Central Europe
Germany, located in the middle of Europe
and dominating Central Europe (the extent of
which can be discussed), was previously
divided into many small states. According to
Countryaah, German
language and culture became widespread early
on in most of present-day Germany, Austria
and Switzerland, as well as gradually in the
areas of Eastern Europe and Russia where
German immigrants settled. German territory
had two centers when German nationalism got
wind in its sails in the last century;
Vienna, the capital of Habsburg
Austria-Hungary, and the country around the
Rhine and Main. The "Common German"
Reichstag was held in Frankfurt am Main in
1848. The Austro-Hungarian Empire housed
large populations with non-German, primarily
Slavic and Hungarian, populations. The dual
monarchy had dominated its part of Central
Europe, Italy and the Balkans in competition
with especially France, Russia and the
Ottoman Empire (Turkey). The balance of
power in Central Europe changed as Prussia
began German unification and shifted its
center of gravity from the Rhine to northern
Germany and Berlin. Prussia took the lead in
the entire German territory and then
followed Austria-Hungary into World War I,
at the end of which the Austro-Hungarian and
Ottoman empires were dissolved into a number
of new states. In the years before World War
II, a new Central European - Greater German
- gathering took place, which after the war
ended in the division of Europe into two
spheres, which was dominated by an outside
power, the United States, and by a power,
the Soviet Union, which considered itself
European, but which also had Asian features.
Germany was divided in two, and its economic
center of gravity again lay on the Rhine,
Main and Neckar as in the time before the
unification of Germany.
Central Europe is now no longer divided,
and Berlin is not only the capital of
Germany, but a Central European center. The
reunited, powerful Germany in the middle of
Europe is hardly a threat like the one that
previously frightened smaller neighbors and
gnawed at those in power in London, Paris
and Moscow. This is partly due to
Franco-German reconciliation and
cooperation; The Coal and Steel Union, the
Treaty of Rome and the Western Union. The
gradually growing EC and the EU have had to
ensure both Europe's peace and economic
recovery and development.
Western Europe
French geopolitical interest is
characterized partly by competition with the
European superpowers, which could threaten
from the south, east and north, and partly
by France's past as a colonial power in
Africa and elsewhere.
England's relations with Europe were
determined for centuries by the pursuit of a
balance on the continent favorable to
British interests and by the distance
dictated by global interests in the British
Empire and later the Commonwealth. Britain's
weakening was already evident at the
beginning of the 1900's and was fulfilled
after World War II through decolonization
and the successive abandonment of the "east
of Suez" presence. NATO and the functioning
of the Alliance until the early 1990's
linked Britain and Europe closely to the
United States, the former colony and current
world power.
Northern Europe
After Denmark had been the only Nordic EU
country for a number of years, Finland and
Sweden became members of the union in 1995.
The votes on EU membership in Finland,
Sweden and Norway (1994) showed that it was
especially the big cities that wanted
membership. Resistance was strongest, and in
the case of Norway crucial, in areas where
larger sections of the population are
dependent on raw material production and
processing. The large cities and their
surroundings are characterized by service
industries and close connection to the
outside world. The difference between urban
cultures and life in small towns or the open
country is so pronounced in the three
largest Nordic countries that important
issues divide the countries regionally. The
capitals and few large cities are oriented
towards foreign countries, especially the
core areas of Europe, while the connection
to the countryside is sometimes weakened. It
is a long way - mentally and in time - from
Oslo and Stockholm to a northern Norwegian
fishing community or a northern Swedish
sawmill town. On the other hand,
environmental and other grassroots movements
have supporters both in town and on land, in
the north and south, and they draw a
different and regionally unifying pattern.
Differences between core areas and the
periphery, which are less pronounced in
Denmark, are seen everywhere in Europe.
European Central Bank
The European Central Bank (ECB) was
founded in 1998 as part of the European
Monetary Union. From January 1, 1999, the
ECB took over the monetary policy of the
members of the monetary union. As is well
known, the euro became legal tender in 12 of
the EU member states on January 1, 2002 and
to date (2015) it is in 19 countries.
The primary goal of the ECB is the price
stability of the euro. Further tasks of the
ECB are to promote the smooth flow of
payment transactions, to manage currency
reserves, the implementation of monetary
policy and foreign exchange transactions,
the supervision of credit institutions and
control of financial market stability as
well as its advisory function. The ECB has
various instruments at its disposal to
achieve its monetary policy objectives. The
most important instrument is the open market
policy. There is also the instrument of
standing facilities, foreign exchange market
interventions and the minimum reserve ratio
to control the money supply and thereby
stabilize the price level. In its monetary
policy, the ECB is independent of political
instructions and influences, both at the
institutional, financial and personal level.
