Berlin blockade o direct challenge to Western influence First nuclear bomb detonated by USSR o before this time, the US has nuclear advantage to balance out giant USSR army but this development is alarming Czechoslovakian fall o wasnt a country liberated by the red army in WWII o wasnt seen as a country behind the Iron Curtain unclear as to what side theyd be on o shows Soviet influence is greater than they think it might be same thing could potentially happen in Italy and France because they too have communists in power -Shift from Marshall plan to NATO Idea now that there might be a military threat to Western Europe Europe has shown that it needs American aid in major wars Marshall plan was a short term plan whereas NATO is a long term plan o Marshall was essentially a strategy of equal policy o Ill help you and then youll be my equal o but when it comes to military, America has a distinct advantage nuclear o Europeans and esp. the British push for this NATO alliance empire by invitation -NATOs effects on European Integration Less concern with rivalries and a European hegemon -Why NATO is only military, why it never develops to something further American volition o they are only expecting to militarily defend Europe o create military structure which will give them the power to keep USSR at bay o also provide huge amount of money for Western Europe to redevelop its own military o but they dont want to go much beyond this NATO is too big to negotiate further integration o Composed of 12 states at this time, some of which are not willing to compromise on other issues Norway, Finland, Britain o European integration needs to start small
Week 4: Schuman Plan 10/18/2011 5:02:00 AM -French motivation for launching it We need German recovery because o if you let Germany become impoverished and put down, it could fall to radicalism o Germany is the front line of the Cold War so we need recovery o West Germany was a window dressing to the East competing to show who is more culturally dynamic and which system is more successful want to make Germany look good so it proves that capitalism is best Previously, used production limitations o this led to unrest for Germany o led to more cost for American and Britain if they have to support the population France wants to be a protagonist o lost the battle on the Cold War, lost the battle on Germany so it can win on creating a European framework o knows this move will endear France to America France goes to Germany and Dean Acheson before Prime Minister Beven Has both Cold War and economic contexts -German motivation for saying yes allows a sense of equality o Germany is not yet a fully sovereign state o its also a pariah state not part of NATO, not a member of UN o ties itself to the West magnet theory Germany wants reunification eventually but want it happen on their term West Germany wants East Germany to join them on their terms rather than a compromise worried West might want to do a deal with the Soviets fear of neutrality as defined in the Stalin notes o Germany has learned that the last thing it wants is to be the power between East and West this has led to disaster and wars on both fronts during WWI and WWII o how do you prevent your allies from selling you out and your successors from undoing your effort? tie yourself to the West through legal treaties -British motivation for saying no Co-leadership with France would be a demotion NATO eases Cold War fears o not as panicked as France or Germany WEU 10/18/2011 5:02:00 AM -The British and the WEU Worried about lack of American support following EDC failure o as long as there are U.S. troops in Germany, there is a guarantee that a Soviet invasion can be stopped by American nuclear deterrence o British take threat of agonizing reappraisal seriously due to Eisenhowers perceived desire to move out of Europe German policy o starts to become more sovereign Bonn Convention EDC was supposed to manage this but once it fails, there is no legal means to manage this o British want to revive Germany and they use this new plan to help accomplish this once the EDC fails o Saarland area around the Saar river that French and Germans still argue about resource-rich French try to annex it but they cant Solution is to Europeanize this land Euro-region rather than belonging to France or Germany Cannot have animosity between France and Germany during the Cold War Creation of WEU o Expansion of Brussels treaty 6+1, British finally included o Military guarantee stronger than NATO o However, its largely an empty box its purpose is not clear, doesnt set out specific (non-military) goals for cooperation which will ultimately lead to its demise -Why the French say yes when they said no to the EDC British involved now o powerful Britain can balance out Germany o strongly worded guarantee of WEU is particularly comforting to French Afraid to say no again o send message of being ungovernable Much less encumbered o by the time French voted on EDC, there were many things attached to it that threatened French sovereignty -Why does it then move back to the 6 without the British? Benelux concerns about being left behind Britain doesnt seem to want to use WEU for further European cooperation o other countries DO Concerns about bilateral agreements between just France and Germany o Britain fine with this o Other countries like Italy, Benelux want in
