Keith Middlemas - Orchestrating Europe (Text Only)

On top of this came German reunification which she vigorously, and probably unwisely, attempted to delay by enlisting Mitterrand’s support during his period of uncertainty of how to react – as if a French president with his personal background had not been aware of its implications. Such tensions had already showed themselves in her speech at Bruges on 20 September 1988 – which became celebrated in retrospect for the tone of its delivery and its reception by the Conservative Eurosceptics rather than its actual content – accepting ‘Britain’s destiny is in Europe as part of the EC’ (but an EC that was imagined as a commonwealth of free independent nations working in harmony together, with a free trade policy covering the whole of Europe.) The text represented a modification of what she had herself accepted in 1985–6 but was consistent with a more general ‘Anglo-Saxon’ view that the EC was essentially an economic vehicle.

Like so many of Margaret Thatcher’s deep-rooted beliefs, these fears rested on a basis of evidence which was inevitably heightened and distorted by her personal perceptions, now ingrained in a long-running administration. 2She encountered other EC heads of government only at summits, and had become isolated, largely because she no longer listened to the complex skeins of Whitehall advice. She was aware of this isolation, aware also of the strength of the EC majority, how her tactics often united them against her, and perhaps of how much less Britain counted with the United States under President Bush than it had done with Ronald Reagan. Yet she seemed unwilling or incapable of acting otherwise than Napoleon in his last campaign of 1814, winning many of the tactical battles but sliding to long, remorseless retreat. She was unwilling above all to examine her lifelong preconception about what ‘Germany’ really was. 3

No such inhibitions restrained the Commission after Delors’s second term began, though he was to be dogged, in the press of several nations, by his assertion that by the year 1998, thanks to the Single Act, 80% of economic, and possibly fiscal and social, legislation would emanate from Brussels. This claim seemed to be heightened by Delors’s address to the Trade Union Conference in September 1988, which Thatcher used to justify her neo-Gaullist defence of national sovereignty – so long at least until the rest should have considered more carefully where all this would lead. 4The Commission, of course, had considered carefully, as the whole edifice built on the 1985 White Paper demonstrated. But it could not control how its proposals to the Council would be interpreted outside, in the press and on television in the twelve member states. British politicians could argue that in implementing the single market programme, the Commission often acted by stealth or resorted to rarely used powers such as Article 90, to force member states to open their telecoms markets to other EC competitors.

Views like this derived from evidence of various kinds: Commission documents such as the internal guide on how to infiltrate the mass of single market legislation through Coreper and the Council of Ministers; or the steadily increasing agenda of items contingent on the internal market. Delors’s campaign to represent the EC, not only at G7 meetings but at all functions dealing with external trade and GATT, appeared to aggrandize the Commission vis-à-vis member states. Indeed the Greek Presidency’s rather presumptuous initiation of direct talks with the Soviet Union in 1988, as if ‘representing the EC’, can be seen as a small state’s rejoinder; one that was reiterated by the Spanish Presidency early in 1989 over trade with Japan. That the Commission did retract, as it had done often in the past, on some of its more contentious positions in order to take a more emollient line, was less often remarked.

For example, concessions made by Delors and Christiane Scrivener, the Commissioner responsible for taxation, on VAT harmonization, which the British in particular had resisted, appeared in any case to accrue to the member state holding the Presidency, or to the European Parliament. In strategic terms, a grand design clearly did exist by 1989, on which the Hannover Summit’s accord allowed the Commission two priceless years to expand. But this might have happened in any case, without the Commission’s driving force, since preoccupation with Euro-sclerosis did not automatically vanish in 1988. It was certainly accelerated by the entry of financial institutions as significant players, and employers’ determination Europe-wide to use the internal market’s four freedoms firmly to re-establish managerial rights and enforce further deregulation of wages, security of employment and conditions of work, to the inevitable detriment and dismay of trades unions.

The Commission, led very strongly by Delors during the period 1988–91, provided a focus for what might otherwise have been diverse activities. Delors’s speeches and the agenda he outlined each January to the Parliament increasingly embodied a particular view of the inexorable unity of economic and social spheres; put simply, that EMU and the Social Charter should run in tandem. The argument that the EC needed a new deal (with undertones of Roosevelt’s New Deal) to safeguard concertation (as long as that had genuine economic content) and to give some hope of a return to full employment, required the Community to examine training and education, technology and structural cohesion, together with redress for unemployment and support for the areas of late 1980s industrial devastation. 5

The embryo of an EC-wide supply side policy contained a built-in presumption that, while post-War neo-Keynesianism may have been misguided, the answers that Keynes had provided were not. 6Whether interpreted as a compromise between the requirements of financial and industrial capital or as an innovative response to the EC’s uncompetitiveness, the Commission set out a strategy in which industry, trade and social policies complemented each other in the search for adjustment in a guided, not a wholly open, market. Some of its manifestations are discussed later: industrial policy and trade, competition, and state aids, monetary union (which depended on member states reforming their public finances according to selected convergence criteria) and the Social Chapter.

The existence of such a massive agenda, unprecedented in the EC’s history, represented a drawing together of many disparate strands of policy-making within different Commission Directorates, by an unusually powerful and comprehensive direction. Given a second term of office as President, for the first time since Hallstein, Delors made clear what he intended in his speech in January 1989 to the European Parliament: ‘History’, he declared, was ‘knocking at the door … it will not be enough to create a large frontier-free market nor … a vast economic area. It is for us, in advance of 1993, to put some flesh on the Community’s bones and to give it a little more soul.’

Naturally enough, each Directorate strove for a greater role in this grand design, 7which in turn contributed to demands for greater competence by the Commission, and also by the Parliament. The appearance, as much as the reality, affected member states’ perceptions, so that ‘Delors II’ became for some a synonym for aggrandizement.

Answers to the question whether Delors did in reality overstate the grand design in the second Presidency, depend on when the estimate is made. At the time of Hannover, the build-up was incomplete. But in 1990–91, the run-up to Maastricht paralleled the final run-in of the single market programme, together with the waves of legislation from the Single Act itself, then going through every member state’s parliament. The popular press and public opinion in member states only woke up to this concatenation in 1991–2, and there was a very widespread reaction which fed through during the process of ratifying Maastricht and EMU (which was itself a follow-up to the SEA).