Together with the national central banks,
the ECB forms the system of European Central
Banks (ESCB). The President of the ECB was
the Frenchman Jean-Claude Trichet from 2003
to 2011. Halfway through his tenure, he
succeeded the Dutchman Wilhelm Duisenberg,
who was elected the first President of the
ECB in 1998. The ECB is based in Frankfurt
am Main. The Italian Mario Draghi (born
1947) has been Trichet's successor since
November 1, 2011. History of Italy from
1945 to 1990
Italy's history from 1945 to 1990 was
characterized by industrialization and
prosperity, but also by social problems and
by a political landscape characterized by
great contradictions. Almost a majority of
the population abolished the monarchy and
introduced a republic in a referendum on
June 2, 1946.
Italy was a driving force for
international cooperation, joined NATO in
1949 and played a key role in the founding
of the European Union.
The peace agreement after World War II
The Paris treaty in 1947 was one was a
peace treaty after World War II, in which
Italy had participated on the Axis side
until 1943. On February 10, 1947, Count
Carlo Sforza signed the Paris peace treaty.
The main provisions of the Treaty were
these: Italy renounced to Yugoslavia
virtually all of Venice Giulia with the
cities of Pola and Rovigno, and also the
islands of the Dalmatia coast. The city of
Trieste and the surrounding area (from
Cittanova in the south to Duino in the
north) was separated and was to form an
independent area under the supremacy of the
UN Security Council.
The so-called French line, which the
great powers adopted after prolonged tug of
war, was to form the border between Italy
and Yugoslavia. Minor border adjustments
were made between Italy and France, giving
France the Briga and Tenda areas. Austria
did not get through its claim on the
northern part of South Tyrol. The Dodecanese
were relinquished to Greece. Italy pledged
to renounce all its former colonies in
Africa and had to pay damages to the Soviet
Union, Yugoslavia, Greece, Ethiopia and
Albania.
Economic growth in the post-war period
The first elections after the peace
agreement was signed were held in April
1948. The new coalition government that won
the election consisted of the Communist
Party (PCI), the Socialist Party (PSI) and
the Christian Democratic Party (Democrazia
Cristiana). It concentrated on the country's
economic reconstruction. Unlike fascist
protectionism, the economy was built on
liberalist economic principles. While the
world was about to split into two blocks
that year, the Communist Party of Italy was
banned from the government. At the same
time, a party, Movimento Sociale Italiano (MSI),
was formed, consisting of people who had
previously supported fascism.
The government pursued a Western-oriented
policy, and in 1949 Italy joined NATO.
Thanks to the help of the Marshall Plan,
Italy achieved rapid economic growth. In
1950, an agricultural reform was introduced,
which meant that the state confiscated a
large part of the land from the large
landowners, and then sold it to farmers who
did not own land. There was also rapid
industrialization, and Northern Italy was
competing with Europe's industry. The same
year, the government opened a separate fund
to finance industrialization in southern
Italy. Construction (highways, airports) was
built and loans were offered to those who
wanted to invest in the south, but despite
this, the financial distance between
northern and southern Italy increased.
In the 1953 parliamentary elections, the
government parties did not get a majority,
and after lengthy negotiations a business
ministry was formed, led by Amintore Fanfani.
In December 1955, Italy became a member
of the United Nations, and in the same year
a large-scale ten-year plan was launched
with the aim of raising living standards,
removing unemployment and expanding
agriculture and industry. In March 1957,
Italy, together with the Benelux countries,
France and West Germany, signed the Treaty
of Rome, which created the European Economic
Community, the EEC (later EU), and the
European Atomic Energy Community (EURATOM).
In 1959, several government crises occurred,
but Christian Democrats still retained
government power.
From 1958 to 1963 Italy experienced
exceptionally rapid economic growth thanks
to its participation in the EEC (EU), which
stimulated its exports. But the "boom" was
primarily for Northern Italy, and especially
the industrialized area around the major
cities of Turin and Milan. The export
industry (automotive, primarily Fiat, but
also the textile, business and clothing
industries, as well as the chemical,
metallurgical and mechanical industries) led
the economic progress, while agriculture was
hit by strong competition from other
European countries. There was also a
large-scale migration from southern to
northern Italy, where the industry was in
dire need of cheap labor. Unemployment in
1963 was only 3 percent.
