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torbiorn.cov 8/9/03 2:42 pm Page 1 DESTINATION DESTINATION interprets and interrelates DESTINATION EUROPE EUROPEthe major political, economic and security developments in Europe – including transatlantic relations – from the end of the Second The political and World War up until the present time, and looks ahead to how the continent may evolve in the future. economic growth The book fills a definite lacuna in the current literature on Europe, as most studies cover only specific aspects, such as the European of a continent Union. Destination Europe by contrast weaves all the different strands of European events together into a single overall and up-to-date picture and gives the reader a deeper understanding KJELL M.TORBIÖRN of the continent and its current and future challenges. The first chapters trace European reconstruction and political, EUROPE economic and security developments – both in the East and in the West – leading up to the dissolution of the Soviet Union in 1991. Later chapters examine the European Union’s reform efforts, enlargement, movement to a single currency and emerging security role; the political and economic changes in central and eastern Europe, including Russia; the break-up of Yugoslavia and the wars that ensued; NATO’s enlargement and search for a new mission; and the current intricate political relations between European powers, and between Europe and the US. Final chapters deal with forces affecting Europe’s future such as terrorism, nationalism, religion, demographic trends and globalisation. KJELL M.TORBIÖRN is Head of the Economic Secretariat of the Council of Europe’s Parliamentary Assembly in Strasbourg, and teaches European Affairs at Syracuse University TORBIÖRN Destination Europe MUP_Torbion_00_Prelims 1 22/9/03, 12:27 pm To my sons Vilhelm and Edvard, that they may live in a Europe and a world of peace, liberty and tolerance MUP_Torbion_00_Prelims 2 22/9/03, 12:27 pm Destination Europe The political and economic growth of a continent Kjell M. Torbiörn Manchester University Press Manchester and New York distributed exclusively in the USA by Palgrave MUP_Torbion_00_Prelims 3 22/9/03, 12:27 pm Copyright © Kjell M. Torbiörn 2003 The right of Kjell M. Torbiörn to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. Published by Manchester University Press Oxford Road, Manchester M13 9NR, UK and Room 400, 175 Fifth Avenue, New York, NY 10010, USA www.manchesteruniversitypress.co.uk Distributed exclusively in the USA by Palgrave, 175 Fifth Avenue, New York, NY 10010, USA Distributed exclusively in Canada by UBC Press, University of British Columbia, 2029 West Mall, Vancouver, BC, Canada v6t 1z2 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data applied for ISBN 0 7190 6572 0 hardback ISBN 0 7190 6573 9 paperback First published 2003 11 10 09 08 07 06 05 04 03 10 987654321 Typeset in Sabon with Univers by Koinonia, Manchester Printed in Great Britain by CPI, Bath Bell & Bain Ltd, Glasgow MUP_Torbion_00_Prelims 4 22/9/03, 12:27 pm Contents Foreword vii Acknowledgements viii Abbreviations ix 1 1945: Europe’s ‘zero hour’ 1 2 Europe’s 1950s: reconstruction and reconciliation; confrontation and oppression 13 3 1960–75: the new Europe takes shape 31 4 1976–89: recovery and hubris; effervescence in the East 46 5 1989–92: Yalta farewell; how new a world? 71 6 Challenges in waiting 99 7 The European Union’s dilemma: towards a union or not? 125 8 A new NATO 169 9 A new European Union 190 10 Where is Europe heading? 236 Appendix: seminal events since 1945 291 References 299 Index 303 MUP_Torbion_00_Prelims 5 22/9/03, 12:27 pm For the mystery of human life is not only in living, but in knowing why one lives. Without a clear idea of what to live for man will not consent to live and will rather destroy himself than remain on the earth, though he were surrounded by loaves of bread. (Fyodor Dostoyevski, The Brothers Karamazov, Book Five, ‘The Great Inquisitor’, 1879) MUP_Torbion_00_Prelims 6 22/9/03, 12:27 pm Foreword In this book I attempt to describe, interpret and interrelate the major political and economic developments in Europe since the end of World War II to the present, and to look ahead to see how the continent may evolve in the future. ‘Europe’ is understood to be not only the European Union but the whole of the continent, from Iceland and Ireland in the west to Russia in the east, from Norway in the north to Turkey in the south. ‘Developments’ sometimes are dealt with so broadly as to touch on the ‘Zeitgeist’ of the different periods covered, and which future generations will no doubt understand better than we do. It is my hope that this book will fill what I perceive as a definite lacuna in the current literature on Europe, and that it will give the reader – whether a student of modern Europe or one interested in European affairs in general – a deeper understanding of the continent and its current