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FRANCE & THE EUROPEAN COMMUNITY.
Term Paper ID:28927
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Essay Subject:
Discusses economic, political & cultural concerns re: unification. Integral role of France. French multiparty system, economic growth issues. Brief history of the E.C.... More...
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Paper Abstract: Discusses economic, political & cultural concerns re: unification. Integral role of France. French multiparty system, economic growth issues. Brief history of the E.C.
Paper Introduction: FRANCE AND THE EUROPEAN COMMUNITY:
TRADITIONAL PAST, TRADITIONAL FUTURE
The dream of a unified Europe has long held a place in the slumber of European leaders; today, in the wake of the European Union, signs that successful economic consolidation has occurred are showing with increasing frequency, indicating that perhaps in the modern context some age-old dreams may indeed be realized. The burdens of achieving a united Europe have been plentiful throughout the last fifty years, as traditional superstitions and fluctuating economies have threatened the stability of the region and subsequently any hopes for progressive unification. However, the trend today seems to provide hope that many economic, political, and cultural concerns surrou
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Jacques Chirac, electedpresident in that election, campaigned for the elimination of unemployment,only to see unemployment figures rise after his election (Powell 51). "Europe 1992: A Truly Common Market?" Barron's. Robert Lever, in his essay"Les Capitalistes", sums up this phenomenon as he states: "The newaggressive posture in French corporate life is a major shift and isaccompanied by moves by French companies to consolidate and expand asindustries become more global" (24). Despite concerns among nation states that a shared European currencymight threaten national identity and governmental authority, most EUmembers struggled to meet the EMU criteria. Essentially, this prediction dealtwith issues greater than the euro itself; success of the euro against thedollar would announce Europe's ability to resist American economic andfinancial domination in world affairs (Andrews 15). Europeans on Europe. 2 .Powell, Bill. As the EU continues to gain a foothold in Europenew issues regarding economic privatization, competition with the UnitedStates, anti-American sentiment in government, and strained relations withother members of the Union such as Britain have arisen. In placing Franco-British relations under strain, surely the stability of the EU ischallenged. In February of1988, the European Community Commission published the proposed SecondBanking Coordination Directive, intended to have the following effects: 1)to remove the remaining internal EC barriers on freedom of establishment inthe banking sector; and 2) to allow for full freedom of banking servicesacross national frontiers. Europe. Thus, the traditional protectionist stance seemsto have survived in France; in accusing the United States of attempting toachieve cultural unipolarity, the French are remaining consistent. Mergers and acquisitions, hostile and friendly takeovers,privatization, etc.-- inevitably, when it comes to participating in aglobal economic market, it is impossible to avoid contact and comparisonwith the United States. As French firms are attempting to adapt to a single Europeanmarketplace and globalization of industries, so these firms are becomingmore aggressive; even former state-controlled companies are jockeying forposition in order to acquire their competitors. In 1993, the Maastrichttreaty was ratified, and by 1995 fifteen European nations had become fullmembers to what was now an established European Union. October 3, 1988.Maclean, M. Attacking the USCongress for its perceived isolationist and unilateral behavior regardingthe Comprehensive Test Ban Treaty, French foreign minister Hubert Vedrinemaligned the US, stating "we cannot accept a politically unipolar world,nor a culturally unipolar world, nor the unilateralism of a single hyper-power" (O'Sullivan 32). In M. Aswas highlighted earlier, so far the advent of the euro has seen favorableresults. Termed a mixed presidential-parliamentary system,France hosts a multiplicity of political parties. In failing to rise above the clamorof competing voices, French politicos have suffered, and so has the country(28). All in all, however,protectionism remains the theme; French incentives to retain nationalidentity and culture cannot and will not disappear. "Chirac Therapy". 