CIMUN Chronicle / Article / 1994

The European Economy

IPD Article Image - The European Economy

By Tejas Chakravarthy, RIA Novosti

    Since World War II and the second industrial revolution, European powers and nations have been searching for resources to fuel booming economies and new markets to sell to. European nations have begun to look inward to unite over common interests and protection against external threats. In addition to searching for new potential trade partners, the EU is in debate regarding its economic system. It is in the strong interest of the USSR to work on deepening economic ties with Western Europe, and on improving the EU’s charter towards socialism.

    In the mid-1980s, Western European exports to the Soviet Union were marginal but provided the Soviet Union with industrial equipment, metals and agricultural products in exchange for oil and natural gas. Although oil and gas were the primary Soviet exports to Western Europe, they represent a small percentage of Western Europe's substantial fuel imports. Soviet oil and gas provided only a collective 5 percent of the total energy consumed in Western Europe. 

    However, there were some countries that had a greater dependence on Soviet energy, such as West Germany, with 10 percent of its energy coming from the Soviet Union. The USSR began constructing pipelines, such as the Urengoy-Uzhgorod export pipeline, to increase the importance of Soviet natural gas to Western Europe. The USSR will continue to invest in additional pipelines, and it will be in Europe's interest to make Soviet energy a critical part of their future plans.

    Due to this rapidly changing political and economic scene, Europe has become very fractured; with many nations intent on preserving their socialistic ideals, while others are attempting to adopt more capitalist ideals. The USSR encourages other nations to maintain their historically left-leaning policies and adopt an agenda that narrows the widening gap between classes. As Europe and the USSR share common interests in securing energy certainty and income equality, it is imperative that the two cooperate in order for them to remain relevant in global politics and economy.