Thatcher, Europe and Conservative Party Divisions (AQA A-Level History): Revision Notes

Thatcher, Europe and Conservative Party Divisions

Thatcher as an international figure

After the Falklands War, Margaret Thatcher became a major international figure. Her forceful and confrontational style at European Council meetings made her highly visible on the world stage.

Her international profile was further enhanced through media exposure. When Mikhail Gorbachev invited her to visit the Soviet Union, Thatcher became the Western politician most familiar to Soviet citizens. Her reputation was reinforced again in the Middle East, where she became closely associated with another major conflict.

The First Gulf War

The First Gulf War (1990–91) followed Iraq’s invasion of its smaller neighbour, Kuwait. Iraq’s leader, Saddam Hussein, had previously fought a lengthy and costly war against Iran, and his regime was widely criticised for its poor human rights record. The invasion provoked strong international condemnation and led to the imposition of economic sanctions on Iraq.

At the time of the invasion, Thatcher was in the United States meeting President George H. W. Bush, who had earlier served as Vice President under Ronald Reagan. Thatcher argued strongly in favour of military intervention. Although Bush initially adopted a more cautious stance, he eventually agreed to take action after sustained pressure from Thatcher.

Several countries in the region supported the plan to force Iraqi troops out of Kuwait. The annexation of one sovereign state by another was almost unheard of in recent decades, and there were widespread fears that Iraq gaining control over such a large share of the world’s oil supplies would destabilise the global economy.

The conflict itself was relatively short. A large-scale aerial bombardment was followed by a ground offensive. As the Iraqi army collapsed in a disorganised retreat, coalition commanders recognised that the route to Baghdad was effectively open. However, the decision not to advance on the capital, overthrow Saddam Hussein, or impose political change in Iraq was ultimately a political decision rather than a military one.

Europe as a source of Conservative division

Throughout Thatcher's premiership (and continuing under Major), Britain's relationship with the European Economic Community created profound divisions within Conservative ranks. Three broad positions emerged among Conservative MPs regarding Britain's role in Europe:

1. Full participation in the EEC, engaging with and being shaped by developments in European integration
2. Remaining within the EEC but limiting involvement in what was seen as an undemocratic institution
3. Complete withdrawal from the EEC

These competing visions produced ongoing tension within the party, with disagreements over Europe eventually contributing to Thatcher's removal from office in November 1990.

Europhile ministers and their arguments

Kenneth Clarke and Michael Heseltine represented the pro-European wing of the Conservative Party. They advocated for Britain's active membership of the EEC on both economic and political grounds. The EEC, they argued, served Britain's economic interests through enhanced trade opportunities. Beyond economics, they viewed the organisation as a force for political stability across Europe, helping to prevent future conflicts between member states.

The EEC had emerged from the determination of France and West Germany to build strong economic, social and political links following the Second World War, and Clarke and Heseltine believed this peace-building function remained important.

Thatcher's shifting position on Europe

Thatcher's attitude toward European integration underwent considerable change during her political career. In the early 1970s, she held positive views about Britain's relationship with the EEC. She voted in favour of British membership in 1973 and actively campaigned for Britain to remain within the EEC during the 1975 referendum.

As Prime Minister, Thatcher initially continued this supportive stance. She argued successfully that Britain's financial contribution to the EEC budget was excessive, and secured a reduction in the amount paid. This demonstrated that she was willing to work within European structures to advance British interests.

Thatcher also became increasingly concerned about the growing powers of European institutions. She declared in 1999: "In my lifetime all our problems have come from mainland Europe and all the solutions have come from the English-speaking nations across the world." This retrospective statement revealed how completely her thinking had shifted, as she now contrasted what she saw as the threat from Hitler's Germany with the support received from Roosevelt's USA and the Empire's countries during the Second World War.

The Single European Act (1986)

The EEC had been established through the 1957 Treaty of Rome. In 1986, this founding treaty was revised through the Single European Act, which Thatcher signed despite her growing reservations about European integration. The Act introduced two major changes:

Creating a single market: The Act established a timetable for removing remaining barriers to trade and enabling the free movement of people, goods and services across all EEC member states. This addressed the fact that despite the EEC's existence, various restrictions on trade still operated between member countries.

Qualified majority voting: The Act created a framework that would develop into a common defence policy. More immediately, it changed the decision-making process within the EEC from requiring unanimous agreement to allowing qualified majority voting. As the EEC expanded (from the original six members to 12 by 1986, with further expansion expected), unanimous decision-making had become increasingly difficult and left the organisation inefficient.

The pressure to sign came from within her own government. Geoffrey Howe (her Deputy Prime Minister and Leader of the Commons) and her Chancellor Nigel Lawson jointly persuaded Thatcher to commit Britain to the agreement. This demonstrated that even senior figures aligned with Thatcherite economics believed closer European cooperation served British interests.

The Bruges speech and escalating Euroscepticism

As Thatcher's opposition to further European integration intensified, so too did her willingness to express that opposition publicly. Following her third election victory, she delivered a speech in Bruges in September 1988 that openly challenged the direction of European policy. She expressed discontent with the European project, stating:

This speech represented a direct attack on the federalist vision promoted by Commission President Delors and supported by many within the Conservative Party. Thatcher identified herself firmly with Euroscepticism, arguing that European institutions threatened to undermine the economic reforms she had achieved domestically.

Deepening divisions within the Conservative Party

The Single European Act highlighted fundamental disagreements among Conservatives about what the EEC should be. Some argued that Britain had been persuaded to join what was essentially a free-trade area with minimal political oversight – the Common Market.

However, others within the Conservative Party feared that the collection of trading nations was developing into a state structure. They were particularly concerned about defending British sovereignty and independence. Questions about Britain's membership of the EEC and the competencies of European agencies generated strong emotions within Conservative ranks.

Parliamentary conflict and cabinet tensions

Thatcher's increasingly hostile stance toward European institutions created problems with colleagues who were working to improve Britain's standing within the EEC and increase British influence in European decision-making. Her opposition became particularly apparent during exchanges in the House of Commons.

When Labour leader Neil Kinnock questioned her about the Commission's desire to increase its powers, Thatcher responded forcefully:

This stance aligned with her political philosophy of parliamentary sovereignty and limited bureaucratic power. However, the speech dealt a blow to those Conservative colleagues attempting to enhance Britain's engagement with European structures, including her own Foreign Secretary Geoffrey Howe. The Foreign Office under Howe's leadership had been working to strengthen Britain's position within the EEC.