2024 - 2025
EUROPEAN ECOMOMIC HISTORY
EXAM SUMMARY
KOEN HANEGREEFS
,Table of Contents:
Table of Contents: ___________________________________________________________________ 1
Foreword: ___________________________________________________________________________ 6
Setting the Scene ____________________________________________________________________ 7
Setting the scene: ‘European’ ‘Economic’ ‘History’ __________________________________________ 7
Defining ‘European’: ______________________________________________________________________________ 7
Growth of the EU: _________________________________________________________________________________ 7
‘European’ in the context of the European Union: ____________________________________________________ 8
Quid Canada: __________________________________________________________________________________ 8
The Council of Europe: ____________________________________________________________________________ 9
Europe at the time of the Roman Empire: ____________________________________________________________ 9
Economic: ______________________________________________________________________________________ 10
The Oxford Advanced Learner’s Dictionary: ______________________________________________________ 10
Why nations fail - the origins of power, prosperity, and poverty: _____________________________10
Institutions theory: _______________________________________________________________________________ 10
What are institutions?__________________________________________________________________________ 10
Geography theory: _______________________________________________________________________________ 11
Cultural theory: __________________________________________________________________________________ 12
Ignorance theory: ________________________________________________________________________________ 12
The key historical events: _________________________________________________________________________ 12
Spanish Colonisation – Extractive institutions: ___________________________________________________ 12
English Colonisation – Inclusive institutions: _____________________________________________________ 12
Post-Colonial Divergence: ______________________________________________________________________ 13
Economic institutions and innovation: _____________________________________________________________ 13
The eVects we see today: _________________________________________________________________________ 13
Why study history? _______________________________________________________________________13
Quid Panama Canal saga?_________________________________________________________________13
A bit of history: __________________________________________________________________________________ 14
Quid Serbia – Kosovo License plate saga? __________________________________________________14
Key crisis points: _________________________________________________________________________________ 14
2021 Crisis: ___________________________________________________________________________________ 14
2022 Crisis: ___________________________________________________________________________________ 14
Current situation: ________________________________________________________________________________ 14
Classic Antiquity ___________________________________________________________________ 15
Introduction: _____________________________________________________________________________15
Ancient Greece: __________________________________________________________________________16
Greek Economy: _________________________________________________________________________________ 16
Key historical events: _____________________________________________________________________17
Persian wars: ____________________________________________________________________________________ 17
Peloponnesian war: ______________________________________________________________________________ 17
Macedonian conquest: ___________________________________________________________________________ 18
The Macedonian phalanx: ______________________________________________________________________ 18
Alexander the Great: ___________________________________________________________________________ 18
Roman conquest: ________________________________________________________________________________ 19
Corinth: ______________________________________________________________________________________ 19
Carthage: _____________________________________________________________________________________ 19
Ancient Greek – Economics: _______________________________________________________________20
Philosophy: _____________________________________________________________________________________ 20
Socratic dialogue: _____________________________________________________________________________ 20
Plato: ___________________________________________________________________________________________ 20
1
, Dialogues: ____________________________________________________________________________________ 20
Aristotle: ________________________________________________________________________________________ 21
Dialogues: ____________________________________________________________________________________ 21
The Romans: _____________________________________________________________________________22
The Roman Kingdom: 753 BC – 509 BC _____________________________________________________________ 22
The Myth: _____________________________________________________________________________________ 22
The Roman Republic: 509 BC – 27 BC ______________________________________________________________ 23
The Punic Wars: (264 BC – 146 BC) ______________________________________________________________ 23
The Roman Classes: ___________________________________________________________________________ 24
Internal struggles within the Republic: ___________________________________________________________ 25
Rome in the 1st century BC: _____________________________________________________________________ 25
The Roman Empire (principate): 27 BC – 395 AD ____________________________________________________ 27
Augustus: 27 BC – 14 AD _______________________________________________________________________ 27
The “High Empire”: 14 AD – 235 AD ______________________________________________________________ 28
The demise of the Roman Empire: _______________________________________________________________ 30
The Roman Economy: ____________________________________________________________________________ 31
The Republic’s economy: _______________________________________________________________________ 31
The Principate’s economy: _____________________________________________________________________ 32
The Middle Ages ____________________________________________________________________ 34
Defining the Middle Ages: _________________________________________________________________34
