In pursuit of stability : Yugoslavia and Western European economic integration, 1948–1970

Abstract

This thesis examines the origins and evolution of Yugoslav policy towards Western European integration from the early 1950s until the signing of the first Yugoslav–EEC Trade Agreement in 1970. It examines the emerging role of Western Europe in the Yugoslav foreign and internal politics within the larger context of the Cold War and development of European integration. Increased trade relations with the EEC and the domestic introduction of the 1965 Economic Reform proved vital in persuading Belgrade to become the first socialist country to establish diplomatic and trade relations with the Community in 1968. The thesis argues that these relations became of increasing relevance to the economic and, ultimately, political stability of Yugoslavia. Besides the basic foreign (trade) policy concepts towards the EEC, this study focuses on the perceptions of the Western European integration process among the political elite by addressing the following research questions: How did Yugoslav policymakers react to the Western European integration process? What impact did the success of the EEC have on Yugoslav foreign policy and internal differences among the political elite? In what way did the League of Communists of Yugoslavia rationalize their cooperation with the EEC? What did it mean for the internal coherence of the LCY and for Yugoslavia’s pronounced cooperation with the developing countries? The overarching question is how and why already in the 1960s the EEC became such an important external factor, crucial for the economic development and stability of Yugoslavia. By analysing the complex interaction between the external factors and internal dynamics of Yugoslavia and their impact on Belgrade´s policy towards the EEC, this study provides an explanation of the underlying long-term structural problems of the economy that determined the Yugoslav diplomatic and economic responses to the creation and evolution of the EEC until the breakup of the country.