One Peaceable Europe *

In the history of human’s conflict, we have never seen such a vast destruction as in World War II. Six years of War, from 1939 to 1945, had turned London, Stalingrad, Berlin and many cities in Europe into the piles of ruins. Sixty two millions (62 million) people had died, while millions of refugees were homeless. Ten and a half trillion (10.5) US dollars were spent during the war, destroying seventy percent (70%) of the European industrial infrastructures.

Fellow Toastmaster and Honored Guests,
Europe, more than any part in the world, had been the victim of the periodic wars and large-scale conflicts. Learning from this bitter lesson, leaders of Europe set up a program for ensuring the peace in their own region.

European Coal and Steel Community
The first step was to eliminate the possibility of another war. This could be achieved through pooling the coal and steel resources since these two had provided the industrial muscle for military power. Therefore six countries France, West Germany, Belgium, Netherlands, Luxemburg, and Italy founded the European Coal and Steel Community, abbreviated ECSC, in 1951. ECSC, as declared by the French Foreign Minister, Robert Schuman, would make ‘any war between France and Germany, not merely unthinkable, but materially impossible’.

Although a durable peace was a profound political motive for establishing the new community, it would not have succeeded without an adequate performance in the economic field. The pooling policy of coal and steel had given a promising opportunity for ECSC in the post-war reconstruction projects in Europe. However, there was one big problem for them, nation’s borders stood between steel plants and the coalmines, hindered a rational production.

The Growth of EC, enlarging and deepening.
After removing these barriers and seeing the successful result, they were ready for the second step. They saw a possibility to enhance further their economic cooperation by providing not only the freedom of movement of goods, which formerly limited only to coal and steel, but also to include the freedom of movement of services, capital, and people. To serve these purposes the European Economic Community, EEC, was founded in 1958. This policy proved to attract new members. By 1986, the number of member states was doubled to 12 countries.

As their membership enlarged, another process was happening. Their institution’s structure had evolved into a tighter bloc, resembling a custom union.

What is a custom union? This term comes from the theory of economic integration, developed by a Hungarian economist Béla Balassa. This theory states that as the level of economic integration increases, the trade’s barriers between markets diminish. According to this theory, there are six levels of economic integration: first (1st) Preferential trading area; second (2nd) Free trade area; third (3rd) A Customs union as EEC; fourth (4th) A Common market; fifth (5th) An Economic and monetary union; and Sixth (6th) - the highest level – A complete economic integration.

Using the theory as their guidance, the third step was fulfilled, by signing the Single European Act in 1986. This statute changed EEC from a custom union into a single common market, called the European Community.

EU & Single currency
Finally, the fourth step, transforming into economic and monetary union, came into existence by the Maastricht Treaty, in 1992. It divided the Union policies into three main pillars. The first pillar which concerned the economic policies, led to the creation of single currency, Euro. The other two pillars, one was the Common Foreign and Security policy and the other was Justice and Home affairs, dealt with the policies outside the economic field. They made the Union no longer considered just as an economic union but more as a supranational body consist of 25 member states, which we called today – the European Union

Conclusion
Given Europe's collections of languages and cultures, previous attempts to unite them usually involved military subjugation of unwilling nations, all leading to instability or destruction. European Union had taken a different path, starting from a limited trade body, to a custom union, common market, and finally into an economic and monetary union. They had showed us that nations could cooperate to achieve common goals, and created one peaceable Europe.

*) From speech delivered in Jakarta Toastmaster Club, March 2006