141-159. However, in spite of Delors' approval as a socialistpolitician, that approval does not spill over into EC affairs; theMaastricht Treaty, up for debate at that time, is favored by French votersby only a slim majority ("European Union" http://encarta.msn.com). In this, it is clear that the French mixed presidential-parliamentarysystem, though multi-faceted and shifting by nature, is not so ill-equippedto handle the goings-on of the European Union. But one thing remainscertain: France will always be France. Oxford: Blackwell, 1991. Inthis, France has made the most of protectionism. .Adam, N. Interestingly, John Laughland, in his essay "Why FranceDoesn't Work" claims that this has been so due to the corporatist structureof French politics, within which political leadership is beholden to thecompeting claims of trade unions, trade associations, political parties,government establishments, and others. Boosting exports and lowering unemployment have been two suchfavorable results of the euro in France; overall, France's independenteconomic growth in 2 may exceed that of the European Union as a whole(Andrews 15-17). Issue 389, September, 1999.Liscio, J. Today, the system is up andrunning, and growing pains are inevitable. However, the French aim to achieve a currency union in 1999 with therest of the EU may have ultimately been enough. Ultimately, France only seemed to support thecentral bank idea because it offered hope for damage control: a centralbank would reduce the extent of political and economic dominance overEurope by Germany (Adam 39-4 ). The European Community: The Contradictions of Integration. The future will reveal how deftlythese differences may be both protected to the satisfaction of the memberstates as well as transcended in the interest of overall Union cooperation. The Maastricht Treaty set a strict criteria that memberstates had to meet if they were to be deemed acceptable for the EMU, slatedto produce a unified currency by 1999 (European Unionhttp://encarta.msn.com). THE DAYS THAT LIE AHEAD Indeed, the objectives of the European Union are difficult toachieve. In this, it is not difficult toperceive how European interests may develop in opposition to those of theUnited States. New York: St. As one US-based merger analystreveals in Lever's article, "There's definitely a new climate in Europenow. The burdens of achieving a united Europehave been plentiful throughout the last fifty years, as traditionalsuperstitions and fluctuating economies have threatened the stability ofthe region and subsequently any hopes for progressive unification.However, the trend today seems to provide hope that many economic,political, and cultural concerns surrounding unification have been calmed.Inflation across the euro zone is running at less than 2% a year,unemployment has fallen below 1 % of the work force, and economic growthfor 2 is set to meet or exceed 3% (Andrews 16). Ultimately, a series of intergovernmental conferences (IGCs)were held, yielding a handful of agreements that became the Treaty onEuropean Union- also known as the Maastricht Treaty (European Unionhttp://encarta.msn.com). FRANCE IN A UNIFIED EUROPE: STEPS TOWARDS INTEGRATION France was one of the first member states in the European Community.Support for the EC has traditionally been strong from most Frenchgovernments. In 1952, France was oneof six European countries to create the European Coal and Steel Community(ECSC), which would ultimately serve as a forebear to further economicunions. Until then, the eurowill remain a virtual currency, an abstraction that may well be the mostsignificant indication of whether or not the European Union will ultimatelythrive or wilt. He comments thatsuch tensions are inevitable given that the process of integration has beenlargely capital-driven, a fact which is naturally complicated in anenvironment in which member states have shown sharp divergences of interestfrom the start. April, 1996.Sutton, M. Regardless, the aim of economic integration in Europe has beenachieved; in countries such as France, the task now lay in addressingtraditional fears surrounding this integration, and in assessing thepossible future implications. In November of 1999, President Chirac called onthe European Union to adopt a joint but independent foreign and defensepolicy -- excluding the United States from participation. In order to comply with the Directive, Franceremoved its then-current ceiling on franc-dominated lending to nonresidentsby French banks and allowed all French residents- individuals andbusinesses alike- to open bank accounts abroad (Sutton 56-61). France had shown great dedication to theprinciples of economic integration in the years leading up to 1992; likemany member states, in spite of any fears, few efforts were spared when itcame to readying for the EMU. From an economic standpoint, largermarkets were known to promote competition and therefore elevate overallproductivity and standards of living. The electorate has been disenchanted as a result; in 1995 theproportion of French voters refusing to make an electoral commitment was atits highest since universal suffrage was introduced ("About France, FrenchPolitics... Fortunately, the future seems to bode well for France in the EuropeanUnion. Though a painful exercise for the people, in the year2 France could well see its economic growth reach 3.5%-- possiblyputting it ahead of Germany in the euro zone (Andrews 16; "Roadblocks toMonetary Union" 8). Not if the French can help it. A.M. The nations of Europe will never relegate themselves to such asecondary level; France will never become to the EU what California is tothe US- one star of many on the flag of United Statehood. CSA Publications, 199 .Bruce, L. That the value of the euro against the dollar has slipped by morethan 15% in its first year of use does not necessarily reveal a shoddyEuropean economic union. THE EUROPEAN COMMUNITY: A BRIEF HISTORY Upon consolidation of the European Coal and Steel Community, theEuropean Economic Community, and the European Atomic Energy Community in1967, the European Community was formed. 