Post-War European Economic Boom and the Birth of the EEC

The Glorious Thirty: Post-War European Economic Boom (1945–1973)

Thanks to financial support and technological advancements, European countries experienced significant economic growth following World War II. This stage is known as the Glorious Thirty (1945–1973).

Key Features of the Glorious Thirty

• Sustained Economic Growth.
• Shift to Consumer Goods: Heavy industry was gradually displaced by the production of consumer goods, fostering a society of consumption and encouraging the consumption of domestic products.
• Tertiarization: The service sector peaked, while agriculture's economic contribution decreased.
• Demographic Shifts: Characterized by rural depopulation, the baby boom of the sixties, and increased migration.
• Women's Role: The role of women in the labor market became more significant.

This stage ended abruptly with the Oil Crisis in 1973.

The Marshall Plan and Containment

To contain communism and prevent the extension of its sphere of influence, the United States quickly provided assistance to Western Europe through the Marshall Plan, launched in 1947. This credit program aimed to provide financial support for:

• Stabilization of currency.
• Rebuilding damaged infrastructure.
• Unifying economic policies.
• Achieving overall economic stability.

Aid-receiving countries were required to join the OEEC (Organisation for European Economic Cooperation), a body responsible for monitoring aid distribution and encouraging member countries to adopt capitalist-inspired economic policies.

Steps Toward European Economic Integration

As economic recovery strengthened, several initiatives were launched to further integrate the European economy:

• 1949: Creation of the Benelux customs union between Belgium, the Netherlands, and Luxembourg.
• 1951: Formation of the ECSC (European Coal and Steel Community). The ECSC, which included the Benelux nations, France, and Germany, along with Italy, became the immediate predecessor of the European Economic Community (EEC).

The Formation of the European Economic Community (EEC)

The EEC was formally established with the Treaty of Rome (1957). The founding member countries were: the Netherlands, Belgium, Luxembourg, Italy, France, and Germany. Starting in 1973, the EEC began to expand with the integration of Denmark, Ireland, and Great Britain (GB).

Context and Influence

Beyond the economic reasons mentioned, the formation of the EEC was also influenced by the forced withdrawal from the Suez Canal, an event where the old European powers, especially France, felt internationally marginalized.

The French position contrasted sharply with the British approach, which relied heavily on the Commonwealth. Consequently, the Franco-German initiative formed the core nucleus of the future union of European states.

Treaty of Rome Provisions

In March 1957, the Treaties of Rome were signed, ratifying the creation of Euratom (European Atomic Energy Community) and establishing a common market based on the 'Four Freedoms':

1. Free movement of persons.
2. Free movement of services.
3. Free movement of goods.
4. Free movement of capital.

EEC Objectives and Policies

The objectives of the treaty were to promote the harmonious development of economic activities, ensure continuous and balanced expansion, achieve increased stability, and rapidly improve living standards. Furthermore, the treaty decreed the creation of common policies for agriculture and transport.

EFTA and Later Expansion

Separately, Great Britain (GB) created the EFTA (European Free Trade Association) in 1959, before joining the Common Market in 1973 alongside Ireland and Denmark.