Finishing the story of the Roman Empire: __________________________________________________34
The Western Roman Empire: ______________________________________________________________________ 34
The sack of Rome by the Visigoths: ______________________________________________________________ 34
The fall of the Western Roman Empire: 476 AD ___________________________________________________ 34
The Eastern Roman Empire – Byzantine Empire: (306 AD – 1453 AD) __________________________________ 35
Justinian I: 527 AD – 565 AD ____________________________________________________________________ 36
Culture: ______________________________________________________________________________________ 36
Feudalism: _______________________________________________________________________________37
Origins: _________________________________________________________________________________________ 37
The system: _____________________________________________________________________________________ 37
Manorial System: ________________________________________________________________________________ 38
Serfs:_________________________________________________________________________________________ 38
Three classes: (fight, pray, and work) _______________________________________________________________ 38
Social mobility:________________________________________________________________________________ 38
Religion and its eZects on society and economy: ___________________________________________38
The Concordat of Worms: ________________________________________________________________________ 39
The Investiture Controversy: ____________________________________________________________________ 39
The “Ban on Usury”: ______________________________________________________________________________ 39
Business in banking: _____________________________________________________________________________ 39
The rise of the “Urban Economy”: _________________________________________________________40
Cities and towns: ________________________________________________________________________________ 40
Guilds: __________________________________________________________________________________________ 40
Trade networks: __________________________________________________________________________________ 41
The Hanseatic League: _________________________________________________________________________ 41
Crises of the 14th century AD: ______________________________________________________________42
The Great Famine: 1315-1317 AD __________________________________________________________________ 42
Societal eVects: _______________________________________________________________________________ 42
The Black Death: 1347-1351 AD ___________________________________________________________________ 42
Societal eVects: _______________________________________________________________________________ 42
Economic eVects: _____________________________________________________________________________ 42
Other eVects: _________________________________________________________________________________ 42
Wars: ___________________________________________________________________________________________ 43
Stages: _______________________________________________________________________________________ 43
Societal and economic eVects: _________________________________________________________________ 43
2
, Western Schism: ________________________________________________________________________________ 43
History: _______________________________________________________________________________________ 43
Resolution: ___________________________________________________________________________________ 43
Legacy: _______________________________________________________________________________________ 43
Early modern times to the industrial revolution _______________________________________ 44
The fall of the Eastern Roman Empire (Byzantine Empire): 1453 AD __________________________44
The Conquest of Constantinople: _________________________________________________________________ 44
The siege: _____________________________________________________________________________________ 44
Consequences: _______________________________________________________________________________ 44
The Renaissance: 14th – 17th century _______________________________________________________44
Introduction: ____________________________________________________________________________________ 44
“Dark ages”: __________________________________________________________________________________ 44
“Renaissance”: _______________________________________________________________________________ 45
Rise of (absolute) monarchies: 1450 AD – 1700 AD __________________________________________________ 45
France – Absolute Monarchy: ___________________________________________________________________ 46
England – Constitutional Monarchy: _____________________________________________________________ 46
Spain: ________________________________________________________________________________________ 47
Religion: ________________________________________________________________________________________ 49
The Protestant Reformation: ____________________________________________________________________ 49
The Counter Reformation / the Catholic Reformation: _____________________________________________ 49
The Religious Wars: 16th and 17th century ___________________________________________________________ 50
The Eighty Years’ War: 1568 AD – 1648 AD ________________________________________________________ 50
The Thirty Years’ War: 1618 – 1648 _______________________________________________________________ 50
Economic policies of the middle ages: _____________________________________________________51
Mercantilism: est. 15th century ___________________________________________________________________ 51
Key concept: __________________________________________________________________________________ 51
Causes: ______________________________________________________________________________________ 51
In practice: ___________________________________________________________________________________ 51
Free market ideas: _____________________________________________________________________________ 52
DiVerences France – England: _____________________________________________________________________ 52
France: _______________________________________________________________________________________ 52
England: ______________________________________________________________________________________ 52
Age of Exploration and the rise of commerce: ______________________________________________53
The Commercial Revolution: 11th – 18th Century AD _________________________________________________ 53
Age of Exploration and Colonisation:_______________________________________________________________ 54
Consequences: _______________________________________________________________________________ 55