2 .Banks, Arthur S. The Gaullist movement, the liberal-centrists, the Socialists, the Communists and the Far-right all infiltratethe French system, with each achieving variable success. Recently, France chose not to lift a world-wide ban on British beefexports, feeling uncomfortable with the European Union's scientificcommunity ruling regarding the safety of British meat. The SEA was set to regulate all of the activities of the EC; it wasalso responsible for all policy development geared toward the creation andimplementation of a single market by the end of 1992. Of these, onlythree are true potential governing parties: the Gaullists, the liberal-centrists, and the Socialists. Yet fears that a shared European currency wouldthreaten French national identity and governmental authority may have beenassuaged on some levels. But, in theUnited States, cooperation among the states is a given; in Europe among themember countries, it has not nor will it be so easy. By 1968 all tariffs between member states of the EC were eliminated.However, this did not seem to do enough; in the 198 s not all restrictionson trade within the EC had been abandoned, nor had the EC eliminatedinternal customs frontiers. Perhaps predictably, thevarying EEC countries illustrated different attitudes towards this concept,with many member states doubting that the institution would work. Maclean & J. Thus, it is strange that such superstitions regarding integration havealso been so prevalent. By 1967, the ECSC would stand as one of three supranational groupswhich had consolidated to form the European Community (EC) (European Unionhttp://encarta.msn.com). In the 198 s, for example, the Socialist partyenjoyed a spell of power that in retrospect seems almost paradoxical. In the EC in the early9 s, France was the only member nation that was perceived as having achance for continued growth in the auto-output arena. "The Two Souls of Marianne: National Sovereignty versus Supranationality in Europe". And for this,the world should be thankful. If this is true, a new bipolarity is in the works, with aconsolidated Europe battling the dominance of the US: dollar against euroin a bid for world domination. A look at the most recent developments may providesome indications. Though time-worn fears have surfaced again and again, they haveultimately served as means towards a productive end: economic stabilitywithin the body of an emerging world power. Even in terms of economic goals, the Community has been faced with incompatible objectives: there has been an uneasy relationship between fostering competition within the EC and the need to develop large efficient companies able to compete on the global scale. Andnow, a mere 9 years later, the trend in France in the wake of EuropeanMonetary Union is radically different: it is starkly capitalist (Lever 23). Indeed, the upshot of these trends in France relate directly tosuperstitions that have always surrounded European integration: that undera Union a degree of national sovereignty must be surrendered to an externalbody and that therefore, protectionism must be embraced (Riemenschneider145-147). A program to reduce public-sector spending, to reduce central-government spending, and to keep tightlimits on budget deficits, inflation, and government spending seems to haveworked (Powell 15). Throughout these years, France has remained uniquely true to itself,consistently concerned about the threats that unification might presentregarding the perpetuation of the French language, culture, and tradition.Politically, France has utilized a mixed presidential-parliamentary system,which has oscillated between governments, creating a climate of change tomatch the turbulence of the times ("About France, French Politics...http://www.geocities.com/~france). In 1985, the SingleEuropean Act (SEA) proposed a package of amendments and additions toexisting EC treaties. In recent decades, radical changes have occurredwithin the French system, largely due to reactions to developments withinthe European Community. Different parties exist today than were prevalent after the war, andchanging coalitions have led to the creation of new organizations orderedaround specific issues and concepts. In this, the SEAfocused on the following: 1) removing physical, technical and fiscal barriers 2) promoting health and safety at work 3) advancing research and development in technology 4) strengthening the Community through economic and social cohesion 5) creating an environment in which each member state brings its own economic and monetary policy in line with those of its neighbors (Williams 2-3) Under the SEA, the EC eventually established a timetable and structurefor monetary union (in 1989), in