Domestic politics in the 1960s and
1970s
At the domestic political level, a
coalition government was formed in 1962 with
the participation of Christian Democrats,
Social Democrats and Republicans. The
Socialist Party provided parliamentary
support to this government, and Amintore
Fanfani became prime minister. In 1963, Aldo
Moro formed a new unity government. This was
the first time since 1947 that the
socialists were forming government. The
government focused on transferring labor
from agriculture to industry, and on a
stronger industrial expansion of rural areas
in southern Italy, as well as increasing
investment for social purposes.
From the late 1960s, Italy's economic
situation deteriorated. The country was hit
by the international economic downturn.
Unemployment increased, and frequent strike
action made it difficult to maintain
production in private and public
enterprises. The economic crisis complicated
the parliamentary situation. In the early
1970s, Christian Democrats Giulio Andreotti
and Aldo Moro alternately led governments
built on the center-left formula of 1962.
Cooperation between Christian Democrats and
leftist groups was a prerequisite for a
majority in Parliament.
The Communist Party, which was out of
government co-operation, made considerable
progress during these years. This was mainly
due to two factors: first, a growing
proportion of the electorate was
disappointed by the inability of the
center-left to solve the country's economic
and social problems, while at the same time
more and more corruption cases were
revealed. In addition, the Communist Party
had succeeded in gaining democratic
credibility. The party's leader, Enrico
Berlinguer, had for several years assured
that PCI would advocate for a democratic,
pluralistic society, that Italy's membership
in international organizations such as NATO
and the EC (EU) should be maintained, that
private property rights should be protected
and that the party was wholly independent of
Moscow.
As early as the late 1960s, Berlinguer
had put forward a proposal for a so-called
"historical compromise" which would have
resulted in a joint effort by Christian
Democrats and Communists to devise a reform
program to get Italy out of crisis. One
consequence of this would be that the
communists took part in government
responsibility. In the 1976 elections,
communists got 34.4 percent of the vote,
while Christian Democrats retained 38.7
percent. When the Christian Democrats were
still the largest party, President Giulio
Andreotti called for government. Andreotti
declared that he did not want the
Communists. This attitude was likely
influenced by US and other NATO partner
notices.
The Communists stayed in the background
during the government talks, but Andreotti
discussed his draft plan with them, and he
chose to form a purely Christian-democratic
minority government.
Increased crime and extremism in the
1970s
At the same time as the parliamentary
situation was stabilized, the unrest and
crime in Italian society increased. The
Mafia, which had long been terrorizing areas
in Sicily, expanded its operations to other
parts of the country. Furthermore, terror on
political grounds was sharpened. Violent
acts of murder and abduction were
increasingly carried out by right-wing and
left-wing extremist groups.
In the early 1970s, the country was hit
by the international economic crisis and
later by the energy crisis. Production went
down while inflation, government spending,
the government deficit and government debt
increased significantly. Corruption in the
political circles spread and the first
bribery cases became known. The climax was
reached in 1978 when the left group of the
Red Brigades became particularly active. In
connection with a criminal case against 15
of its members for acts of terrorism,
Christian Democratic Party leader Aldo
Moroabducted on March 16 in Rome, and his
five bodyguards were killed. The government
refused to negotiate with the terrorists,
and on May 9 Moro was found killed in a car
in the capital. The crime triggered a
violent outrage in the people and led to
great support for the Christian Democrats in
the election that year.
Party political changes in the 1980s and
1990s
In 1983, socialist Bettino Craxi formed a
coalition government of Christian Democrats,
Socialists, Republicans, Social Democrats
and Liberals. He was the first socialist
prime minister in the history of the
republic. The alliance and the strong
rivalry between the Socialists and Christian
Democrats in the government position led to
an exhausting power struggle that
accentuated the lowest aspects of the
system. First and foremost, this was the
pursuit of support by the clientele system,
especially in southern Italy, in addition to
the use of corruption.
Developments in international politics
towards the end of the 1980s and early
1990s, with the dissolution of the Soviet
Union and the fall of the Berlin Wall, led
to changes in the political system in Italy
as well. Partito Comunista Italiano was
dissolved in 1991, and a new left party,
Partito Democratico della Sinistra, was
created with a party program moving in the
social democratic direction. This party was
later dissolved when yet another party,
Democratici di Sinistra, was created. This
party in turn was also dissolved when
Partito Democratico was founded.
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