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Late 1980s were more eventful in the economic and political setting of Europe. With the weakening of the Cold war, European Community was undergoing transformation and new power and trade relations were emerging. An integration drive was initiated by European Community, including those neutral countries that had a prosperous existence outside the two blocs, aimed at trade and economic stability by forming a common dynamic European economic area. (Tanner 1995, p.2). It was proposed that the creation of a European Economic Area (EEA), with a coalition of European Free Trade Area ( EFTA) and European Community (EC), its members would have access to the single market and would add another 32.5 million consumers to its single market. (Tanner, p.2). However, neutral countries were skeptical with this move, as they considered the association an infringement of their national policy of neutrality in international affairs, and took some time to join as members. In this context, it will be necessary to analyze the case of Austria as a model, to understand whether entry of neutral countries into E.U entail rejection of her neutrality.
With the new European Communitys (ECs) evolution and the wider developments in Europe, during the 1980s, members of EC were in a dilemma between consolidating and deepening its institutional framework and enlarging its membership. A White paper published by EC in 1985 recommended the lifting of all physical, technical, and fiscal barriers left among member countries to create a single market throughout EC. It was envisaged to boost ECs annual gross domestic product by an additional 4-7 percent and make the single market operational by December 31, 1992. (Tanner 1997, p.2). The fall of the Berlin Wall in October 1989 and the rapid termination of the Cold war fundamentally changed the European equation. Developing beyond the single market and adding a clear political perspective to its own destiny became the principal preoccupation of the EC, which culminated in the 1992 Maastricht Treaty. This Treaty envisaged the creation of an Economic and Monetary Union, a Common Foreign and Security Policy of the EC members and finally a union of the common European citizenship. (Tanner, p.6).
During 1989, EFTA comprised two NATO countries, Norway and Iceland, and four European neutrals, which were economically potent and expected to join EC for long-term prosperity from a single market. The European neutrals: Switzerland, Sweden, Finland, and Austria, though economically advanced, and embracing the same Western values, hesitated to join the EC because they thought it not to coexist with their neutrality, and perceived it as an unimportant part of the Western bloc during the Cold War. For maintaining genuine and credible neutrality in times of conflict, as well as in peacetime and treating all nations equally, neutral countries were convinced that their survival and independence were best assured by abstaining from foreign disputes. (Ibid, p.3). As enshrined in international law, at the conference of The Hague in 1907, neutrality legally applies at the time of war. This does not prevent neutral nations from seeking mandatory popular vote or proposing a constitutional amendment in deciding important foreign policy decisions, such as membership in a supranational organization or an international organization of collective security.
Neutrality was enshrined in Austrias constitution at the end of World War II by the allied occupying forces, particularly at Russias request, but with the fall of the Soviet Union, its importance as a buffer zone decreased. (Austria hints at ending neutrality 2001). Under its 1955 state treaty Austria had to promise to abstain from any direct or indirect political or economic union with Germany, and in 1957 West Germany was a member of the European Union, which prevented Austria from becoming a member of EEC then. For getting access to Europes huge market without the political obligations of EEC membership, Austria became a founder member of EFTA, along with Britain, Denmark, Norway, Portugal, Sweden, and Switzerland, in 1960. The political changes behind the iron curtain and the economic and industrial crisis in Austria forced it to apply for EC membership in 1989. The application was approved by a two-thirds majority in a referendum in 1994, and became a member in January 1995, together with Finland and Sweden. Being one of the richer members, Austria qualified to join the new European Economic and Monetary Union in 1999 and swapped its schillings for EURO in 2002.
The entry of Austria as a member of the European Union on January 1st, 1995 had a mixed reaction from its young and old citizens and the government had won the referendum by dispelling concerns of undecided voters that EU memberships would compromise the sovereignty, neutrality, and prosperity of the nation. However, a 1996 opinion poll found that 68 percent of Austrians supported its entry into the EU and suggested: Austria must be a predictable alliance partner for the EU and should make this known to its EU partner. (Lantis & Queen 1998, p.30). Austrias entry into the EU had political ramifications as well, which was evidenced by the diminishing popularity of the two major Austrian parties (SPO and OVP) since October 1994, and the increased volatility in Austrian voting behavior. It is worth noting that in the mid-1990s Austrians were more concerned about economic problems, unemployment, immigration issues, and government austerity plans designed to meet economic criteria for the introduction of a single European currency: The EURO. The governments move to introduce EURO was viewed as a sign of EU dominance over Austrian sovereignty and the anti-EU sentiments indicate deterioration of the traditional power structure and special arrangements between government and key businesses in Austria.
On the contrary, a comparative study by Franz Nauschnigg of the Austrian Society for European Policy, reveals that Association with EU fetched more rewards for Austria. The study found that GDP growth in Austria between 1990 and 2006 was 28 percent higher than its Alpine neighbor Sweden. (Austria: Ungrateful Europeans 2007). It may be seen that the meaning of neutrality in Austria has changed since the end of the East-West conflict. In addition, its association with Partnership for Peace under NATO, UN peacekeeping missions, and joining EUs defense policy are clear signals of its alienation with neutrality.
Bibliography
Austria Hints at Ending Neutrality. (2001). [Online]. BBC News. Web.
Austria: Ungrateful Europeans: Austrians dont Love the EU, but nor will they leave it. (2007). [Online]. Economist.com. Web.
Lantis, Jeffrey S & Queen, Matthew F. (1998). Negotiating Neutrality: Austria and the European Union. Par A. Build-up to the Popular Referendum 1989-1994. (Case 223, Part A).
Tanner, Rolf (2005). At the Heart-But not Part-of Europe?: Switzerland and its Referendum on the European Economic Area. (Case 221, Part B). Institute for the study of Diplomacy.
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