The European Coal and Steel Community: A Foundation for the EU
The European Coal and Steel Community (ECSC)
The ECSC was a sectoral economic integration (coal and steel) within supranational bodies. On May 9, 1950, Robert Schuman proposed putting all Franco-German coal and steel production under a high authority within an organization open to other European countries: The Schuman Declaration. Jean Monnet prepared the document from which Schuman made the declaration. Key points in the document included:
- Creating a common market in coal and steel.
- Ensuring the free movement of goods, persons, and capital related to the coal and steel industries.
- Expressing a political aspiration to develop the African continent, where some member countries held territories.
- Hoping that the benefits of this market would lead to a European Federation.
This statement was presented to all European countries that wished to participate.
Germany responded favorably, as did the Benelux countries and the Italian Republic (forming the original six members). The ECSC was thus established with these six countries, known from that point on as the “group of six.” The United Kingdom remained a partner, maintaining certain relationships under specific conditions without becoming a full member. Negotiations to create the ECSC were lengthy, but the difficulties were overcome, and the Treaty of Paris was signed on March 19, 1951, formally establishing the ECSC. The heads of delegations signed in April, followed by the ministers, and the treaty was ratified by the member countries, entering into force on June 25, 1952.
The treaty established a common market for steel products. After a five-year transition period, this common market was officially opened (eliminating customs barriers between the six countries) for coal, iron ore, and scrap metal. This was implemented in phases, with further market liberalization in 1954. Harmonizing external tariffs for the community’s steel and coal market with other countries proved challenging, as each country had different duties. A compromise was reached by averaging the tariffs, which were then applied uniformly at all borders. This was not fully fixed until 1958. The six member countries exchanged goods freely, but the external tariffs were not fully harmonized until 1958. The ECSC created four supranational institutions:
- Council of Ministers
- High Authority
- Parliamentary Assembly
- Court of Justice
These institutions served as a model for the future creation of the EU. By 1962, steel production in the member countries had increased significantly. The ECSC was considered a success, increasing yields by 70%. The exchange of iron also increased. Therefore, the ECSC streamlined many industries and facilities. Credits were granted to upgrade these industries, and social programs facilitated the rehabilitation of coal workers into other activities as the coal industry declined. This occurred during a period of tension between two major powers: the USA and the USSR. Several significant political developments occurred in the 1950s, including:
- The Korean War
- The Suez Crisis
- The Hungarian Revolution
These events served as a wake-up call to wealthy countries, highlighting the need for Western unity. There was a desire to create a unified European army. Military cooperation acted as a catalyst in this process of unification. The Spaak Report was finalized in 1956. These political developments underlined the need for economic and military unification, especially in light of the Suez Crisis.