challenges, as well as a more solid foundation to assess the factors likely to affect its future. There is no more important task than to ensure that peace, democracy, respect for human rights and the rule of law survive and flourish in a part of the world that has known so much of their opposites, nearly destroying itself and the rest of humanity in the process. These values must be defended anew by each generation, and this can only occur through an understanding of both past and present. If this book can contribute toward this goal, my work will not have been in vain. An explanation is owed about the title, Destination Europe. It alludes to Andrew Shonfield’s classic Europe: Journey to an Unknown Destination, published in 1973. A fair distance has been covered since, but it would be presumptuous to claim that the destination has come any nearer. History, as is known, has a penchant for never ending, and that of Europe is no exception. MUP_Torbion_00_Prelims 7 22/9/03, 12:27 pm viii Abbreviations Acknowledgements I am deeply grateful to several friends for their constructive comments on various drafts of this book. Martin Westlake, a writer on EU and general political affairs; Geza Mezei, a Council of Europe colleague and Hungarian scholar, specialising in the years after World War II; James Bridge, a political affairs adviser; and David Adamson, an academic and formerly of the US State Depart- ment, shared with me their unique knowledge in their various fields of expertise. Ambassador Janos Perényi, also of Hungary and a scholar on central and east European affairs; Stanley Hunt MBE; and Peter Sich, a Council of Europe colleague and an expert on the Caucasus region, also gave valuable advice. Marie-José Schutz of the Council of Europe Library was of invaluable assistance in tracking down various literary sources throughout my work, and I thank her warmly for her support and enthusiasm, as well as her colleagues. Sylvie Baudoin of the Council’s Vedovato Library also helped me greatly in drawing upon that library’s growing body of literature on Europe. Hazel Bastier and Marianne Haddock were always available to type the manuscript in their precious free time. The staff of Manchester University Press believed in the project from the start and supported me throughout. This book could not have been written without the experience I have gained of European affairs during my many years in the Council of Europe – an organisation whose goals and ideals never cease to inspire me. In this context I wish to thank its former Secretary General, Daniel Tarschys, for the encouragement he gave me in embarking on the project when I showed him a first outline in 1999. All the views expressed in this book are, however, my own and should in no way be attributed to any particular organisation or the people mentioned above. MUP_Torbion_00_Prelims 8 22/9/03, 12:27 pm Abbreviations ix Abbreviations ABM Aniti-Ballistic Missile ACP African, Caribbean and Pacific BMD Ballistic Missile Defence CAP Common Agricultural Policy CCT Common Customs Tariff CET Common External Tariff CFE Conventional Forces in Europe CFSP Common Foreign and Security Policy COR Committee of the Regions COREPER Committee of Permanent Representatives CSCE Conference on Security and Co-operation in Europe EAPC Euro-Atlantic Partnership Council EC European Community ECB European Central Bank ECSC European Coal and Steel Community ECU European Currency Unit EDC European Defence Community EEA European Economic Area EEC European Economic Community EFTA European Free Trade Association EMU Economic and Monetary Union EPC European Political Community ERM Exchange Rate Mechanism ESCB European System of Central Banks ESDP European Security and Defence Policy EU European Union FPÖ Freiheitliche Partei Österreichs GATT General Agreement on Tariffs and Trade ICC International Criminal Court IGC Intergovernmental Conference ITO International Trade Organisation LMU Latin Monetary Union MAD Mutual Assured Destruction MUP_Torbion_00_Prelims 9 22/9/03, 12:27 pm x Abbreviations MAP Membership Action Plan MBFR Mutual and Balanced Force Reduction MCA Monetary Compensation Amount NATO North Atlantic Treaty Organisation NRF NATO Reponse Force OECD Organisation for Economic Co-operation and Development OEEC Organisation for European Economic Co-operation OPEC Organisation of Petroleum Exporting Countries OSCE Organisation for Security and Co-operation in Europe ÖVP Österreichische VolksPartei PfP Partnership for Peace SALT Strategic Arms Limitation Treaty (or Talks) SEA Single European Act SPÖ Sozialdemokratische Partei Österreichs START Strategic Arms Reduction Treaty (or Talks) UN United Nations WEU Western European Union WMD weapons of mass destruction WTO World Trade Organisation MUP_Torbion_00_Prelims 10 22/9/03, 12:27 pm 1 1945: Europe’s ‘zero hour’ History teaches us that men and nations behave wisely once they have exhausted all other alternatives.