The Dutch East India Company: 1602____________________________________________________________ 55
Industrial Revolutions to the First World War _________________________________________ 57
The Age of Enlightenment and political revolutions: ________________________________________58
The Age of Enlightenment: ________________________________________________________________________ 58
Great thinkers of the Age of Enlightenment: ________________________________________________________ 59
Montesquieu: 1689 – 1755 AD __________________________________________________________________ 59
Adam Smith: 1723 – 1790 AD ___________________________________________________________________ 59
Political Revolutions: _____________________________________________________________________________ 60
The Glorious Revolution: 1688 - 1689 ____________________________________________________________ 60
The American Revolution: 1765 – 1783 AD _______________________________________________________ 60
French Revolution: 1789 – 1799 _________________________________________________________________ 62
Industrial Revolutions: ____________________________________________________________________67
Waves of industrialisation: ________________________________________________________________________ 67
Origins: _______________________________________________________________________________________ 68
Consequences: _______________________________________________________________________________ 68
Ownership: ______________________________________________________________________________________ 68
The Factory system: ______________________________________________________________________________ 68
Centralisation: ________________________________________________________________________________ 68
3
, Jobs: _________________________________________________________________________________________ 68
Society: ______________________________________________________________________________________ 69
Rise of Capital Investments: ______________________________________________________________________ 69
Big Business:__________________________________________________________________________________ 69
Investment Banking: ___________________________________________________________________________ 69
Social impact: ___________________________________________________________________________________ 69
The middle class ideal: _________________________________________________________________________ 69
The First Wave: 1760s – 1840s _____________________________________________________________________ 70
Great Britain: __________________________________________________________________________________ 70
Belgium: ______________________________________________________________________________________ 70
The Second Wave: 1840s – 1870s__________________________________________________________________ 71
Case study – France under Napoleon III: 1850 – 1871 _____________________________________________ 71
Case study – Germany: ________________________________________________________________________ 71
The Third Wave: 1870s – 1900s ____________________________________________________________________ 71
The First International Financial Crisis: 1873________________________________________________________ 72
Causes: ______________________________________________________________________________________ 72
Consequences: _______________________________________________________________________________ 72
The New Imperialistic Period: _____________________________________________________________________ 73
Conclusions: ____________________________________________________________________________________ 73
From “Nation building” to “Sleepwalking into the First World War”: _________________________73
Nationalism in the 19th century: ___________________________________________________________________ 73
Unification of Italy: 1848 – 1871 _________________________________________________________________ 74
Unification of Germany: 1864 – 1871 ____________________________________________________________ 74
World War I – “The Great War”: 1914 – 1918 ________________________________________________________ 74
The Two Coalitions: ____________________________________________________________________________ 74
Frontlines: ____________________________________________________________________________________ 75
Short War Illusion: _____________________________________________________________________________ 75
Key moments of the First World War: ____________________________________________________________ 75
Treaty of Versailles: June 28th, 1919 ______________________________________________________________ 76
The road to a second world war and a new Europe ____________________________________ 77
The Aftermath of the First World War: ______________________________________________________77
Woodrow Wilson: ________________________________________________________________________________ 78
Paris Peace Conference: 1919 ____________________________________________________________________ 79
The Treaty of Versailles: 1919 ___________________________________________________________________ 79
The Road to the Second World War:________________________________________________________80
Allies: ________________________________________________________________________________________ 80
Axis Powers: __________________________________________________________________________________ 80
Unresolved tensions: _____________________________________________________________________________ 81
A Chaotic Interbellum: ___________________________________________________________________________ 81
The German Economy: _________________________________________________________________________ 82
The Key events of the Interbellum: ______________________________________________________________ 84
Key events of the Second World War: ______________________________________________________________ 85
The Aftermath of the Second World War and the road to a new Europe: ______________________87
The horrors of the Second World War:______________________________________________________________ 87
Europe “Quo Vadis?”: ____________________________________________________________________________ 87
1945-1946 Chaos and instability in Europe:_________________________________________________________ 88
From World War to Cold War: _____________________________________________________________________ 88
The Start: 1945 – 1950 _________________________________________________________________________ 88
European Coal and Steel Community (ECSC): ____________________________________________________ 89
Reindustrialisation of Germany and European integration: 1952 – 1957 _____________________________ 90
Quid Germany: ________________________________________________________________________________ 90
European Economic Community (EEC): 1957 ____________________________________________________ 91