which member states would adopt a singlecurrency. Martin's, 1992."Roadblocks to Monetary Union", World Press Review. And perhapsEuropean nationalism and French nationalism can each thrive under the haloof European union. Maclean & J. Distinct currents within these threepolitical movements can confuse; integration among small parties occurs asdo splits and counter-movements (About France, French Politics...http://www.geocities.com/~france). January, 1988.Derbyshire, Ian. Nor will a desire tobe a major player in a world economy that will surely dominate politicaland economic policy throughout the 21st century. Monetaryintegration followed, with a stringent economic criteria established as anacid test for inclusion into what would become the European Monetary Union(European Union http://encarta.msn.com). 1988.Williams, A.M. If culture is not retainedfully, then culture may not be shared fully. Indeed, by 1998, severalnations had not met the Maastricht criteria, however, the EU decided to goahead with the single European currency anyway- and 11 of 15 EU membernations adopted the euro on January 1, 1999(European Unionhttp://encarta.msn.com). However, the United States of America is an entity to consider. Works Cited"About France, French Politics, the Political System and the French Political Parties." The Maudit Group 1998. 21-39. Today, it is not difficult to perceive the relationship betweenprotectionist behavior and capitalist behavior. European Trends. Regional economic goals have also clashed with the overall growth aims of the community (113). Together, the economic and politicalviewpoints merged under the assumption that economic strength was the basisof political and military power; therefore, a fully integrated Europeaneconomy would be less likely to witness political conflict betweenindividual European nations (European Union http://encarta.msn.com). Williams writes: The contradictions of integration run much deeper than a conflict between the divergent interests of member states. National Review., Vol. But is the European Uniontruly on the path to superpower status? In 199 , Jacques Delors(then EC Commission president), received a 58% approval rating among Frenchvoters, making him the most popular socialist politician in France(Derbyshire 189). http://www.geocities.com/~france). Political Handbook of the World: 199 . To elaborate: In 1981, the Socialist victory asserts the party's riseto power; by 1988, though 13 seats short of an absolute majority in theAssembly, the Socialists are able to form a government with the support ofsome leftists and right-centrists (Banks 217). December 11, 1995.Riemenschneider, R. Under the flag of a unified Europe, these fears areagitated. THE EUROPEAN UNION TODAY HOW WILL FRANCE BEHAVE IN THE NEW BIPOLARITY? And, for large nations with large economies, such asFrance, the effects of single currency continue to bode well for thefuture. EU Affairs. Ultimately, French policy toward the European Union can be expectedto continue to evolve. The findings: that France appeared to be betterprepared for integration than most (Liscio 8-9, 2 -36). Faction and strife among countries within the European Union surelycannot assist the collective venture for true cohesion. In response, theEuropean Commission initiated infraction proceedings against France, and anew wave of xenophobic protest erupted in the UK. Martin's, 1992.O'Sullivan, John. And, the major elements of thissystem still operate within a continually changing set of electoral andparliamentary alliances. "Living With the Euro in France". These times of rapid economic change may indeed usher in an era ofeconomic bipolarity the likes of which has never been seen. 51, Issue 23, December 6, 1999."The Political Scene". Twenty-four years later, EC members would sign the Maastricht Treaty,which officially created the European Union (EU). Politics in France. An interesting turn of events, when one considers thata major reason that the French aspired for the EMU was because the Unionwas seen as a way to harness the economic power of Germany for Frenchpurposes ("Roadblocks to Monetary Union" 15). In recent months, the European Union has seen some interestingdevelopments. Howorth(eds.), pps. In this, France willmost likely continue to define itself as FRANCE, and not as a mere memberstate of EU. "Over the Horizon: A European Central Bank." International Management. In France, traditional fearssurrounding integration are still in place, albeit often assuming shapesand dimensions not consistent with the past. The cold war has passed, and in the place ofcompeting military hegemonies we may witness the birth of true competingeconomic hegemonies, with the US on one side and the European Union on theother. Williams explains the basis of these fears in his book TheEuropean Community: The Contradictions of Integration. The Maastricht Treaty, ratified in 1993, founded the European Unionand was intended to expand economic, social, and political integrationamong the member nations; and, the European Union was newly committed tothe Economic and Monetary Union (EMU)-- the culmination of the desire for asingle currency. In