Was under the old Austro Hungarian Empire by rq7M923N


									               Chapter 14   THE UNITING OF EUROPE

     Europe and America are pulling apart; they diverge on many
issues. Europe is moving toward unity on two tracks, the economic
and the military, the European Union and expansion of NATO to 19
members. But it will take some doing before Europe is truly
united. Right in its own backyard, Europe could not handle
Yugoslavia's breakup. The Balkans are an unhappy case study.
UNPROFOR was ineffective; only the U.S.-led IFOR and KFOR worked.

     NATO's purpose is unclear. Set up by the North Atlantic
Treaty in 1949 and now with 16 members, NATO helped West Europe
militarily, economically, and psychologically to resist Soviet
influence. With the end of the Cold War, however, the fear that
held NATO together has receded in Europe. NATO is simultaneously
expanding and hollowing out, a dangerous combination.

     The hopeful movement in West Europe is toward unity.
Starting with the Marshall Plan and progressing through the Coal
and Steel Community, Europe's six core countries in 1957 founded
the Common Market, which now prefers European Union. Now
numbering 15, EU members have cut tariffs among themselves to
make a single economy. Tired of using Eurodollars, the EU in 1991
set up the EMU, which created the new euro currency and ECB.
Politically, the EU is bureaucratic rather than democratic and
ripe for reform. France's de Gaulle limited supranationality and
vetoed Britain's entry. He also ordered NATO and U.S. bases out
of France. Some Europeans want to keep national sovereignty;
others want a full federation. Many wonder whether the EU should
be wider or deeper. Like NATO, the EU looks to expand eastward,
but this will take some years, as Brussels isn't eager for new
poor members, who need financial assistance.

     Can Europe defend itself? During the Cold War, the U.S. kept
nuclear weapons in Europe to deter Soviet attack. Did it work?
It's hard to prove why something didn't happen. Psychologically,
it was probably important until West Europe got on its feet.
Europeans began to worry that a bellicose U.S. was willing to
incinerate Europe in war. U.S. troop strength in Europe is now
down to 100,000, and the EU is trying to build its own rapid-
reaction force. With France in the lead, many Europeans resent
the U.S., its economy, dominance, culture, and even foods. The
"politics of resentment" pull the U.S. and EU apart.

     The real problem with Europe now is its actions as a
protectionist trade bloc, one that tries to limit U.S. imports by
means of tariffs, quotas, and subsidies. The EU may have twice as
many farmers as it needs, but their surpluses are lavishly
subsidized. The U.S. grows bitter and retaliatory at this. A box
discusses the classic comparative advantage argument for free
trade. Another box discusses the European tendency to turn

inward, looking after its expensive welfare states that are
plagued by high taxes, budget deficits, slow economic growth,
high unemployment, an aging population, and protected economic
sectors. The tendency to protect local producers could lead to a
three-sided trade war between the EU, the Pacific Rim, and NAFTA.

Essay and Discussion Questions

1. What geographic area does the NATO treaty cover? Why do
   Europeans and Americans sometimes disagree over this?

2. How could you demonstrate that U.S. aid and troops saved West
   Europe from Soviet takeover? Can one prove why something
   did not happen?

3. Which is better, a weak and divided West Europe that depends
   on and follows the lead of the U.S. or a strong and unified
   West Europe that goes its own way and competes with us

4. Which is better for Europe, to become "wider" or "deeper"?
   Which is better for the world?

5. If Adam Smith's ideas on free trade and comparative advantage
   make such good sense, why is it so difficult to get them

Multiple Choice

6. The NATO treaty covers
    *a. Europe and North America.
     b. Europe, North America, and the Persian Gulf.
     c. Europe, North America, and Japan.
     d. wherever its members designate.

7. Alliances are based chiefly on
     a. ideology      b. geography    *c. interests      d. values

8. The North Atlantic Treaty was signed in
     a. 1947          b. 1948          *c. 1949          d. 1950

9. The three latest NATO members are Poland,
     a. Sweden, Austria.             c. Estonia, Slovenia.
     b. Lithuania, Latvia.          *d. Czech Republic, Hungary.

10. The country that twice voted to not join the EU is
    *a. Norway      b. Finland      c. Switzerland     d. Ireland

11. The precursor to the Common Market was the
     a. EEU          *b. ECSC         c. OECD          d. EC

12. The original six members of the Common Market include all but
     a. France        b. Italy       *c. Britain      d. Belgium

13. _________ was/were long under the Ottoman Turkish Empire.
     a. The Baltic states          c. Austria-Hungary
    *b. The Balkans                d. Central Europe

14. Central Europe is characterized by all these except:
     a. Was under the old Austro-Hungarian Empire.
     b. Largely Roman Catholic.
     c. Turned quickly to democracy and market economies.
    *d. Borders Russia.

15. What was "East Europe" during the Cold War is now called
     a. Central and Southeast Europe.
    *b. Central Europe and the Balkans.
     c. Middle and East Europe.
     d. the ex-Communist countries.

16. In ____, ___________________ pulled out of Yugoslavia; then
      ______________ pulled out in _____, leading to bloodshed.
     a. 1990, Bosnia and Slovenia; Croatia, 1991
    *b. 1991, Slovenia and Croatia; Bosnia, 1992
     c. 1992, Croatia and Bosnia; Slovenia, 1993
     d. 1990, Slovenia and Croatia; Bosnia, 1991

17. De Gaulle's conception of Europe was a
     a. unified entity under French leadership.
     b. loose confederation under U.S. leadership.
    *c. traditional "Europe of fatherlands."
     d. democratic federal system, a United States of Europe.

18. By the 1990s West Europe had become a single
     a. nation    *b. economy     c. federation       d. competitor

19. France and Spain
     a. dropped out of   NATO.
    *b. belong to NATO   but not its unified command structure.
     c. belong to NATO   and to its unified command structure.
     d. often question   the further utility of NATO.

20. The   text suggests labelling as Central Europe
     a.   what was called East Europe during the Cold War.
    *b.   the portion of East Europe from Hungary north.
     c.   all of Europe that does not touch the Atlantic.
     d.   the area between the Elbe and the Bug rivers.

21. The EU now has ____ members.
     a. 12         b. 13              c. 14      *d. 15

22. The 1991 _______ treaty aimed at a single European currency.
    *a. Maastricht    b. Utrecht     c. Antwerp     d. Hilversum

23. Ricardo urged free trade based on
     a. open markets               c. competitive advantage
    *b. comparative advantage      d. open trade blocs

24. The EU's new currency is the
     a. ecu.    b. eurodollar.      c. Deutsche Mark.   *d. euro.


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