European Free Trade Associations (EFTA): 1960 __________________________________________________ 91
European Union (EU): _____________________________________________________________________92
The key events of EU history: ______________________________________________________________________ 92
The Member States: ______________________________________________________________________________ 93
4
,The Balkans and their role in European Economic History: ____________________________ 94
Antiquity to the creation of Balkan nation states: ___________________________________________94
What are the Balkans: ____________________________________________________________________________ 94
Before the Roman Empire: ________________________________________________________________________ 95
Bronze age: 3000 BC - 1000 BC _________________________________________________________________ 95
Iron age: 1200 BC – 550 BC _____________________________________________________________________ 95
Rome: __________________________________________________________________________________________ 96
Split of the Roman Empire: 395 AD ________________________________________________________________ 97
Barbaric incursions: ______________________________________________________________________________ 97
Byzantium and the Byzantine Empire: 395 AD – 1453 AD _____________________________________________ 98
Creation of the medieval states: ___________________________________________________________________ 98
Bulgaria: ______________________________________________________________________________________ 98
Serbia: _______________________________________________________________________________________ 99
Hungary, Transylvania, Wallachia, and Moldavia: _________________________________________________ 99
Croatia, Dalmatia, Bosnia, and Albania: ________________________________________________________ 100
Highlights from medieval states: _______________________________________________________________ 101
Evolving landscape illustrated:_________________________________________________________________ 102
The Ottoman Empire: ___________________________________________________________________________ 103
The Ottoman Conquest:_______________________________________________________________________ 103
The Ottoman System: _________________________________________________________________________ 104
18th century: ____________________________________________________________________________________ 109
Late 17th century and Early 18th century: ________________________________________________________ 109
The Balkans Under the Habsburgs: _______________________________________________________________ 110
A decentralised Imperial Model: _______________________________________________________________ 110
Diet of Ausburg and its legacy: _________________________________________________________________ 110
Late 18th century: _____________________________________________________________________________ 111
Habsburg VS Russian economic influence: _____________________________________________________ 112
Pre-industrial Balkans: __________________________________________________________________________ 112
Economics: 16th century – 19th century _________________________________________________________ 112
19 century: ____________________________________________________________________________________ 114
th
The rise of the nation states: ___________________________________________________________________ 114
An overview: ____________________________________________________________________________________ 116
Industrial revolutions, World Wars, and more: 20th century _______________________________ 116
Balkan Wars: 1912-1913 _________________________________________________________________________ 116
The War and its alliances: _____________________________________________________________________ 116
The aftermath: _______________________________________________________________________________ 117
Setup for the First World War: 1914 _______________________________________________________________ 117
Otto Von Bismarck: ___________________________________________________________________________ 117
The eve of the Great War: ______________________________________________________________________ 118
Peace settlements and the national question: ___________________________________________________ 118
Interbellum: ____________________________________________________________________________________ 119
Post war economic and social challenges: ______________________________________________________ 119
The Great Depression: 1929 – 1930 _____________________________________________________________ 120
Post-Great depression: _______________________________________________________________________ 121
The Second World War and the fate of the Balkans: ________________________________________________ 122
Molotov-Ribbentrop Pact: August 1939 _________________________________________________________ 122
The Second World War: _______________________________________________________________________ 123
Inter-Allied negotiations on the Balkans: ________________________________________________________ 124
Post Second World War: _________________________________________________________________________ 125
Establishment of communist regimes: _________________________________________________________ 125
Economic systems: ___________________________________________________________________________ 126
Societal changes under communist rule: _______________________________________________________ 128
COMECON: __________________________________________________________________________________ 129
The collapse of the Soviet Union/USSR: ___________________________________________________________ 130
Dismantling the USSR: ________________________________________________________________________ 130
Hungary:_____________________________________________________________________________________ 131
Heading into the 21st century: ____________________________________________________________________ 131
Post communist transition and European integration: ____________________________________________ 131
5
, Concluding the 20th century: ___________________________________________________________________ 132
Final word: _____________________________________________________________________________ 133
Foreword:
Dear fellow Student,
A few words about this summary:
Learning history based of slides is not really a good approach so I decided to make a sort of syllabus for
this course. However, the document you have before you does not include everything that was in the
slides that were distributed by both Professors. If you want a complete version, I suggest you take a look
at the other documents I have published on Stuvia. You will be able to find every module individually
and also a discount bundle where I oJer the entirety at a very low price.