this, anti-Americanism has been on the rise in the EU,particularly in France. And, in this new economic configuration, it may be the cooperation ofthe member states within the EU that ultimately determines its success.Anti-American sentiment and even practice is easy to achieve, and may infact be healthy for competition between the hemispheres. Since the inception of the modern European drive for economicunification, France has played an integral role. On the contrary, in therapidly changing global economy, France may be quite capable of making thechanges necessary to remain competitive. And yet, France has been classically perceived as being in a uniqueposition to be a major beneficiary of integration. Signed in 1986, the SEA required that the EC adoptmore than 3 measures in effort to completely integrate the economies ofthe member nations (now totaling 12 in all)(European Unionhttp://encarta.msn.com). Striking that France has assumed such an aggressive posture in itscorporate life given the extent to which the French political scene hassuffered in recent years. Corruption has been allowed to flourish underthe multi-party system in France, and many well-known public figures havebeen jailed, including cabinet ministers, mayors, and leadingindustrialists. London: Chambers 199 ."European Union". These arguments have all beenparticularly effective in a France where immigration battles have takenplace for many years; these battles spring from the perceptions share bymany French citizens that there are simply too many foreigners in France-taking French jobs and infiltrating French society, subsequently destroyingFrench culture. More likely, the fall of the euro is really justthe rise of the dollar, which has been powered by nine years of economicgrowth in the US. Initially, the European Union was ordained as an antidote tonationalism (O'Sullivan 34). AN EXAMINATION OF THE FRENCH SYSTEM France labors under a multiparty system that has experiencedconsiderable change since World War II. October 28, 1996.Lever, Robert. Time will undoubtedly usher in many changesin Europe under the euro and the new consolidation. At thatpoint, the European Central Bank will begin to issue euro coins andbanknotes, and traditional currency in member nations will cease to belegal tender (European Union http://encarta.msn.com). As was noted earlier, inthe 21st century, France has deftly maneuvered itself into better positionwithin the global economy by adopting a more aggressive capitalist method.Industries working to gobble one another up seek simply to bulk-up forcompetition at the global level; in establishing French industry as aplayer world-wide, France will remain strong in the EU, and the sanctity ofFrench life and culture will remain protected as a consequence. "Why France Doesn't Work." National Review. Similarly, any move by the EC that has appeared to enhance theeconomic position of the Japanese has been opposed by France, once againtaking a consistent protectionist stance; in this case opposing activitythat would be potentially detrimental to French automotive interests. Clearlyrooted in a desire to protect the integrity and soundness of Frenchculture, this stance has been utilized by the French in the past time andagain. Politically speaking, itwas understood that a supranational organization might be the only truedeterrent to international conflict. A low rate of inflation (2%), falling unemployment(to below 1 %),and encouraging economic growth (3% or better) all combine to create anoptimistic outlook for the Union (Andrews 16). And how will French policy towardthe European Union and the rest of the world continue to evolve in this newglobal configuration? Those who have opposedintegration have used these fears of the public, echoing that integrationthreatens national sovereignty, jeopardizes French industry, andcompromises the integrity of the borders. Microsoft Encarta Online Encyclopedia 2 . Indeed, the fact that the climate in Europe iswell evidenced on a smaller scale in the climate in France is a good sign.If consolidation is to be a truly effective exercise for the member states,those countries in which political and economic shifts can happen rapidlymay ultimately have the inside track in the global market. 1988.Andrews, John. . New York: St. Laughland, John. However, support has not always been as strong in the Frenchbusiness community or among the French people. In M. France was also willing to support a central bank in Europe in orderto reduce the power of banks in other member states, though the Frenchbanking industry did have concerns regarding such a move. Aconsolidated Europe is essentially a play for an established United Statesof Europe, with subsequent superpower global status to match. Newsweek. United Kingdom Country Report (EIU). "Days of Rage in Paris". These kinds of hostile bids [in France] would not have been seenseveral years ago"(23). "Les Capitalistes". On the other hand,careful steps taken by France throughout the course of EU evolution havesafeguarded the integrity of the French way of life. Used only for electronic money transfers and for accounting purposes,the