Globalization in Europe

Examples of Globalization in Europe

The examples of globalization in Europe reveal how economic interconnectedness lent itself to social, political, and cultural integration.

Rise of the European Community

A few critical factors contributed to the rise of the European Community after World War Two.

Europe had been devastated by two world wars, and there was a desire to rebuild its damaged economies and provide stability to prevent future conflicts. These two desires played a vital role in the integration and globalization of Europe.

The Marshall Plan Heralds Integration of Western Europe

The US provided ample funds to rebuild Europe in the Marshall Plan. Besides stimulating the rebuilding of Europe's economy, it had two other essential impacts on European globalization.

First, it opened European markets to more US goods. Second, it promoted cooperation among the receiving countries, marking the beginning of proper economic policy coordination. The Organisation of European Economic Cooperation, or OEEC, was created to encourage coordination and cooperation in the administration of Marshall Plan Aid.

The OEEC led directly to the creation of the more globally minded Organisation for Economic Co-operation and Development, or OECD, in 1961, which included the US, Canada, Australia, New Zealand, and Japan, and eventually expanded to have much of Eastern Europe and some countries of Latin America.

Fig 2 - A poster created for the Marshall Plan in 1947.

The European Union

The OEEC was also an essential catalyst for the creation of the European Union.

The European Economic Community, or EEC, was created by the 1957 Treaty of Rome to move beyond cooperation to complete economic integration.

The European Union, or EU, grew out of the EEC by signing the 1992 Maastricht Treaty.

Fig 3 - Map showing EU member countries.

The EU is, by definition, a customs union and single market.

That means there are no trade barriers, such as tariffs between member countries, and the members set external tariffs towards other countries in unison. Essentially, they operate as a single bloc or almost as if they were one unified country for international trade.

Not all, but many of the EU member countries have also adopted the Euro as a common currency.

However, the impact of the EU goes beyond economics. The European Parliament also operates under the EU and promotes social integration and cooperation among member states on common laws and policies.

The Schengen Area

Although closely associated with the EU, the Schengen Area is technically separate. Not all members of the EU are members of the Schengen Agreement, and not all members of the Schengen Agreement are members of the EU, although most are members of both.

The Schengen Agreement was signed in 1985, first between 5 countries but now includes 26 participants. The countries in the Schengen Area have essentially abolished international borders, and people can pass between them without needing to acquire visas or even show a passport.

Fig 4 - The border between Austria and Germany, participating members of the Schengen Agreement allowing free movement across borders.

Effects of Globalization in Europe

There have been many effects of globalization in Europe.

Increased Trade and Access to New Technologies

The primary effect of globalization in Europe has been increased trade, both within Europe and between Europe and the rest of the world.

In addition to more varied foods and goods, European globalization also opened access to new technologies. The telephone, radio, and television contributed to spreading and mixing cultures and ideas in the mid-twentieth century. It allowed people across borders to communicate more efficiently, enjoy similar entertainment, and provide access to news and views that people can hold in common.

In more recent times, the computer, internet, cell phones, and the advent of social media only strengthened these connections. Increased adoption of the automobile and, more importantly, the ubiquitousness of travel by airplane made it even easier for people to feel more connected through the journey.

These technologies not only facilitated further trade and exchange of ideas but also made the barriers between people, such as borders, seem less defined. The creation of a single market in Europe and the free movement of people in the Schengen Area only further contributed to this dynamic.

Peace and Security

One of the underlying goals of reducing trade barriers was to promote peace in Europe. That goal has largely been successful. There has not been a major war on the scale of the World Wars in Europe, and globalization in Europe is at least one factor.

Economic cooperation and collaboration also contributed to diplomatic and political affiliation through the EU and European Parliament and organizations like the United Nations and NATO.

Fig 5 - Former US President Obama with Angela Merkel and other European leaders.

West European Politics in the Age of Globalization

The more prolonged effects of globalization are straightforward to observe in Western Europe. West European Politics in the Age of Globalization have primarily coalesced around the broad acceptance of free trade, parliamentary democracy, liberal social policies, and capitalist economic systems.

While every country has its dynamics and internal politics, it's not an overgeneralization that West European politics in the Age of Globalization largely follow those broad strokes. Since the fall of communism, Eastern European countries have adopted similar socioeconomic and political systems.

Have There Been Negative Effects of Globalization in Europe?

Discussing the positive or negative effects of globalization in Europe can be tricky. Globalization is, in and of itself, a neutral phenomenon. Whether people view its impact as a positive or negative effect of globalization in Europe is primarily a matter of perspective.

However, it has brought unique challenges and dynamics that some see as adverse effects of globalization in Europe.

Culture and Conflict in a Global Europe

While globalization and the advent of cooperation through organizations like the EU have primarily led to relative peace compared to the first half of the 20th century or earlier European history, the era has not been free from conflict.

Even as many economies and societies became more closely integrated, nationalism remained a powerful force. The Troubles in Northern Ireland, wars in the Balkans that led to the breakup of Yugoslavia, and separatist movements in Spain are all examples of the intersection of culture and conflict in a global Europe.

As globalization in Europe has expanded to include Eastern Europe, especially in former close allies of the Soviet Union, Russia has responded with trepidation to the increased alignment of these countries with Western Europe. These concerns are a crucial factor in the Russian invasion of Ukraine in 2022.

Another critical challenge and example of the clash of culture and conflict in Europe is the debate over the integration and role of immigrants in European societies. This has especially been the case as famine, drought, climate change, and wars have driven immigration to Europe from Northern Africa and the Middle East.

While much of Europe has adopted policies of open borders between them and even towards refugees from wars in places like Syria, there has been a backlash in some countries towards them.

Economic Crises Spread Across Borders

While increased economic integration has led mainly to increased trade and shared prosperity, the interdependence of economies can also compound financial problems. Problems in one country can more easily spread to others.

These issues led to some questioning the long-term health of the EU and the Euro as a common currency. Concerns over economic independence were one factor, along with immigration, in the United Kingdom's withdrawal from the EU (commonly referred to as Brexit), leading to financial instability throughout Europe.

Fig 6 - Anti-globalization protests in Athens in 2006.

Anti-Globalization Politics

Political movements opposing globalization in Europe have emerged on the left and right.

Green parties have challenged what they consider to be the in-sustainability of globalization. Other political movements on the left, such as the European Social Forum, have broadly emerged as anti-consumerist and anti-globalist.

Meanwhile, immigration, especially of Muslims, has contributed to the growth of right-wing nationalist parties in some European countries in the early 21st century.