Euratom 10/18/2011 5:02:00 AM -U.S. policy supporting Euratom See this as a replacement for the EDC disappointment Monnet factor o Close personal relationship with U.S. figures o Says that French wont buy EDC but will buy Euratom o Lessons from EDC integration cant happen without French support France cant be forced into integration if it doesnt need it Germany cant really say no to European plan but French can Commercial incentive o U.S. companies can benefit from equipping Europes atomic energy sector no other big markets even America itself isnt very quick to take to atomic energy have enough coal etc Proliferation argument o U.S. wants no other countries to have nuclear weapons o At this stage, however, the cats out of the bag Russians have the bomb and GB and France are already working on their own atomic projects o If these other states can get the bomb, so can Germany direct fear of Germany fear of the effect a German bomb would have on the Soviet Union o Try to lure the French and British research programs out of the shadows you can keep a closer eye on nuclear programs if theyre out in the open hope to stop the transition from civilian to military use of nuclear technology EEC 10/18/2011 5:02:00 AM -Whether the EEC was a function of the Cold War Cold War context used to be unavoidable but by this point, it is less pressing o Death of Stalin (1953) o Geneva Summit between East and West (1955) o Korean War and First Indochinese war end o Austrian treaty o German issue of rearmament has been solved, and the European security issue is less pressing o States begin pursuing integration for non-Cold War Learning from EDC past failure o When integration tried to deal with issues like Cold War and military issues, it failed o Better to just set that aside o War/military issues are seen as the core of national sovereignty, particularly in France by far the hardest thing to integrate Nature of the EEC organization o Bureaucratic bifurcation People that work at EEC are commerce specialists, economic or legal minds rather than security or foreign affairs specialists Domestic civil servants a lot of meetings take place between ministers and someone from Commission these civil servants are coming from trade/agriculture ministries but not many foreign ministry people Could have intersected with Cold War if trade was allowed with states behind Iron Curtain but Soviets dont allow them to recognize it o Soviets against European integration, its a threat to their power and rearming Germany is particularly divisive o this changes somewhat in 1960s/1970s to have unofficial dialogue between COMICON and EEC o Official recognition doesnt come til Gorbachev -In a Cold War Context Europeans worried about becoming insignificant, so they integrate (taking into account Cold War stuff) -The Issue of U.S. policy U.S. can act as controlling factor against British o keep them from standing in the way of process Helps get GATT approval Kennedys Grand Design 10/18/2011 5:02:00 AM -Kennedy identifies several problems with the European relationship Economic o Gap between U.S. and Europe economically is fast closing and Europe is becoming a great economic power o When U.S. started funding European military assistance, Europe had nothing, but now that theyre emerging, how should the U.S. deal with funding military assistance? o Balance of payments problem More money going from U.S. to Europe than vice versa Military expenditure American investment Political o De Gaulle as a French problem o De Gaulle as a manifestation of a greater European problem the idea that Europe in general could become a third force in Cold War o Threat made more concrete by Fouchet Plan European intergovernmental political integration that would coordinate foreign policy o Would mean an overall move away from the Atlantic organization Strategic o ICBMs U.S. is now directly threatened because Soviets can reach them with nuclear weapons If a U.S. president launches a weapon in defense of Europe, he is now putting his own country at risk makes him less likely to do that o Flexible response Looks at situations on a more case-by-case basis rather than massive retaliation Graduate your response to the nature of the problem of the time Ex: if soviets invade with conventional weapons, it makes more sense to respond with conventional means than suddenly nuclear weapons o European response Would have to contribute more conventional forces themselves To have flexible response, one person has to be clearly in charge and now there is more dissent amongst the ranks independent nuclear deterrence in Britain and France is now impossible -So how does Kennedy solve this? Economic o Trade Expansion Act (TEA) of 1962 Does for the U.S. what EEC did for inter-European trade Gives president authority to put forth new GATT round to push for tariff liberalization o How does this help? Balance of Payment problem solves by boosting U.S. trade and getting money from Europeans rather than cutting U.S. expenditure within Europe Dominant Supplier Clause For those sectors where Europe, the EEC, and the U.S. account for more than 80% of global production, the President has the authority to seek a 100% tariff reduction if the British come in, the expanded community and the U.S. actually meet that 80% level in a lot of sectors Political o Manage De Gaulle via: Encouraging Britain to join EEC their presence will make sure that EEC is outward and liberal British presence in integration process will stop Europeans from moving away from Atlantic relationship Britain will keep smaller states from gravitating toward French working on Germans to stay loyal Strategic o Multilateral Force (MLF): a multi-nationally manned naval force