What I cover in this document:
- Module 1: Introduction
o New York Times article from January 8th, 2025
o Why Nations Fail, The Origins of Power and Prosperity pages 19-56
o Fact check Canada
o PowerPoint (everything)
- Module 2: Classic Antiquity
o Reading material of the Roman Economy
o PowerPoint (everything)
- Module 3: Middle Ages (everything)
- Module 4: From the Early Modern Times to the Industrial Revolution (everything)
- Module 5: Revolutions to WWI (everything)
- Module 7: WWI to WWII and the Road to a New Europe (up to slide 45)
- Module 8: The Balkans (The parts that were covered in the class and with an exclamation mark)
Note that I call the Balkans module 8 while the Professor calls it module 7.
Why no Module 6? – Module 6 was about the exam and had no study material in it.
Why cover Module 7 only up to slide 45? – As the Professor announced for this exam (24-25) you do not
need to study anything after the 45th slide.
Why cover only what you’ve seen in class of Module 8? - As the Professor said during class, he did not
have the time to cover everything so certain things would not be part of what is to study for the exam.
For those who don’t know me, I studied law before this and have had my fair share of history courses to
study so I can speak out of experience. History is not everyone’s favourite course, and it will require
some or even significant eJort to pass this course. It is important to know the dates and understand the
dynamic situation and its context that makes up European Economic History, and that’s exactly what I
tried to provide within this summary. Know that this is probably more than you’re going to need to know
so I suggest you start by understanding the broader movements before starting to learn the facts.
I hope this summary meets your expectations; I have tried to uphold the highest standard possible.
If you would have any questions or remarks for me:
All there is left for me to do is wish you the best of luck with studying and your exam.
~ Koen Hanegreefs
6
,Setting the Scene
Dates:
AD – “Anno Domini” – Year of the Lord/Birthyear of Jesus Christ
BC – “Before Christ” – Dates before the birthyear of Jesus Christ
CE – “Common Era”
BCE – “Before the Common Era”
Aim of the course:
- Being able to understand and describe the main events in the history of Europe and the European
Union (EU)
- Being able to understand and describe the main events in the European Integration
- Being able to analyse the main historical event in their role in creating or destroying the wealth of
nations
- Being able to reflect and explain the determinants of economic development of countries
- Being able to analyse mechanisms that have influenced the transformation of the European
economy
- Being able to evaluate and develop an argumentation on the formation of the European Union and
its current architecture while drawing on important past events, trends, and economic conditions.
Setting the scene: ‘European’ ‘Economic’ ‘History’
Covered in the course is ‘capita selecta’ / selected chapters (or events in our case) for bachelor year 1
of Business Economics:
Defining ‘European’:
When asked the question, what is European you’ll often get very diJerent answers. Is ‘European’ defined
geologically? Is ‘European’ defined culturally? Is ‘European’ a way of life? Is ‘European’ the European
Union? Especially in today’s day and age with arising conflicts, the current economic recession, shifting
political landscapes and an ongoing immigration crisis, opinions are very diJerentiated on whether
people want to be identified as ‘European’.
(examples: Brexit, Ukraine to join the EU?, Georgia…)
A famous quote from a famous American diplomat and secretary of state:
“Who do I call if I want to speak to Europe?” – Henry Kissinger1
Pointing out that the EU lacked/lacks a single diplomatic authority to represent itself. It is still up to the
member states individually to make decisions.
Growth of the EU:
1957: Belgium, The Netherlands, Luxembourg, France, Italy, and Germany
1973: Denmark, Ireland, and the United Kingdom
1981: Greece
1986: Portugal and Spain
1995: Austria, Finland, and Sweden
1
Note that Kissinger never definitively claimed the quote.
