THE ECONOMIC WEEKLY ANNUAL NUMBER FEBRUARY 1962 One Europe? (From a Continental Correspondent)

What is most striking to an impartial observer of the European scene is the manner in which the old political Europe coexists with the new political Europe. Everything coexists in Europe to an asto­ nishing degree colonial sentiment with and colonial sentiment ; One-Europe sentiment with nationalist sentiment. De Gaulle represents one type of European; there are other types. Some are incorrigible federa­ lists who are in favour of a completely united Europe; some are confederalists who advocate much looser ties, and there are the nationalists who think the Common Market is a fraud intended to deprive them of their national patrimony. And yet; in numerous ways unity, at least in action in certain narrow fields, is being seen. The Common Market idea is gathering momentum though what shape it will ultimately take is too early to say. Will the removal of Customs barriers, the standardisation of laws relating to prices, salaries and wages and the prevention of cartels usher in political unity ?

ARNAUD de Borchgrave, Chief The Western and sharp : "I don't like Germans," European Correspondent for Assembly, consisting of the Inner he said, and in those three words Newsweek tells the story of how, Six and Britain. he poured the hatred of genera­ as he was crossing the Franco- The Council of Europe, which is tions. German frontier some days ago, the Inner Six. plus Britain, plus Can a United Western Europe, he was dutifully stopped by a 21- the European neutrals (, which is the dream of the West year old Customs' Inspector and and ) plus German Defence Minister, Herr asked to open his hags. Borchgrave most of the other Western European Franz Josef Strauss, ever be a recounts that his first thought was countries and Cyprus, with Com­ reality ? How long will it take for how come a 21-year old European monwealth countries as observers. such a unity to be hammered out? should choose the Customs service The N A T O. And what will be the contributory as a career when it was being The new Organisation for Econo- causes ? shouted from the house-tops that .rnic Cooperation for Development Once upon a time ----- and that the aim of the Common Market (OECD). was not so very long ago —Europe was to close down inter-European Nationalism : Rockhed of Policy was a seething mass of growing Customs. Borchgrave's reportorial All of them proclaim one aim, nations, each jealous of the other, sense finally got the better of him one goal the close working together each trying to do the other in the of Western Europe and yet the and he queried the Inspector. "I eve. The defeat of Hitler in the signs are that, despite all talk of looked into that carefully," Broch Second World War and the rise of unity, there is still a long way to grave quotes the Inspector as sav­ the Soviet colossus contributed to go before that unity is achieved. ing, "and I am reasonably sure of two things : the disappearance, he- Nationalism is not just an Asian or spending the next 40 years in the hind the Iron Curtain, of a large African phenomenon. It remains Customs service. We graduated 950 number of countries and the band­ the rockbed of policy in many cadets from the Customs School ing together of Western Europe countries in Western Europe. this year, more than ever before'. out of sheer fear of its eastern What is most striking to an im­ neighbour. And vet everywhere in Europe partial observer of the European scene, however, is the manner in Industrial Progress : Leavening there is talk of a Tbnted Europe— which the old political Europe co­ Force or. to be more specific, of a United exists with the new political Europe. At the same time another force Western Europe. There are all man. Everything co-exists in Europe to was acting as a leaven : indus­ ner of organisations intended to an astonishing degree. Colonial trial progress. The disappearance promote just that. Indeed, right sentiment with anti-colonial senti­ of the eastern countries behind the now. there are no fewer than five, ment, one-Europe sentiment with so-called assemblies or parliamen­ nationalist sentiment. I was driving Iron Curtain and the rise of the tary bodies in Europe, none of one day from to Soviet Union as a major military power spurred the West European which has real power and some of and stopped at the border town for countries to join NATO. Though which at least are at cross purposes. a glass of beer. The proprietor of NATO's content is reportedly To name them : the little cafeteria saw my car and its German number-plate first and positive, in fact it is there solely The European Parliamentary stiffened up. When I approached to meet any possible future Soviet Assembly, consisting of Members him. he was still visibly annoyed. challenge. In outlook and principles of Parliament from the Six Com. To my inquiry about the cause of it is negative as many instances mon Market countries. his annoyance, his reply was quick will illustrate.