with nuclear weapons, which could be fired ONLY with U.S. consent would give Europe a taste of nuclear weapons while U.S. remains in charge -Reactions British respond relatively well (MLF apart) o Apply to join EEC for U.S. reasons and other interest German response positive o Like free trade idea School of thought that perhaps this economic integration with the U.S. will undermine inter- European integration in the EEC and such France o Rejects MLF and says France will seek its own nuclear deterrent with or without U.S. help British dont like MLF either but they dont deny it in public, they try to negotiate private compromise with U.S. o Veto British EEC membership Dash U.S. hope for community enlargement Dominant Supplier Clause becomes much less effective very few sectors can get to the 80% threshold if the British are not a part of the community No longer have British voice to encourage Atlanticism -Ultimate result GATT negotiations do occur and TEA is passed but has less radical effect MLF limps around for a while before fading out in mid-60s Period of hostility between De Gaulle and U.S./UK o very Cold War centered o give undue credence to scare stories about French reversing their alliances and turning to the East De Gaulle and Europe 10/18/2011 5:02:00 AM -Visions of De Gaulle and why they exist Intergovernmental Europe not Supranational or Federal o Strong belief that the nation is the main actor in world politics o Doesnt really buy into concept of any ideology past national interest doesnt call it USSR, calls it Russia because he sees the nation-state as unchanging A feeling that the ideological alliance with America is illogical o he wants to restore France to central player on world stage o idea that the Americans could loosen their grip on the West and this would result in Soviets loosening their grip on the East Everything goes back to the failure of Yalta o believed this created an artificial vision of Europe France wasnt present at this meeting so if it puts itself back in a position of centrality it can undo this original sin o Europe from the Atlantic to the Urals -Alliance Partners Pro-Germany o Because of its legal limits, ghosts of its past, lack of UN membership, lack of colonies, it will always be a very strong but ultimately inferior partner o therefore France will always be able to take the lead Anti-Britain o British presence would make it very hard to convert other states away from Atlanticism o Too threatening to French power and too close to America The Double Crisis of 1965-1966 10/18/2011 5:02:00 AM -Empty Chair Crisis and French retreat from NATO -Is this one crisis or two? Both a rejection of Western institutions and a challenge to the status quo but not a total rejection o symbolic rejection Empty Chair Crisis apparently a very forceful rejection but there are mitigating factors such as leaving certain deputies and turning up at certain meetings NATO Withdraws from command structure but not the treaty structure Didnt withdraw French troops from Germany and participate to a certain extent Cant defend Germany without defending France since the clash would happen at the German border France softens blow by doing things like allowing NATO jets to use their air space also let them use pipeline o Strange one step forward toward rejection and one step back that mitigates these factors but the symbolic rejection is still very important Timing Issue o 1963-67 is the period where De Gaulle is at his most powerful Why was he less powerful before this? Algeria crisis politically divided France can do more divisive things once he accomplishes this first goal Election Wasnt initially elected and not directly elected til 1965 Doesnt get his parliamentary majority til this time Post-68 he has less power because of student protests, etc. o Empty Chair Crisis starts in June 1965 and finishes in January 1966 and NATO decision is March 1966 Empty Chair Crisis is already mostly resolved by the time NATO decision comes along Probably to keep from fighting a two-front war o Shortly after withdrawing from NATO, he visits Moscow can show up as the man who is independent of entangling alliances Why do outsiders link these two crises? o Concerned about France changing sides o What is France trying to show? Tell countries like Hungary/Poland that they can do what France did toward the Americans to the Soviet Union Thumbing nose at the two pillars of the Atlantic system: European Intergovernmentalism & NATO will later go on to attack Bretton-Woods Shows that he is prepared to challenge o People interpreting this crisis link them because they seem to have a similar goal -Substance of the Challenges Empty Chair Crisis o Is it all bluff or does he mean it? France gets certain benefits from the community Agricultural using the community spreads the cost of agriculture among all the states rather than France spending disproportionately more still vulnerable o subsidies from community allow many more farmers to exist than would otherwise o fear of peasant unrest Industrial Does spectacularly well under the community Politically France has position of leadership from the community o Germany too shackled to take the lead and Italy just isnt politically powerful De Gaulle is trying to have his cake and eat it, he wants independence from the community to gain power and the power that comes from its position within the community Want to stay within but perhaps act as if he doesnt need to NATO o How important is French symbolic withdrawal? Strategically, it doesnt make a