(^200) › STEP 4. Review the Knowledge You Need to Score High
• In 1967, the EEC merged with other European cooperative bodies to form the European
Community (EC), moving toward a broader integration of public institutions.
• Between 1967 and 1986, the EC expanded to 12 countries, adding Denmark, the
United Kingdom, and the Republic of Ireland (all in 1973), Greece (in 1981), and
Portugal and Spain (both in 1986).
• In 1992, the 12 countries of the EC signed the Maastricht Treaty, changing the name
from the EC to European Union (EU), creating the world’s largest trading bloc and
moving to adopt a common currency (the euro).
• In 1995, Austria, Finland, and Sweden joined the EU.
• Following the breakup of the Soviet Union, the EU underwent a massive expansion,
welcoming countries either newly freed or newly constituted after the breakup of the
Soviet Union. The addition of Cyprus, the Czech Republic, Estonia, Hungary, Latvia,
Lithuania, Malta, Poland, Slovakia, and Slovenia in 2004, and Bulgaria and Romania in
2007, brought the total membership to 27 countries. The addition of Croatia in 2013
raised that total to 28.
These fledgling democracies had more fragile economies than their Western European
counterparts, which strained relations among the members. Freedom of movement within
the European Union meant that Eastern Europeans could freely travel to Western coun-
tries for work. Additionally, when those nations adopted the euro as their currency, their
economies became intertwined with other EU nations. When certain members were unable
to pay or refinance their debts (for example, Greece, Ireland, Spain, and Portugal) around
2009, the stability of the euro was threatened. Though EU members intervened to stabilize
the currency, the conditions they imposed required drastic cuts in government spending
and sparked protests, especially in Greece. The growing importance of the European Union
has also prompted some concerns about a loss of national identity and sovereignty, particu-
larly in Great Britain.
The Disintegration of the Iron Curtain and the Soviet Union
Between 1985 and 1989, the world was stunned as it witnessed the rapid disintegra-
tion of the Soviet Union, the destruction of the Iron Curtain, and the reunification of
Germany. The causes of these dramatic events were rooted in the nature of the Soviet
system, which had for decades put domestic and foreign politics ahead of the needs of
its own economy and of its people. The result was an economic system that could no
longer function. The trigger for its disintegration was the ascension of a new generation
of Soviet leaders.Gorbachev and the “New Man”
While Western Europe was creating the EC and dreaming of economic and political power
that could match those of the superpowers, the big lie of the Soviet economy was coming
home to roost. In 1985, Mikhail Gorbachev succeeded a long line of aging Stalinist leaders.
At the age of 54, Gorbachev represented a younger and more sophisticated generation that
had spent significant time in the West. Gorbachev believed that the Soviet Union’s survival
required a restructuring (perestroika) of both its economy and its society, and an openness
(glasnost) to new ideas. Accordingly, Gorbachev challenged the people of the Soviet Union
and its satellite countries to take on a new level of responsibility. But such an invitation
quickly fanned the fires of autonomy in satellite states.23_Bartolini_Ch23_195-206.indd 200 27/04/18 1:56 PM