.
Some of the British reasoning was economic. The British economy—particularly that part of it which relied on trade—appeared in far healthier
condition than that of its continental neighbours. In 1947 British exports represented, by value, the sum of the exports of France, Italy, western Germany, the Benelux countries, Norway and Denmark combined.
Whereas western European states at that time traded chiefly with one another, Britain had extensive commerce with the whole world—indeed, Britain’s trade with Europe i...
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In the eyes of British officials, therefore, the country had more to lose than to gain by committing itself to participation in binding economic arrangements with co...
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And then there was the Commonwealth. In 1950 the British Commonwealth covered large tracts of Africa, South Asia, Australasia and the Americas, much of it still in British hands. Colonial territories from Malaya to the Gold Coast (Ghana) were net dollar earners and kept significant sums in London—the notorious ‘sterling balances’. The Commonwealth was a major source of raw materials and food, and the Commonwealth (or Empire as most people still referred to it) was integral to British national identity, or so it seemed at the time. To most policymakers it was
obviously imprudent—as well as practically impossible—to make Britain part of any continental European system that would cut the country off from this other dimension of its very existence.
there was more to London’s stance in 1950 than imperial self-delusion or bloody-mindedness. Britain, as Jean Monnet would later acknowledge in his memoirs, had not been invaded or occupied: ‘she felt no need to exorcise history.’ The British experienced World War Two as a moment of national reconciliation and rallying together, rather than as a corrosive rent in the fabric of the state and nation, which was how it was remembered across the Channel. In France the war had revealed everything that was wrong with the nation’s political culture; in Britain, it had seemed to confirm everything that
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and habits. World War Two, for most Britons, had been fought between Germany and Great Britain and the British had emerged triumphant and vindicated.12 This sense of quiet pride at the country’s capacity to suffer, endure and win through had marked Britain off from the continent. It also shaped the political culture of the post-war years. In the elections of 1945 Labour won a clear parliamentary majority for the first time in its history and, as we have seen, pressed through a broad range of nationalizations and social reforms culminating in the constitution of the world’s first universal
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Winston Churchill had gone for broke: borrowing from the Americans and selling British overseas assets to keep money and matériel flowing. As one wartime Chancellor of the Exchequer put it, these years saw ‘England’s transition from a position of the world’s largest creditor nation to the world’s largest debtor nation.’ The cost of World War Two to B...
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the country struggled to pay off huge dollar-denominated debts from a drastically reduced income. That is one reason why the Marshall Plan in Britain had almost no impact upon investment or modernization in industry: 97 percent of the counterpart funds (more than anywhere else) were used to pay off the country’s massive debt. These problems would have been bad enough for any medium-sized European country in Britain’s straitened post-war ...
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The only way for the country to pay its way in these overstretched circumstances was for the British to impose on themselves unprecedented conditions of restraint and voluntary penury—which accounts for the much remarked upon feature of these years: that proud, victorious Great Britain seemed somehow tighter, poorer, grayer and grimmer than any of the erstwhile defeated, occupied and ravished lands across the water. Everything was rationed, restricted, controlled.
Bread rationing, never imposed during the war, was introduced in 1946 and not abandoned until July 1948. The government ostentatiously celebrated a ‘bonfire of controls’ on November 5th 1949; but many of those same controls had to be re-imposed with the belt-tightening of the Korean War, and basic food rationing in Britain only ended in 1954—long after the rest of western Europe.
Britain remained a deferential, class-divided society—and the welfare state, as we have seen, benefited the ‘middling sort’ above all. But income and wealth really were redistributed as a result
of post-war legislation—the share of the national wealth held by the richest 1 percent of the population fell from 56 percent in 1938 to 43 percent in 1954; and the effective disappearance of unemployment pointed an optimistic contrast with the grim pre-war decade. Between 1946 and 1948 150,000 Britons migrated to Canada, Australia and New Zealand and many more contemplated following in their footsteps; but beginning in 1951 it seemed as though the worst of the austerity years were over
In 1828, the German poet Heinrich Heine made the already familiar observation that ‘it is rarely possible for the English, in their parliamentary debates, to give utterance to a principle. They discuss only the utility or disutility of a thing, and produce facts, for and against.’ The British rejected Robert Schuman’s invitation in 1950 because of what they took to be the disutility of joining a European economic project, and because of their longstanding discomfort with continental entanglements. But the British decision to stand aside from the ECSC was above all an instinctive,
psychological and even emotional one, a product of the utter peculiarity of recent British experience. In Anthony Eden’s summary of the British decision, to a New York audience in January 1952, ‘This is something which we know, in our bones, we cannot do.’ The decision was not final; but, taken when it was, it proved fateful. In the absence of Britain (and, in Britain’s wake, the Scandinavians) power within the ‘little Europe’ of the West fell by default to France. The French duly did what the British might have done in other circumstances and made ‘Europe’ in their own image, eventually
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asking.’ Monnet, too, would later look back and wonder how different things might have been had Britain chosen to take the initiative at a moment when her authority was still unrivalled. Ten years later, it is true, the British would think again. But in post-wa...