7
,2004: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and
Slovenia
2007: Bulgaria and Romania
2013: Croatia
2020: The United Kingdom left
‘European’ in the context of the European Union:
Art. 49 TEU:
Any European State which respects the values referred to in Article 2 and is committed to promoting
them may apply to become a member of the Union. The European Parliament and national Parliaments
shall be notified of this application. The applicant State shall address its application to the Council,
which shall act unanimously after consulting the Commission and after receiving the consent of the
European Parliament, which shall act by a majority of its component members. The conditions of
eligibility agreed upon by the European Council shall be taken into account.
The conditions of admission and the adjustments to the Treaties on which the Union is founded, which
such admission entails, shall be the subject of an agreement between the Member States and the
applicant State. This agreement shall be submitted for ratification by all the contracting States in
accordance with their respective constitutional requirements.
Art. 2 TEU:
The Union is founded on the values of respect for human dignity, freedom, democracy, equality, the rule
of law and respect for human rights, including the rights of persons belonging to minorities.
These values are common to the Member States in a society in which pluralism, non-discrimination,
tolerance, justice, solidarity and equality between women and men prevail.
1987: Morocco applied to join the EU but was rejected by the Council on the grounds that it was not
considered a ‘European State’. The decision was a political one rather than a legally grounded one. In
Briefing No 23: Legal questions of enlargement, it is explained that there is no unequivocal interpretation
of the criterion ‘European State’, “It can be read equally well in geographical, cultural or political terms.”2
or as a combination. As neither of these ways to interpret the criterion has been imposed legally, it
remains a political decision.
Armenia, Georgia, Turkey, and Ukraine satisfy the requirements for application.
Quid Canada:
Ever since the Trump administration took oJice for a second time relations with its northern neighbour
started straining. Trump’s serious claims of his desire to make Canada the US’s 51st state and more
recently the tariJs he imposed has made Canada start looking for new closer allies and trading partners.
Now, there is clear interest and willingness from both Canada and the EU to intensify trade relations and
become closer allies as Trump keeps being unpredictable and increasingly aggressive in his self-
inflicted trade war.
Can Canada be considered a ‘European State’? Opinions diJer, some argue that because Canada has
a European-style public healthcare system, a French and English-speaking culture, and because of its
participation in NATO, it could join the EU. Others argue that because of Canada not being in continental
Europe, it not being a member of the Council of Europe, it not having ancient connections to the cultural
development of Europe, it would not qualify as a ‘European State’, not culturally, politically, or
geographically.
2
https://www.europarl.europa.eu/enlargement/briefings/23a2_en.htm
8
, The Council of Europe:
The council of Europe is an international organisation (≠ EU) that aims to uphold the human rights,
democracy, and the rule of law in Europe. It is the leading human rights organisation on the European
continent, was founded in 1949 and now counts 46 member states that all pledge to uphold the values
and rules written down in the European Convention of Human Rights.
One of the organs of the Council of Europe is the European Court of Human rights (ECHR) (located in
Strasbourg, France and is not to be confused with the Court of Justice of the European Union.
The argument was made that almost all European States are member states of the Council of Europe.
The requirements to become a member state of the Council of Europe are the following:
Art. 4 Statute of the CoE:
Any European State which is deemed to be able and willing to fulfil the provisions of
Article 3 may be invited to become a member of the Council of Europe by the Committee of
Ministers. Any State so invited shall become a member on the deposit on its behalf with the
Secretary General of an instrument of accession to the present Statute.
Art. 3 Statute of the CoE:
Every member of the Council of Europe must accept the principles of the rule of law and of
the enjoyment by all persons within its jurisdiction of human rights and fundamental
freedoms, and collaborate sincerely and eJectively in the realisation of the aim of the
Council as specified in Chapter I.
Europe at the time of the Roman Empire:
As you can see, Europe at the time of the Roman Empire consisted of South and Western Europe, parts
of Sout-West Asia and Parts of North Africa. Are all these places to be considered ‘Europe’?