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THE ECONOMIC WEEKLY ANNUAL NUMBER FEBRUARY 1962

Attending NATO Army manoeu- De Gaulle represents one kind of NATO. NATO particularly, is vrea, some time in 1960, I chanced European; there are other kinds : taking an interest in Portugal, to ask one of the Army observers some are incorrigible federalists southern and . In the why the French forces seemed to who are in favour of a completely Common Market jobs are made be indifferent. "Did you notice united Europe ; some are confeder­ available to nationals of the mem­ that, too ?" replied the observer, alists who advocate much looser ber countries irrespective of where and added : "But that is well ties and there are nationalists who they come from, even though the known here. The French are not think the Common Market is a system is working none too well. over-enthusiastic about N A T O". fraud intended to deprive them of But there are thousands of Italians their national patrimony. working in Germany and in . Then there is the time when Ger­ When they put in the necessary man forces were trying to negotiate According to the Rome Treaty, number of months on a particular with for training facilities there should have been agreement job, they become entitled to social for German armed forces. The among members of the Common service benefit prevailing in the story somehow leaked out and there Market on a common agricultural country where they are working. was a hue and cry all over Wes­ policy by January 1, 1962. The Disparities are most noticeable in tern Europe that Germany was Germans hedged in this because agricultural employment. In Italy, teaming up with General Franco. they wanted to protect their far­ 44.8 people are employed in agri­ The German project had to be mers. The French kept pressing the culture out of every 100 of work­ dropped. Bonn would have nothing Germans to open their markets for ing population. In France, the num­ to do with Madrid. But Bonn could French agricultural goods but en­ ber is 28.9, in 22.8, not understand the incongruity of countered stubborn resistance. Itali­ in 17.9 and in the United States flirting with ans have been very reluctant to Belgium and the 14.2, Franco. Why, it was asked in concede the right to Germany to a sure guide to labour "efficiency" Bonn, was it right for Washington suspend imports of fruits and vege­ in the field of agriculture, costs to deal with Madrid and wrong tables. Every country fighting to and standards of living. But the for Bonn to follow suit ? serve its national interests : that is matter is complicated by the fact the picture one sees at Brussels. Then there is the question of that in Germany, labour is heavily German armament itself. Germany Unity : In Narrow Fields subsidised and were a common may be a member of N A T 0, but agricultural policy to be decided Brussels itself is a study in con­ it is still suspect in the eyes of upon, German farmers would be trasts. It is the capital of a coun­ the West. The West European the first to protest. Indeed, as re­ try in transition, which even when Union would like West Germany to cently as January 1 this year. Herr it is striving to work towards One be a member of N A T 0, but if Werner Schwarz, the West German Europe has to struggle against it comes to Germany manufacturing Minister of Agriculture, was telling fissiparous tendencies within its guns and tanks, ships and sub­ German farmers that any curtail­ borders. The differences between marines, then size and tonnage is ment of the transitional period the Flamands and the Walloons in­ carefully specified. For all one provided for by the Rome Treaties side such a small territory as Bel­ knows, West Germany is really not in the pooling of agricultural re­ gium make one wonder whether an independent country. sources would be rejected. Hi- European unity can ever really be emphasised further that he would France : "Mystery Wrapped in attained. not accept the accelerated scaling- an Enigma" And yet, in numerous ways, uni­ down of protective measures for No one really knows where ty, at least in action in certain German agriculture demanded by France stands. France is a "mystery narrow fields, is being seen. Take the Brussels Commission and by wrapped in an enigma''. General de the case of the European Coal and other members of the European Gaulle would say on the one hand Steel Community. During 1960 and Economic Community. that he is all for the Common Mar­ 1961, it granted a total of about Confused Picture ket, whose specific goal is the poli­ DM 14 million for the "re-adapta­ tical unity of Western Europe but tion" of 11,400 French, Belgian and If I have given a confusing and then do everything possible to keep German workers who became un­ confused picture of trends in Eu­ French individuality distinct. Some employed when coal and iron mines rope it is because the picture is time ago, Euratom (the European and coking plants were closed down indeed confusing and confused atomic agency constituted under the as a result of Community policy. though the European Community Rome Treaty) had a French head Belgium received the greatest part has before it a picture of what it who was a dedicated European of! this aid for re-adapting 8,800 is aiming at. This is well described whose boast was that the agency was mine workers. But the point is that in a booklet just put out by the a splendid example of a supra' practically all the men who were information service of the Commu­ national institution that 'functioned turned out of their jobs have been nity and some sentences are worth smoothly without interference from found other jobs and not necessarily quoting. Here they are. chosen at its six member Governments, Then in their own countries. random : de Gaulle moved in to have the Economic disparities in different "The drive for European unifica­ man sacked and replaced by a countries exist, naturally, though an tion which began ten years ago with nationally-minded former French effort is being made to help the the Schuman Plan, and whose ulti­ Interior Minister who abhors the "under-developed" nations within mate aim is a united Europe, has whole idea of a federal Europe. the Common Market and within reached a decisive stage." 167. ANNUAL NUMBER FEBRUARY 1962 THE ECONOMIC WEEKLY