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The Red Army marched on foot and hauled its weapons and supplies on carts powered by draught animals; its soldiers were granted no leave and, if they hesitated, no quarter: 157,593 of them had been executed for ‘cowardice’ in 1941 and 1942 alone. But after a halting start, the USSR had out-produced and out-fought the Nazi colossus, ripping the heart from the magnificent German military machine. For its friends and foes alike, the Soviet victory in World War Two bore witness to the Bolsheviks’ achievement. Stalin’s policies were vindicated, his pre-war crimes largely forgotten.
of all the participant countries, victors and vanquished alike—the USSR was the only one to suffer permanent economic damage. The measurable losses in people and resources were immense, and would be felt for decades to come. Zdenĕk Mlynář, a Czech Communist studying in Moscow in 1950, recalled the capital as mired in ‘poverty and backwardness . . . a huge village of wooden cottages.’ Away from the cities the situation was far worse.
the war years had also seen what would prove an enduring semi-militarization of Soviet life. Centralised direction and a relentless focus upon the production of tanks, guns and planes had turned the wartime USSR into a surprisingly effective war machine, careless of human life and welfare but otherwise well-adapted to fighting a total war. The cohort of Party bureaucrats formed in the war—the Brezhnev generation—equated power and success with large-scale output in the defense industries, and they were to run the country for the next forty years with that model always in mind. Longstanding
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that same emphasis upon the Soviet Union’s roots in Russia’s imperial past served Stalin’s purposes in his post-war foray into central Europe. What Stalin wanted in Europe above all, as we have seen, was security. But he was also interested in the economic benefits to be had from his victories in the West. The little states of central Europe, from Poland to Bulgaria, had lived under the shadow of German dominion long before World War Two: in the 1930s especially, Nazi Germany was their main trading partner and source of foreign capital. During the war this relationship had been simplified into
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with Germany extracting for its war effort the maximum possible output from land and people. What happened after 1945 was that the Soviet Union took over, quite literally, where the Germans had left off, attaching eastern Europe to its own economy as a resource to be exploited at will. The Soviet Union extracted reparations from Hungary and Romania, as former allies of Hitler. These reparations, like those taken in kind from the Soviet Zone in Germany, did relatively little to compensate for Russia’s losses but they represented substantial sacrifices for the donor countries: by 1948, Romanian
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a pattern of mixed economic benefit in economic relations between metropole and colony is familiar to historians of colonialism and in this respect the relationship between the USSR and the lands to its west was conventionally ‘imperial’ (except that in the Soviet case the imperial center was actually poorer and more backward than its subjugated periphery).
Where Stalin differed from other empire-builders, even the czars, was in his insistence upon reproducing in the territories under his control forms of government and society identical to those of the Soviet Union.
Stalin set out to re-mould eastern Europe in the Soviet image; to reproduce Soviet history, institutions and practices in each of the little states now controlled by Communist parties.
Stalin’s motives for reproducing Soviet society in the satellite states were once again very simple. The widespread desire in post-war Eastern Europe
for peace, land, food and a new beginning might have eased the Communists’ path to power, but it was no guarantee of local support for Soviet policies. The preference for Communists over Fascists, or for some form of democratic Socialism, could not be counted upon to survive practical experience of Communist rule. Even the appeal of Soviet guarantees against German revanchism might wane in time. Stalin needed to secure his satellite neighbours’ unswerving allegiance, and he knew only one way to do this. First, the Party had to secure a monopoly of power. In the words of the Hungarian
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during the war certain industrial sectors—in Hungary and Slovakia especially—had actually
benefited from German investment in war production. Notwithstanding this variety, the Communist seizures of power were followed in short order by the imposition of economic uniformity across the region. First, in keeping with the Leninist redefinition of ‘socialism’ as a matter of ownership rather than social relations, the state expropriated large-scale firms in service, commerce and industry, where these were not already in public hands. Next, the state took over, taxed or squeezed out of business all firms employing more than fifty people. In Czechoslovakia, by December 1948, there were
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One of the means at hand for eliminating the property-owning middle class...
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currency reform. This was an effective device for destroying the cash savings of peasants and businessmen alike, an updating of older exactions like the forced capital levy. In Romania it was undertaken twice, in August 1947 (when it had the legitimate objective of ending hyperinflation) and in January 1952, when peasants who had built up savings over the previous four years (there was little for them to spend their money on) saw them wiped out. As in the Soviet Union, so in Soviet-run eastern Europe, the peasantry were doomed. The initial post-war reforms in the countryside had distributed
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‘The unmasking of the true face of the village rich is the foremost task of criminal proceedings . . . Non-deliveries and non-fulfillment of the [agricultural] production plan must be severely punished as sabotage.’ As this faithful echo of Soviet rhetoric from the 1930s suggests, antipathy towards the peasant, and successful implementation of rural collectivization, were one of the chief tests of Stalinist orthodoxy. In the short run, implementation of Soviet-inspired plans for industry was not so obviously a disaster: there are some things that command economies can manage quite well.
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On an appropriately smaller scale the semi-militarized, monolithic, first-generation industrialization of the inter-war Soviet Union was being re-run throughout the Soviet bloc. Much as they
had set out to do in Russia, the Communists in eastern Europe were reproducing a foreshortened and accelerated version of western Europe’s nineteenth-century industrial revolution.
The distinctive feature of the economic history of Communist eastern Europe is that, in addition to coal, steel, factories and apartment blocks, first-generation Soviet industrialization produced grotesque distortions