1.15 - European Policy: EFTA & Failed EEC Applications
Key facts and dates
Britain's relationship with European integration during the mid-20th century was marked by hesitation and strategic alternatives, reflecting its global priorities and concerns over sovereignty. The following timeline captures the critical events and decisions that shaped this ambivalent stance.
Timeline of key events
- 1951 – Britain declines to join the European Coal and Steel Community (ECSC).
- 1957 – Britain refuses to join the European Economic Community (EEC) at its formation.
- 1960 – Britain helps establish the European Free Trade Association (EFTA) as an alternative to the EEC.
- 1961 – Prime Minister Harold Macmillan applies for EEC membership, marking a policy shift.
- January 1963 – French President Charles de Gaulle vetoes Britain's EEC application.
Britain's initial reluctance to join European integration projects
In the early post-war years, Britain maintained a cautious distance from European integration initiatives. This stemmed from a combination of economic priorities, geopolitical alliances, and deep-seated concerns about national autonomy, shaping its decisions to reject key European projects.
Reasons for refusing the ECSC and EEC
- Preference for Commonwealth trade - Britain prioritised economic ties with its Commonwealth partners, which offered established markets and preferential trade agreements, over closer integration with European nations.
- Special relationship with the United States - A strong strategic and political alliance with America was seen as vital for global influence and security, leading Britain to avoid commitments that might conflict with this partnership.
- Reluctance to surrender sovereignty - Joining bodies like the European Coal and Steel Community (ECSC) in 1951 or the European Economic Community (EEC) in 1957 would have required ceding control over national policies to supranational institutions, a step Britain was unwilling to take due to fears of losing political independence.
- Economic and political differences - Britain viewed its economy and political traditions as distinct from continental Europe, believing that integration could disrupt its unique structures and global outlook.
The creation of the European Free Trade Association (EFTA) as an alternative
As an alternative to the deeper integration proposed by the EEC, Britain took a leading role in forming a different kind of economic alliance. This initiative focused on trade benefits while avoiding the political entanglements of supranational governance.
Key features of EFTA
- Establishment in 1960 - Britain, along with six other nations (Austria, Denmark, Norway, Portugal, Sweden, and Switzerland), founded the European Free Trade Association (EFTA) to promote economic cooperation without political union.
- Focus on tariff reduction - Unlike the EEC, which aimed for a customs union and common policies, EFTA concentrated on reducing tariffs and trade barriers between member states, preserving national autonomy.
- Strategic alternative - EFTA allowed Britain to maintain economic links with non-EEC European countries while reinforcing its commitment to Commonwealth and American ties, avoiding the deeper integration demanded by the EEC.
Harold Macmillan's shift in policy and the 1961 EEC application
By the early 1960s, Britain's stance on European integration began to evolve under Prime Minister Harold Macmillan. Changing economic realities and a reassessment of global positioning prompted a significant policy shift towards seeking membership in the EEC.
Reasons for the change in approach
- Economic challenges - Britain faced declining industrial competitiveness and slower economic growth compared to EEC member states, leading Macmillan to view membership as a way to access larger markets and stimulate the economy.
- Weakening Commonwealth ties - As Commonwealth countries developed independent trade policies and sought new markets, the economic benefits of these ties diminished, pushing Britain to reconsider European integration.
- Global influence - Macmillan recognised that joining the EEC could enhance Britain's international standing at a time when its post-imperial role was diminishing, offering a new platform for influence.
- Application in 1961 - Reflecting this shift, Britain formally applied to join the EEC, marking a departure from previous reluctance and an acceptance of the need for closer European ties despite sovereignty concerns.
De Gaulle's veto and the impact of rejection in 1963
Britain's application to join the EEC faced significant opposition, culminating in a dramatic rejection by a key European leader. This event had profound political and strategic consequences for Britain's European policy.
De Gaulle's veto
- French opposition - French President Charles de Gaulle, a staunch defender of national sovereignty and French dominance in Europe, opposed Britain's entry into the EEC.
- Veto in January 1963 - De Gaulle formally vetoed Britain's application, arguing that Britain's close ties with the United States made it incompatible with the EEC's vision of an independent Europe.
- Economic structure concerns - De Gaulle also cited Britain's distinct economic structure, particularly its global rather than continental focus, as a barrier to integration, fearing it would dilute the EEC's cohesion.
Impact of rejection
- Domestic repercussions - The veto was a significant embarrassment for Macmillan's government, weakening its credibility and exposing divisions within Britain over European policy.
- Strained European relations - It highlighted tensions between Britain and key European powers, particularly France, delaying closer cooperation and reinforcing perceptions of Britain as an outsider in Europe.
The turning point in Britain's international position
The rejection of Britain's EEC application marked a critical moment in its post-war history. It forced a reassessment of national strategy and underscored the challenges of redefining Britain's role in a changing global landscape.
Long-term significance of the failed application
- Shift in self-perception - The veto prompted Britain to confront its diminishing global influence, as exclusion from the EEC highlighted the limitations of relying solely on Commonwealth and American alliances.
- Future European engagement - It set the stage for renewed efforts to join the EEC later in the decade, reflecting a gradual acceptance that Britain's economic and political future was tied to Europe.
- Reevaluation of priorities - The failure underscored the need to balance sovereignty concerns with the benefits of integration, shaping debates on Britain's international position for years to come.