12 - The Center of Europe (1973)

Summary

Chapter 12 shows how the Federal Republic’s booming economy created new challenges and expectations. Currency crises wracked the West, leading to the final breakdown of the Bretton Woods order. Together with other leaders of the newly expanded EC of Nine, Brandt and finance minister Helmut Schmidt instituted a “joint float” of European currencies (excluding Britain, Ireland, and Italy). The Nixon administration tried to slow the EC’s momentum by proposing a “Year of Europe” that would cement U.S. leadership; Bonn was again caught between the United States and France, with both countries fearing that West Germany had become “Finlandized” as a result of its Ostpolitik. Brezhnev’s visit to Bonn, along demands raised by Yugoslavia, Poland, and Romania, showed that West German prosperity had raised expectations of financial generosity. Brandt’s Germany began to play a more visible role in Middle Eastern diplomacy, and in September East and West Germany were finally able to join the United Nations. The EC-9 undertook steps toward greater coordination of foreign policy, particularly at the UN, and Brandt insisted that West Germany was there to act as a European power.