1. Europe and the U.S.
Ch.13.3

2. Winds of Change in Western Europe
• Move towards economic union (EEC in 1957)
– EEC expanded to include several new contries
including Great Britain, Ireland and Denmark
• Treaty of European Union (EC) 1994 turned
the EC into the principal org. within the
European Union (EU)
– Created the euro- common currency
– 12 of 15 EU nations adopted the euro

3. Uncertainties in France
• Deteriorating economy led to a political shift
– Socialists became the dominant party
• New Socialist leader Mitterrand initiated a
number of measures to aid workers
– Increased minimum wage, 39 hr work week, etc
– Government took over banks, steel, and
space/electronics industries
• Socialist party plans largely failed and
economy still declined

4. From West Germany to Germany
• First Social Democratic chancellor of West
Germany was Willy Brandt
• 1972 Brandt signed a treaty with East
Germany- earned him the Nobel Peace Prize
• Germany reunified in 1990
– Cost of rebuilding Germany caused increased
taxes and eventually high unemployment
– This led to attacks on foreigners because of
competition for jobs

5. Great Britain and Thatcherism
• Two major parties in Great Britain-
Conservatives and the Labour party
• Margaret Thatcher a conservative leader of
1979 pledged to limit social welfare, restrict
union power, and end inflation
• Thatcherism: Thatches economic policy
improved British economy, but old industrial
areas of the north suffered

6. Nixon and Watergate
• Believed that “law and order” and a slowdown in racial
desegregation would appeal to southern whites-
gained republican allegiance
• Nixon began to use illegal methods to gain political
information about his opponents
• A group of men on Nixon’s reelection committee broke
into the Watergate Hotel in DC to install electronic
listening devices
• Nixon lied to the public about his involvement, but
tapes of his conversations in the White House were
discovered that revealed the truth
• Nixon resigned August 9, 1974

7. Carter Administration
• Jimmy Carter became president after Nixon
• Faced high inflation and a lower standard of
living
• 52 Americans were held hostage in by the
Iranian government
– He was unable to gain the hostages’ release

8. Reagan Revolution
• Ronald Reagan cut back on welfare state by
decreasing spending on food stamps, school
lunch programs, and job programs
• Held fast against communist ideology and
some credit him with the quick decline of the
Soviet Union
• Responsible for the largest peacetime military
buildup in U.S. history
– Produced record government budget deficits