14 - New Structures for the West (1974–1975)

Summary

Helmut Schmidt’s Germany helped to found several multilateral institutions in the mid-1970s. Chapter 14 opens with the European Council, a thrice-annual gathering of EC-9 leaders that reasserted the primacy of European nation-states over supranational governance. Schmidt reconciled with Britain, acceding to the Regional Fund in hopes of swaying a British referendum on EC membership. The CSCE summit, held in Helsinki, was a milestone for East-West détente – though Bonn’s relations with the USSR remained strained, even as improvements with Poland were achieved. The Federal Republic fell into recession, and Schmidt fretted about Global South proposals for a New International Economic Order. Bonn’s response was to court major countries individually, highlighting Germany’s interest in positive trade relations while loosening controls on weapons exports and nuclear commerce. Economic anxiety also animated Schmidt’s urgent demands on allies to cooperate in staving off protectionism. Informal coordination with Britain, France, and the United States became commonplace, a more structured grouping, the G-7 (adding Japan, Italy, and soon Canada), reestablished confidence in Western leadership.