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The European Union’s External Relations

Book Review

Politics and Policy in the European Community

Stephen George

by
Abdisalam M Issa-Salwe

School of Social Science, University of Greenwich

May 1995

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Stephen George, Politics and Policy in the European Community, (Oxford: Oxford
University Press), 1985.

Introduction

When I finished reading this book I felt I had learned more about the economical and
political environment which shaped the European Community than just the EC history.
Although many books have been written about the nature and development of the EC, I
selected this particular one for its interesting analysis and its examination of this
development.

Looking from a different perspective, Stephen George undertakes to re-examine the

development and prospect of the EC from a neofunctionalist approach. In a modest
way, he attempted to provide an analysis which links internal development in the European
Community to developments in the wider international sphere. He concentrates more on
the shortcomings of the Community than its success in its history of attempts to create
common policies. The failure lies, as the author puts it, in the “influence of
neofunctionalist theory on thinking about the process of European integration” (p.v).

Overview

This work is divided into 13 chapters. By looking into the background of the institutions
of the Community, chapter 1 looks into their nature and development. Chapter 2 attempts
to examine European integration in theory and practice. Here, the author, begins to probe
into the conceptual prospect of the policy-making and how it is built.

By giving ‘empirical flesh’, chapters 3 to 6 provide the background against which it

becomes possible to provide an explanation of the pattern of failure and success of six
areas where the Community would be expected to develop common policies. The six
areas are as follows: Energy, Agriculture, Economic and Monetary Union, Regional
Policy, Enlargement, and External Relations.

Chapters 7 to 12 lay the basis for explanation of specific subject matters and their failure
or success. As the original typescript was completed in early 1984, chapter 13 attempts to
bring the story up to date by examining the Community beyond the 1980s.

From Adversaries to Associates

The destructive and perilous competition which European states had followed since the
early years of the twentieth century led them into two wars. Following the lessons learned
from this, it was time for Europe to look for a way from this vicious circle. What these
European nations were looking for was a new order which would be designed to prevent
economic nationalism by fostering free trade and a high level of European and
international interaction. A liberal economic system, ensured by themselves and

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international co-operation, would provide the foundation for a lasting peace. The
European Coal and Steel Community (ECSC), established by six European countries, was
to become the first European economic institution set up in 1951. This worked to
remove customs and duties and quota restrictions in coal, iron ore, scrap, and aimed to
ensure that competition in these committees was fair. The European Atomic Community
(Euratom) and the European Economic Community (EEC) followed in 1957.

With the memory of World War II still vivid , it was almost inconceivable to see European
states, who had been enemies not long ago, associate for the purpose of a common
interest. How did this development take place and what influenced its outcome was the
question which I was asking when I was reading this book. The author attempts to re-
examine this development through the neofunctionalist theory, which was the explanatory
theory which dominated studies of the European Communities in the 1950s and 1960s.

Theoretical Approach

The book examines why it was possible for six European states to reach an agreement on
the creation of a common market and why it subsequently proved difficult for those states
to reach an agreement on further common policies. One way of approaching such an
explanation is through a critical review of what is know as ‘integration theory’.

The most exciting part of the book, in fact, is the theoretical approach of the matter.
Neofunctionalism, was developed by Ernst Haas, and expanded by Leon Linderberg and
others. The basis of the neofunctionalist theory is centred in the approach that all member
states integrate one sector of their economy or policy, and as a result of this, technical
pressures push for the integration of other sectors. Because modern industrial economies
are made up of interdependent parts, it is not possible to isolate one area or sector from
the rest.

For example, the theory maintains that if tariff barriers are removed on trade between the
member states, this will not in itself create a common market unless there is a monetary
union to make it effective. Otherwise, the national governments will find it difficult to
control their individual economies’ performance without recourse to tariffs and other
forms of trade regulation. They will be forced to use changes in the exchange rate more
often, thus increasing monetary instability and making the common market even less of a
reality.

It is difficult to understand the development of the EC without understanding the domestic

politics and economics of its member states. This progress is examined in chapters 3 and
4. As case studies, these chapters probe into the economic development of the EC and
particularly the three largest states, namely West Germany, France and Britain.

The following chapter, 5, looks at the economic structure and institutions of the capitalist
world within which the EC functions.

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It is difficult to view the EC development without taking into account the EC outside an
international context. Chapter 6 probes into the evolution of international politics on a
world scale, with particular emphasis on the relationship with the United States.

Shortfall of the Theory

Both Haas and Linderberg drew their immediate conclusions from the 1965 crisis. This
was when Charles de Gaulle refused to endorse a proposal by the Commission which
envisaged the Common Agricultural Policy (CAP) being financed from customs duties on
goods entering the Community (pp.9-13).

The theory underestimated the strength of nationalism. It assumed that as societies

became richer, so political conflicts would come to be concerned less “with ideals such as
socialism, religion or nationalism, and more with the pursuit of material benefits by
different groups” (pp.28-9). With such an assumption nationalism was defined out of the
neofunctionalism analysis.

Conclusion

The book is clear, well structured and well balanced . It provides the reader with a sound
analysis on how the internal development of the European Community is linked to
developments in the wider international sphere. Influence such as the Europe’s other
western allies, e.i the US, the political pressure from the Communist block, the influence
of the developing countries, which was changing from a peripheral role to a one of
importance in world economy are all area which receive attention and analysis.

The author re-examines all of these developments in the perspective of the

neofunctionalist theory which was the dominant theory of the European Community.

However, in the late 1960s and 1970s, the theory seemed to come increasingly into
conflict with observed developments, some of which were the failure of the EC to reach a
more common policy.

Neofunctionalism is a theory related to modern industrial economy made up of

interdependent states. No thought is given to its possible application to non-industrial
based economies where the interdependence of policies is not an issue. It fails to explain
why there are still powerful national interests which are still preventing complete
unification, for example, the opt outs of ERM, which applied to the UK in 1993. Some
powerful barriers such as nationalism were singled out by the neofunctionalism.

In spite of the weakness of the theory, the author explains that “because the theory was
based on explicit analysis of the nature of the Community, it still provide a fruitful starting
point for investigation” (p.14). Despite the loopholes in the neofunctionalism theory,
which the author acknowledges, it is still a useful approach and presents one way of
understanding the complex interests which the EU typifies.

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Another shortfall of the book is the lack of figures and statistical data to show the trend of
economic development which was taking place in the EC member states. Data is scattered
across the book but not presented in tables, figures or charts.