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The Origins of the EU

In 1929, the French Prime Minister Briand made a proposal to Germany for European Unity to respond to US protectionism. French and German industrialists backed lower trade tariffs. On the Eve of war in 1938, campaign for a Federal Europe and against and gained support in the labour movement including Aneurin Bevin. This argued for the creation of a union of 15 democracies which would include a common citizenship, a defence force, a tariff-free market, a currency, and a postal system. The membership of Federal Union rose to 10,000 by 1940. It received Churchill's backing in 1940 when he proposed an indissoluble union of Britain with France.

Support for Federal Union continued within the European Social Democratic movement during and after the Second World War as an opposition to nationalism seen as the source of war. Winston Churchill in 1946 called for a United States of Europe based on a partnership between France and Germany and called for the creation of a Council of Europe.

In 1950, a proposal was made to create a supra-national organisation to deal with the problems of the European coal and steel industries and the necessary revival of German industrial power. In 1951, the Coal and Steel Community was set up. This was in effect a business cartel. Decisions were immediately binding on all six member states. At this time the European Court of Justice was also set up.

Those who saw this as a step towards a Democratic Socialist Europe were disappointed when proposals for a Federal Political Union were rejected. Instead the European Economic Community was formed.

The EEC created a free trade zone, an Atomic Energy Commission and a Common Agriculture Policy. A protectionist club, which enabled European Capitalists to compete more effectively with America and consolidate Imperialist trade links with Africa and East Europe.

During the 1960's, having been blocked by De Gaulle from joining the EEC, Britain tried to operate a separate European Free Trade Association, but in 1973 the Tory Government eventually joined the EEC. The EEC made provision for the direct election of a European Parliament, however, the Parliament had few real powers.

Steps towards the Euro began with the Single European Act (SEA) of 1987 which pledged, "free movement of goods, capital, people and services". The SEA reduced the democratic elements of the Draft Treaty. It reintroduced majority voting in the Council of Ministers removing power from national governments. It establ;ished the programme to complete the single market by 1992.

The Maastricht treaty of 1991 formed the European Union. It established cooperation in foreign and security policy, justice and home affairs and established an independent central European bank along with fixed monetary targets and convergence criteria.

The EU has expanded to comprise 15 countries and 13 new countries are lined up to join. In January 2002, the Euro came into being. This has strengthened European business by reducing trading costs. Increasingly the EU has moved towards being a power bloc and economic group rivaling the US.