Downing Street Years - Margaret Thatcher [35]
Foreign affairs during the first eighteen months in 1979–1980
BRITAIN AND THE EUROPEAN COMMUNITY
I had made a number of political visits abroad before I became Prime Minister, travelling on various occasions to the Soviet Union, the United States, Germany, Israel and Australia. I enjoyed these tours — as long as there was plenty to read, interesting people to meet and we were doing useful work. But it is certainly a very different experience going abroad as Prime Minister, accompanied everywhere by a highly professional team of advisers, on what is usually a hectic schedule, and meeting heads of government on equal terms.
Familiarizing myself with this new role was not made easier by the fact that within weeks of coming into office I had to face the problem of Britain’s excessive contribution to the European Community (EC) budget — something which required tough bargaining from a difficult position, and the use of diplomatic tactics which many people thought less than diplomatic. Nor was our budget contribution the only source of contention within the EC, even in those early days. It became increasingly clear to me that there were real differences of vision about Europe’s future.
Shortly after I took office the first direct elections to the European Parliament were held. (In those days the Parliament was formally known as ‘the European Assembly’, which perhaps gives a more accurate impression of its limited role.) In the course of the campaign I made a speech in which I emphasized my vision of the Community as a force for freedom:
We believe in a free Europe, not in a standardized Europe. Diminish that variety within the member states, and you impoverish the whole Community …
I went on:
We insist that the institutions of the European Community are managed so that they increase the liberty of the individual throughout the continent. These institutions must not be permitted to dwindle into bureaucracy. Whenever they fail to enlarge freedom the institutions should be criticized and the balance restored.
There has, however, always been a contrary tendency in the Community — interventionist, protectionist, and ultimately federalist. The sharpness of the contrast between these two views of Europe would only become fully apparent as the years went by. But it was never far beneath the surface of events and I was always aware of it.
I was also very much aware of another feature of the EC, which had been apparent from its earliest days, continued to shape its development and diminished Britain’s capacity to influence events — namely, the close relationship between France and Germany. Although this relationship may have seemed to depend on personal rapport — between President Giscard and Chancellor Schmidt or President Mitterrand and Chancellor Kohl — the truth is that it was explicable more in terms of history and perceptions of long-term interest. France has long feared the power of Germany and has hoped that by superior Gallic intelligence power can be directed in ways favourable to French interests. Germany, for her part, knows that although she has contributed considerably more to the EC financially and economically than any other state, she has received an enormous return in the form of international respectability and influence. The Franco-German axis would remain a factor to be reckoned with, and I shall have more to say about it later.
THE STRASBOURG EUROPEAN COUNCIL
My first European Council took place in Strasbourg on 21 and 22 June 1979. France hosted the talks. Strasbourg had been chosen as the venue in acknowledgement of the new importance of the European Parliament (which holds two-thirds of its sessions there) following the elections, in which Conservatives had won 60 of the 78 British seats.
I was confident that Chancellor Schmidt had taken away from our earlier discussions a clear impression of my determination to fight for large reductions in Britain’s net budget contribution. I was hoping he would pass the message on to President Giscard, who was to chair the summit; both men were