difference Europe is no more vulnerable than it was before It is, however, a pain in the neck over time these issues are dealt with, but in the short term, it is a huge inconvenience o This makes it safe for De Gaulle because he can make a dramatic gesture without risking Western security Germany couldnt have done it, but France could Harmel, NATO, and the WEU: Responding to the Gaullist Challenge 10/18/2011 5:02:00 AM -What is pushing the Harmel exercise process? Is it all about responding to De Gaulle or is it about the changed circumstances of the Cold War? Cold War explanation o NATO is coming up for review would be possible for people to leave France HAS just left command structure o Core mission is security mission but at this time it moves to more political arena to deal with impending dialogues that will be needed with East balance between different types of defense in theory, NATO could be doing more but that kind of thing had never gone very far o Arms control suggests that tension is lessening now that successful arms negotiations can take place Nuclear Test Ban Treaty Nuclear non-proliferation treaty Who takes part in these issues? U.S. controls all of Europes nukes but previously hadnt let them participate in the negotiations o Dtente seems to be making NATO less relevant Vietnam and anti-Vietnam protests also lessen bloc solidarity o East is investigating a conference on pan-European security East tries to look like peace keeper wants its position in Eastern Europe to strengthened looking for recognition o Why does NATO respond? dont want to lose control of the negotiating position stick together o NATO needs to look at the Harmel exercise is because East-West dialogue is no longer just a possibility, its a reality How is De Gaulle an explanation for the Harmel process? o The way in which Harmel is done is in itself meant to send a signal responding to De Gaulle plan put forth by a Belgian, NOT an American committees are headed by Europeans, NOT Americans meant to show that NATO really is multilateral in nature o Show dynamism on the part of the alliance all of the problems going on with De Gaulle trying to leave, etc. make the alliance look rather bad -Long-running issue of Germany and atomic weapons NPG: Nuclear Planning Group Germany can be a part of the negotiations when deciding to use nukes but cant actually have its own nuclear weapons Return of Germany as Foreign Policy Actor10/18/2011 5:02:00 AM -In 1950s, Germany is a passive foreign policy actor Why? o German peoples saw failure of past foreign policy/military exploits following world wars o Avoid reviving fear in allies o Get into pattern of dependence Ex: Stalin notes addressed to British, French, Americans not Germans so they need to rely on them to deal with it Hallstein doctrine o Wont talk to any states who recognize East Germany which essentially means non- relations with the Eastern bloc -Big actor at this point is Adenauer so it is his game -Where/Why does it start to change? Berlin Wall crisis o Brandt acting as mayor of Berlin has really tangible effects of the Hallstein doctrine in front of his eyes o can see the dead end nature of current policy Crisis of De Gaulle vetoing British membership o Germany is the only successful counterweight to France o if the French are throwing their weight around, the Germans are perhaps the only ones who can stand up to them If it remained passive, the status quo upon which it was depending would fall apart o worse to NOT act -Linkages between Westpolitik and Ostpolitik Why crucial? o Scary for Western allies to see Germany finally acting and then doing so toward East Three audiences o Allies Show that you can still trust Germany by ramping up what theyve been doing before more involved the community help get British in make well in NATO sign non-proliferation treaty o Domestic Also helps show domestic opponents that theyre not heading toward the East criticism leveled by CDU when SDP takes powers o Eastern Bloc -Reactions to Ostpolitik Irritates Americans because it feels like Germany is pursuing a separate dtente Atmosphere of discomfort for Brits and French o combined with growing German economic power Enlargement, EPC, and Kissinger 10/18/2011 5:02:00 AM -Importance of Britain joining the community Longstanding belief that cant discuss common foreign policy without the presence of the British What Britain brings to the table o Another big powerful country joining o International connections links with colonies links with America o Habits and mindset of a country that is used to being an important foreign policy actor adds weight and impact operatives who really can count before the French were the most foreign policy experiences but Brits are less eccentric British themselves WANT to matter in this institution o see it as a way of maintaining or boosting Britains international power o since this is meant to become a key instrument of their foreign policy, they are willing to invest more -Why does EPC policy work in Cold War but not in Middle East? Europe used to slow-moving negotiations o Cold War works a bit slower and CSCE negotiations are particularly slow o Foreign policy negotiation with CSCE happens within European context its not one foreign minister o In Middle East, things happen extremely quickly and reactions must be ramped up Consensus o CSCE and issue of dtente is much more agreeable, less divisive want to get recognition of the community increase trade flow of goods and perhaps more importantly, information human contacts can actually