After World War II, Europe was in ruins. Millions of people died, economies were ruined. The distrust between countries was very deep. From the ashes of this war and destruction, a new idea of peace and cooperation emerged and this later came to be known as the European Union (EU).
Today, when the India-EU trade and investment agreement has been finalized, it is important to understand how the EU itself was formed, what is its foundation, how will it be helpful to India and why did a big country like Britain decide to exit this organization?
World War II and the Spirit of Never Again
The Second World War, which lasted between 1939 and 1945, was an existential crisis for Europe. Big countries like Germany, France, Britain, Italy, Soviet Union wreaked such havoc on each other that cities, industries, agriculture, everything was almost ruined. Crores of people died. Genocide of Jews and other groups came to light. Heavy economic decline and starvation were also seen. As soon as the war ended, European leaders faced two big questions.
One: Will Europe be thrown into similar wars again? Two- Can such a framework be created in which nations, while maintaining their sovereignty, do not attack each other, but develop together? European integration started with this Never Again thinking.
More than 70 countries were directly affected by the Second World War.
Friendship born of coal and steel
In the year 1951, six countries France, Germany (then West Germany), Italy, Belgium, Netherlands and Luxembourg together formed an organization. The name was decided as European Coal and Steel Community (ECSC). Coal and steel were the basic materials of war, weapons, tanks, machines were all made from them. Shared control over these resources means that no country alone can silently build up a stockpile of weapons. It was an economic agreement, but the real goal was to build political peace and trust. Its success showed that economic cooperation could reduce political tensions.
Deal made between India and EU
European Economic Community and market forces
In the year 1957, these six countries signed the Treaty of Rome and created the European Economic Community (EEC). This step was a real leap towards the European Union. The goal of this organization is to reduce tariffs and trade barriers between countries, creating a common market where goods, services and capital can move easily. Creating coordination in policies like agriculture, trade, transport was also one of its main objectives. Gradually more countries joined. Countries like Britain, Ireland, Denmark (1973), then Greece, Spain, Portugal joined it. Now it is not just an economic club, but has also become a platform to strengthen democracy and stabilize countries that have come out of dictatorship.
The 12 stars in the flag of the European Union are symbols of unity, completeness, harmony and ideals.
How was the European Union consisting of 27 countries formed?
The formal foundation of the European Union was laid by the Maastricht Treaty. The European Union (EU) formally came into existence with the Treaty of Maastricht in 1992. This treaty did three big things. The concept of European citizenship, under which a citizen of any member country gets the freedom to live, work, study anywhere within the EU. Later, under the Economic and Monetary Union, the foundation of the common currency Euro was laid. A system of Central Bank (ECB) and common financial standards was also created. It was decided to cooperate on foreign policy, security and justice. Not just trade, but it extended to diplomacy, security, immigration and judicial cooperation. In the decades that followed, many countries of Central and Eastern Europe joined the EU. These included Poland, Czech Republic, Hungary, Baltic etc. They were earlier under the influence of the Soviet Union.
The larger political message of EU enlargement was that Europe would now be built on democracy, human rights and a market-based economy. Today, after Britain’s exit, there are 27 member countries in the EU. This is a unique structure where there is a common Parliament (European Parliament), a common executive (European Commission), a common Court of Justice of the EU and many common policies and laws. That is, it is neither a completely federal country, nor just a loose organization, but a unique structure between the two.
The United Kingdom (UK) decided to separate from the EU through a referendum in 2016.
Why did Britain separate from the EU?
While the EU was getting stronger on one side, the United Kingdom (UK) decided to separate from the EU through a referendum in 2016. It was called Brexit (Britain + Exit). There were many reasons behind this, the biggest argument of Brexit supporters was that our laws should be made by our elected MPs and not by the bureaucrats and leaders sitting in Brussels (the capital of the EU). Membership of the EU means that in many areas the laws and regulations of the EU are considered superior to those of the British Parliament.
It is important to follow the EU’s common policies on trade, competition, environment, human rights, immigration etc. The Brexit camp said that this has reduced Britain’s ability to take control. His slogan was – Take Back Control i.e. take back control of borders, control of laws and control of money.
Question of immigration and free movement
There is a principle of free movement of people in EU, that is, a citizen of one EU country can easily go, settle and work in another EU country. After many countries of Eastern Europe joined the EU, a large number of people from there started coming to Britain in search of work. This caused two types of reactions in Britain. Many sectors like construction, healthcare, hospitality got cheap and hardworking labour. Two-but at the same time, there was a perception among some local people that jobs were being lost. There is pressure on salaries. The burden on public services schools, hospitals, housing is increasing. The Brexit camp capitalized on this dissatisfaction politically and made immigration a major election issue.
The currency of the European Union is Euro.
Economic logic, contribution and control
Britain was a major financial contributor to the EU budget. Brexit supporters used to say that we send billions of pounds to the EU every week, whereas we could spend this money on our country’s health service, agriculture or infrastructure. Although many economists argued that EU membership gave Britain the benefits of larger markets, investment and financial services, this complex debate reached the general public not in the technical form of net contribution versus net benefit, but in simple sentiments like why are we giving money to Europe.
Identity, history and distinct European thinking
The geographical and historical identity of Britain also remained different. It is an island country that has often considered itself somewhat isolated from Continental Europe. The history of the Empire, Commonwealth countries, trans-Atlantic (US-UK) relations etc. make its foreign policy and identity unique. Many people felt that by staying within the EU, Britain was losing its old superpower independent identity. As a result, a referendum was held in 2016. About 52 percent people voted in favor of leaving the EU and about 48 percent voted in favor of remaining in the EU. Ultimately, on 31 January 2020, Britain officially left the EU, and the EU with 27 member states came into existence.
What lessons and opportunities for India?
Amidst the discussion about India-EU deal, some important clues are given from the history of EU and the story of Brexit. Economic integration brings peace and development, but if people feel that decisions are being taken by distant institutions, or that benefits are not shared equally, then resentment can arise. Both India and the EU are large democracies, where public opinion, media, civil society and electoral politics influence policies. Therefore, any deal will have to be balanced not only from the statistical point of view, but also from the social and political point of view.
The EU has common values but different priorities. Its emphasis is on climate, human rights, data protection, while India’s priority is employment, industrialization and poverty reduction. Any long-term agreement will not be sustainable without balancing these. If in any major integration or agreement the common citizens start feeling like losers rather than winners, then major changes can also come through the democratic path. Therefore transparency, communication and public support is very important.
The European Union, born out of war and destruction, is today a unique experiment of 27 countries. Based on peace, common markets and common laws. This shows us that even countries that have been fighting for centuries can convert mutual distrust into economic partnership and political cooperation. The India-EU deal is part of this larger perspective. It is not just a matter of reducing tariffs or opening the market, but also a question of future partnership between the two major democratic groups. Britain’s separation from the EU reminds that the strength of any international structure ultimately depends on people’s trust, balance and transparency.
Also read: How powerful is the European Commission, what is its role in the India-EU deal?