euro will not fully replace local currencies until 2 2. Howorth (eds.), pps. The result: the multi-party system, subject to shifting coalitions andfragmented leadership. In Europe, it isperhaps these very cultural and political differences historicallyprotected by nations like France that are ultimately the most divisivefactors with regard to EU politics. Advocates of thecentral bank argued that a common EEC currency managed by an EEC centralbank was a proper main goal for the EEC to have; the ensuing EuropeanMonetary System (EMS) would ultimately serve to keep 8 of the 12 EECcurrencies within a narrow exchange-rate band. Early in the process of currencyconsolidation, the French government touted the euro as an unflagginglyvaluable commodity; not only predicted to be as strong as the franc, itwould also be stronger than the dollar. In these exciting times of economicsolidarity and freer trade, it is the beauty and richness of diversitywhich makes the endeavor a worthwhile one. After all, the process has already involved more than fifty yearsof planning, union forming, and theorizing. "The Unfinished Chrysalis: Market Forces and Protectionist Reflexes in France". In this respect, France mayhave the right idea after all. Deeming this effect a "fiercer brandof capitalism," Lever indicates the remarkable adaptability of Frenchpolicy to the removal of European barriers to trade and investment flows(23). "1992 'Is Upon Us.'" International Management. A major step towards a unified Europe, the ECgrew largely out of the efforts of French statesmen Jean Monnet and RobertSchuman. As aconsequence, the European Currency Unit would fail to gain widespreadacceptance in Europe. With integration a near inevitability oncethe Single European Act was passed (not to mention the following MaastrichtTreaty), the French government went farther than any other in the EEC tobolster public support for integration, spending respectable sums ofgovernment money on public relations and positive propaganda (Bruce 44-46). As Europe and the euro grow stronger, superpower statusto the region will not be long in coming. Another step was needed. Admittedlya more aggressive form of protectionism, but protectionism nonetheless. With the euro just over a year old, indications regardingthe economic stability and general success of integration are showing. A study undertaken in1992 by a panel of four London-based economists and strategists discussedthe implications of the European Community's barrier-free trading plan withrespect to France. "French Banks Face Challenge of a Single Financial Area". As fears and superstitions run rampant and are voiced with passionin the halls of legislation, behind the scenes strategic economic steps aretaken to ensure success in the changing competitive market. These men believed that if the nations of Europe were to resume adominant role in world affairs, they must speak with one voice andcollectively command resources comparable to those of the United States(European Union http://encarta.msn.com). Indeed, asbusinesses in France maneuver to become more competitive, descriptions ofthe new capitalist approach clearly echo age-old United Statesphilosophies. Essentially a reaction to post-WWII desires for peace and stability, the EC was perceived as a possibleblueprint for a healthy, dominant economic and political system that wouldultimately eliminate the threat of another war. France established areciprocity rule for Japan, announcing that it would maintain aregistration limit of 3% on new Japanese vehicles until French automakerswere given reciprocal access in Japan (Maclean 29-3 ). FRANCE AND THE EUROPEAN COMMUNITY: TRADITIONAL PAST, TRADITIONAL FUTURE The dream of a unified Europe has long held a place in the slumber ofEuropean leaders; today, in the wake of the European Union, signs thatsuccessful economic consolidation has occurred are showing with increasingfrequency, indicating that perhaps in the modern context some age-olddreams may indeed be realized. British Prime Minister Tony Blair and French Prime MinisterLionel Jospin have since seen their relations with one another sour -disputes such as the British beef scandal intensify ideological differencesthat in turn widen a rift between two major players within the EU ("ThePolitical Scene" 12-14). Europeans on Europe. The EuropeanUnion arguably will (and some say already has) achieved super-power statusin the world at large, leading to new debates and perspectives among theFrench government and citizenry regarding what the future should hold fortheir beloved homeland. If this occurs, European nationalism is sure to surge ascompetition in an "us-them" system gets underway. On the contrary, the statistics mentioned aboveindicate the opposite. The banking industry in France has also held an important role withrespect to integration, and has raised a number of issues. However, in spite of these gains, the euro itself has not fared sowell in comparison with the dollar.
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Dissertation Station
11270 Washington Blvd.
Culver City, CA 90230
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