have an impact on the Cold War downside: can be legitimizing status quo this is a point of economic crisis slightly unequal negotiating position since USSR is united and Europe is composed of separate states with different policies forces Europe to unite and coordinate position at a new level to resist pressure could use EC or NATO use EC because it doesnt have American interest at the moment everyone thinks this is a useful exercise o In Middle East, there is less ability (and perhaps incentive) to come together Arab states impose embargo against all Israel-supporting European states which divides them from the beginning since some states are more affected than others -Kissinger Year of Europe o U.S. had been focused on Vietnam, China, etc. at this time o Europe doesnt want to be ignored but also doesnt want to be told what to do o Kissinger doesnt give any mention of the European political project o Maximizes American bargaining power while exacerbating Europes internal divisions o European response is to try to boost their own internal cooperation Schmidt, Giscard, and Carter 10/18/2011 5:02:00 AM -Carter generally supportive of human rights and says it matters does it in a style that is very public and puts pressure on the USSR violates Soviet notion of dtente which they consider non-interference in their domestic politics -Creates East-West tensions Europeans wary of this of course they care about human rights but they are more concerned with the issue of dtente -Dtente is becoming less popular in the U.S. Right-wing critique of dtente o think they are letting the Soviets bamboozle the U.S. Soviets cheating in the third world, not staying hands off o allowing a corrupt regime to continue Left-wing critique o We can keep talking to Soviets but when we do, we need to raise problems with them and try to get them to reform o Put pressure to treat citizens better and reform their ways -Very different from European concern with stabilization both American party critiques are threatening to the East-West stability -Neutron bomb affair New generation of weapons (ERW- enhanced radiation weapon) enormously controversial Americans decide to press ahead with it and Germans know its likely to be used in Germany o Schmidt has to fight tooth and nail to get government acceptance of this Just about manages to get it through then Carter changes his mind Schmidt feels that he was not only not consulted enough in the first place, but also wasted his time Carters credibility gone at this point -European Monetary System (EMS) Initially Schmidt is not very into this idea but by late 1977 he is pedaling his own plan for monetary integration worried about inflation o European monetary union could help ward this off Americans want Germans to increase the value of the German Mark o would make American markets better, help other markets sell more to Germany o this isnt very attractive to Germany Germany cant do much to affect Mark-Dollar exchange but with monetary integration, could peg Mark via French, Italian, currency without making the same concessions they do to the Americans If Europeans able to act collectively, their capacity to talk back to Americans is much greater Becomes further source of transatlantic discord because it worries the Americans o certain American discomfort at what is seen as an attempt to marginalize their centrality in monetary affairs Early 1980s 10/18/2011 5:02:00 AM -A second Cold War and its effects? Poland o President declares Marshall Law in December of 1981 o Will Soviet Union invade? o Poland brings the Cold War tensions closer to home Afghanistan o Soviet invasion in 1979 o Finally undermines superpower dtente o Americans introduce economic sanctions o period of high tensions Olympic Boycott o U.S. boycotts Moscow in 1980 Grenada o 1983 o Coup by left-leaning faction who Americans feel are too left-leaning so they intervene creating messy situation Series of economic sanctions following Poland Steps toward re-armament o Star Wars o Euro missiles and SS20s in USSR o MX Missiles o Reagan revives B1 bomber and redevelops neutron bomb Disarmament halted o Congress doesnt ratify SALT I o Two-track method: Euromissiles meant to be developed at the same time as disarmament talks and if disarmament talks are successful, they wont be used Europeans thought they were signing up for disarmament When disarmament stalls, they find themselves in the position of armament How does this affect integration process? o American relationship damaged Siberian pipeline Europe planned pipeline from Russia so it could get oil from there instead of Middle East during crisis U.S. says none of their companies (or affiliated countries) will help them build it Part of American response to Polish crisis Meant to hit Soviet Union hard Gas and oil were very crucial to their economy o Impetus for grouping together to form third way o Arguments about Cold War blunt American discontent about Mediterranean enlargement Greece, Spain, Portugal Americans sensitive to enlargement because they are having economic issues more members worsen relations with U.S. economy Europeans can deflect this by saying theyre enlarging due to Cold War vulnerability Promise of EC membership use to stabilize South -Role of Economics Creates new tensions o global currency fluctuations dollar especially o doubts about Reagenomics o Europeans being particularly protectionist due to recession, upsets Americans o Europeans want to trade more with the East while Americans are entering a period of boycotting the East Western European was doing much more trade with East to begin with -New generation of leaders Big personalities with important domestic projects o Thatcher in 1979 o Mitterand in 1981 o Kohl in 1982 Re-launching Europe 1980s revival 10/18/2011 5:02:00 AM -Economic crisis background -Weakening of superpower dtente strains relationships Eastern trade becomes less optimistic in outlook Strained U.S.