Europe and America in the World Energy Crisis

The Neglected Integration Crisis: France, Germany and Lacking European Co‐operation During the 1973/1974 Oil Shock

“…At the same time, energy had traditionally played a prominent role in European integration (Hager, 1976; Lieber, 1976). Two of the three communities at the time, the European Coal and Steel Community (ECSC) and the European Atomic Energy Community (EURATOM), explicitly dealt with matters of energy.…”

“…Member states imported 95% of their oil, two‐thirds of which was from Arab countries. This strong dependence, together with the ‘weaponization’ of oil by Arab countries and their targeted attempt to divide the EEC, led contemporary observers to suggest that member states considered the oil crisis as an external threat requiring a common response (Lieber, 1976, pp. 1, 8).…”

“…As noted above, the EEC was highly dependent on the import of oil. In the course of the crisis, concerns shifted towards high energy prices (Lieber, 1976, p. 29). The massive outflow of ‘petrodollars’ would exacerbate the balance‐of‐payment problems of some member states and further fuel inflation rates.…”

“…Given the reduction in oil supplies and the rise in prices, several member states proceeded to impede the export of oil to other member states. Italy and Belgium, for instance, despite strong criticism from the European Commission, licensed and thus essentially restricted the export of refined oil products (Lieber, 1976, p. 17). Protectionism and the erection of trade barriers stood in stark contrast to the free movement of goods inside the European common market and, as such, violated the EEC Treaty.…”

“…A feeling of uncertainty and awareness of a looming economic recession spread in Western societies. Against this background, policy‐makers and scholars urged the EEC member states to address the crisis jointly to increase Europe's international bargaining power and limit the overall costs of oil (Lieber, 1976; Simonet, 1975). The European Commission made proposals for a common energy policy and called on national governments to show solidarity, particularly with the Netherlands, in the form of an oil‐sharing mechanism.…”