The European Community of Coal and Steal is created by the Treaty of Paris. Jean Monnet becomes President of the High Authority of the ECSC. He does not believe in the free market system, but rather wants to develop a supranational institution thereby creating a common economic community. Coal and steel was only a start – but they had to start only with it as extending it to more aspects of the market would not have gained acceptance at the time. Two issues to resolve:
- Franco-German relations – common production would make war between them 'not merely unthinkable, but materially impossible'.
- how to ensure continuing adequate supplies of coking coal from the Ruhr for the French steel industry
Why did countries want to join ECSC?
→ Germany – acceptance of the international community, getting rid of IAR
→ France – access to the coal
→ Benelux – too weak to act alone
→ Italy – acceptance of the international community, clear commitment to the capitalist West
→ / Britain – did not want to join because it already considered itself a world power, far economically stronger than the rest of Europe, they had enough supplies of coal more page 97
→ / United States – were not a part of the negotiations but closely followed the procedure through US Embassy committee in Paris
The Treaty establishes a common market for coal and steel, administered by the High Authority, a supranational body. The Treaty also creates an intergovernmental Council of Ministers, an advisory European Parliamentary Assembly and a Court of Justice. The ECSC seeks to remove barriers to the internal market for coal and steel, manage the modernization of production, and prevent the re-emergence of cartels. It is anticipated that the ECSC will lead to further economic integration among its member states.
EDC is signed but not ratified.