"The European community is Then one has to take into ac­ to rationalise industry, one can building a Europe which will be count the fact that the fortunes of only imagine. It is conceivable capable of standing on its own feet the Common Market are intimately that industrialists will get together and playing a full part in this new bound with those of the United and plan what product to make, world. It is not an alliance States, which reminds one of the where and at what price, consider­ or an inter-governmental organisa­ cry of many in Europe that what ing only the availability of raw tion; the technical and economic they really want to see is a Com­ material, technical know-how and nature of its work should not mask mon Market comprising in addi­ talent. If that would not contri­ the fundamental political significance tion to the Inner Six and the Outer bute toward the making of the per­ of what is being done". Seven' the United States also. But fect European it is difficult to "The spur to economic expansion that, as is realised, is a pipe dream. imagine what else will. It is possi­ and the consequent rise in living Even if only a common Western ble to conjure up the day when standards which will result from monetary policy is envisaged there every European, whether he be an die opening of frontiers, could not are difficulties which seem insur­ Italian, a German or a Frenchman mountable. The United Slates now will have the choice of the same be maintained without simultane­ has $ 17,000,000,000 in reserves range of agricultural and manufac­ ous moves towards the and $ 21,000,000,000 in liquid tured products and thus the same harmonisation of the member sta­ liabilities. Britain, which had the range of tastes. Distinctions then tes' national policies and towards other world reserve currency has will be not along national lines, but genuine common policies for the only $ 3,000,000,000 in reserve and along class lines; when that stage Community." $ 11,000,000,000 in liabilities. But is reached truly then would one "The political implications of the Common Market countries see One Europe. developments in the Common Market which have no world reserve so far have provided ample evid­ currency responsibilities have More Potent than NATO ence that economic unity is only a $ 16,000,000,000 in reserve and no The Common Market thus, more step on the road towards political outstanding liabilities. How, under than NAT O, can be the medium unification of Europe." such circumstances, the hopes of of change. The wheels of the Com­ What Price Political Unity ? the dreamers are to come true mon Market are moving slowly — The picture we have then is of bothers the civil servants working too slowly for some tastes —-' but a politically united Western Eu- in the impressive building of the they are nevertheless moving. What rope, but there are no indications Common Market headquarters in the Common Market will then mean yet what is meant by it. Will Wes­ Brussels, But they are not de­ to the non-Common Market world tern Europe, for example, include pressed. it is too early to stale. With the Austria, Switzerland and the Scandi­ They believe that the pressures removal of Customs barriers, the navian countries ? According to of industrial progress will some­ standardisation of laws pertaining to some reports, the United States is how bring all the Western countries prices salaries and wages and the not sympathetic to the idea of together, whether they like it or prevention of cartels, would political associate membership of the Com­ not. And they are probably right. unity have been ushered? How would mon Market by such neutrals as the Common Market deal with what Austria and Switzerland on grounds For, it is amazing to see how uni­ may be residuary problems of mem­ that the expansion of the Common formity is being thrust down Eu­ ber countries ? Will West Germany Market thuswise would sap the ropean throats. One can travel give up its claims for East Ger­ vitality of its political arrange­ from one end of Western Europe many or rather for German re­ ments. And in such things the to another and never really feel unification ? Will France act as if United States has a say. that one has travelled through half the Algerian problem did not exist? a dozen lands. Everywhere one sees Then there is the question of a And if Britain and Portugal were bigger and bigger buildings in the constitution for a politically united to join the Common Market, would cities and small cottages springing Europe. How is unity to be framed it deal with their problems as if up in the suburbs. One may see for such disparate nations as they were its own ? In other words, the Renault in French cities, the France, the Netherlands and Ger- would the outside world be one day Volkswagen in German cities and many ? And what is to become of forced to reckon not merely with the D A F in Dutch cities, but by such a unity when Britain is ad­ an individual country, but with and large the dominant motif of mitted into the Common Market ? the power of the entire Common every country is prosperity. Britain has a constitutional monar­ Market of Western Europe ? These chy. While the Netherlands too has a By 1966, according to the Rome are fascinating questions. monarchy, its cabinet is appointed Treaty, one should be able to buy not by the leader of the majority an egg or a television set in all One thing is certain : the Com­ party, but by the Queen herself on countries of the Common Market mon Market idea is gathering mo­ her own responsibility. No one at the price fixed in the country of mentum and, its own dynamism. What can predict what France will be origin with the result that the same shape it will ultimately take it is after de Gaulle or Portugal after television set — to mention one too soon to predict. But it is Salazar, if and when the Common industrial commodity — would cost reasonable to think that should it Market is extended to include the no more in France than in Ger­ succeed, it would have ushered a Outer Seven. So new problems many or Italy, there being no Cus­ revolution more far-reaching per­ arise crying to be solved. toms barriers. What that would do haps than the French Revolution. .168