-Europes relationships o Euro missiles Europe thought they were signing up for disarmament but now they realize these may actually be launched -Why does this stimulate plans for political integration? Individual action isnt very successful, try collective action In the European Community at this time, there isnt much of anything going on The way to rediscover original purpose seems to be to pursue political angle will be easier to overcome small economic issues if you tackle it from political angle Genscher-Colombo Plan looks to coordinate foreign policy Why does this plan fail? o its too vague o lacks big state enthusiasm -Economic target Freedom of goods, services, capital, and labor Focus initially is on the free movement of goods though these things were originally incorporated into the Treaty of Rome, states were unofficially were getting around it to deal with economic downturn o free movement of goods had been almost completely gained at this point o labor not pushed as far as it should have been o capital not pushed as far hard to change money to stop speculation -Why is this successful? Very specific, concrete plan New center-right leaders enthusiastic about it o more freedom, less intervention which is a change from what was going on with previous strategies Economic integration will in itself bring on more political change o majority voting forces people to pay more attention in negotiations because theres a real possibility to lose if you dont compromise Europe and the Cold War 10/18/2011 5:02:00 AM -Did Western Europe play a role in Eastern Europe increasing relations (human contacts) o tourism o television, radio stop jamming increasing governmental contacts o East German-West German leaders really increase contact Western Europe holds Eastern debt o Hard to say the extent to which the East knew about the standard of living in the West was used by Eastern Europe as propaganda by this late period, there is still a small amount of propaganda but its harder to sell these lies Disappearance of German bogeyman o East used to say West Germany was a huge threat West Germans actions used to justify this to a point (Hallstein doctrine) With ostpolitik, becomes more difficult to maintain this myth -Germanys role in reunification Bottom-up in East Germany o mostly led by the people not political leaders o nobody is really in control in East Germany Kohl is faster to pick up on this movement than others and moves very quickly o reassures the West that this change will be stable A German Europe or a European Germany? 10/18/2011 5:02:00 AM -What role did Europe play in Kohls vision of Germany? Europe and Germany two sides of the same coin o if you want to support unified Germany, you need to support European integration as well o to stop the stigma of German reunification, make it clear youre retaining close ties with Europe Kohl and Genscher not always on same page o Germany system means you can have a government with two people piloting foreign policy who are party rivals o working together but also positioning themselves for next electoral battle Germany worried about how other countries will react to it o others may see them as a threat has to do with German position central pivot between East and West economic strength Germany would be becoming much larger How is Europe the solution for this? o political integration means that Germanys big size wont be as threatening o integration at its core is meant to level off differences between big and small o Kohl sees himself as heir to Adenauer European integration worked for Germany once, it can do it again o Element of continuity: want to show that Germany is not in a state of change America could go home, NATO could collapse, so its very reassuring to have a German chancellor who emphasizes continuity lessens sense that everything could change -How did reunification alter the balance of power within the EC? East Germany essentially becomes a member of EC without formal enlargement process Cant pretend anymore that Germany is equal to France/Italy/UK and should have same number of MEPs There was a belief that combining West + East Germany would create massive and successful economy European monetary system already dominated to an extent by Deutschemark o would reunification only increase this? o move toward single currency is to try to keep this from being an overly German system Figures are wrong, East Germany is actually very poor so now you have West Germany carrying East Germany o short post-unification boom but this is followed by economic downturn How does this affect Europe? o Some level of negative effect on them o temporarily dents Germanys image as the economic power debate stops being centered only around German model -How interlinked were Thatchers anxieties about Europe and anxieties about Germany? Thatcher is very very public about misgivings about unification Also skeptical about European integration though she had initially played the game By the time German unification comes on the scene, she has moved to a much more negative position on integration Thatcher has become nearly impossible to advise at this point