9
EUROPEAN ECOMOMIC HISTORY
EXAM SUMMARY
KOEN HANEGREEFS
,Table of Contents:
Table of Contents: ___________________________________________________________________ 1
Foreword: ___________________________________________________________________________ 6
Setting the Scene ____________________________________________________________________ 7
Setting the scene: ‘European’ ‘Economic’ ‘History’ __________________________________________ 7
Defining ‘European’: ______________________________________________________________________________ 7
Growth of the EU: _________________________________________________________________________________ 7
‘European’ in the context of the European Union: ____________________________________________________ 8
Quid Canada: __________________________________________________________________________________ 8
The Council of Europe: ____________________________________________________________________________ 9
Europe at the time of the Roman Empire: ____________________________________________________________ 9
Economic: ______________________________________________________________________________________ 10
The Oxford Advanced Learner’s Dictionary: ______________________________________________________ 10
Why nations fail - the origins of power, prosperity, and poverty: _____________________________10
Institutions theory: _______________________________________________________________________________ 10
What are institutions?__________________________________________________________________________ 10
Geography theory: _______________________________________________________________________________ 11
Cultural theory: __________________________________________________________________________________ 12
Ignorance theory: ________________________________________________________________________________ 12
The key historical events: _________________________________________________________________________ 12
Spanish Colonisation – Extractive institutions: ___________________________________________________ 12
English Colonisation – Inclusive institutions: _____________________________________________________ 12
Post-Colonial Divergence: ______________________________________________________________________ 13
Economic institutions and innovation: _____________________________________________________________ 13
The eVects we see today: _________________________________________________________________________ 13
Why study history? _______________________________________________________________________13
Quid Panama Canal saga?_________________________________________________________________13
A bit of history: __________________________________________________________________________________ 14
Quid Serbia – Kosovo License plate saga? __________________________________________________14
Key crisis points: _________________________________________________________________________________ 14
2021 Crisis: ___________________________________________________________________________________ 14
2022 Crisis: ___________________________________________________________________________________ 14
Current situation: ________________________________________________________________________________ 14
Classic Antiquity ___________________________________________________________________ 15
Introduction: _____________________________________________________________________________15
Ancient Greece: __________________________________________________________________________16
Greek Economy: _________________________________________________________________________________ 16
Key historical events: _____________________________________________________________________17
Persian wars: ____________________________________________________________________________________ 17
Peloponnesian war: ______________________________________________________________________________ 17
Macedonian conquest: ___________________________________________________________________________ 18
The Macedonian phalanx: ______________________________________________________________________ 18
Alexander the Great: ___________________________________________________________________________ 18
Roman conquest: ________________________________________________________________________________ 19
Corinth: ______________________________________________________________________________________ 19
Carthage: _____________________________________________________________________________________ 19
Ancient Greek – Economics: _______________________________________________________________20
Philosophy: _____________________________________________________________________________________ 20
Socratic dialogue: _____________________________________________________________________________ 20
Plato: ___________________________________________________________________________________________ 20
1
, Dialogues: ____________________________________________________________________________________ 20
Aristotle: ________________________________________________________________________________________ 21
Dialogues: ____________________________________________________________________________________ 21
The Romans: _____________________________________________________________________________22
The Roman Kingdom: 753 BC – 509 BC _____________________________________________________________ 22
The Myth: _____________________________________________________________________________________ 22
The Roman Republic: 509 BC – 27 BC ______________________________________________________________ 23
The Punic Wars: (264 BC – 146 BC) ______________________________________________________________ 23
The Roman Classes: ___________________________________________________________________________ 24
Internal struggles within the Republic: ___________________________________________________________ 25
Rome in the 1st century BC: _____________________________________________________________________ 25
The Roman Empire (principate): 27 BC – 395 AD ____________________________________________________ 27
Augustus: 27 BC – 14 AD _______________________________________________________________________ 27
The “High Empire”: 14 AD – 235 AD ______________________________________________________________ 28
The demise of the Roman Empire: _______________________________________________________________ 30
The Roman Economy: ____________________________________________________________________________ 31
The Republic’s economy: _______________________________________________________________________ 31
The Principate’s economy: _____________________________________________________________________ 32
The Middle Ages ____________________________________________________________________ 34
Defining the Middle Ages: _________________________________________________________________34
Finishing the story of the Roman Empire: __________________________________________________34
The Western Roman Empire: ______________________________________________________________________ 34
The sack of Rome by the Visigoths: ______________________________________________________________ 34
The fall of the Western Roman Empire: 476 AD ___________________________________________________ 34
The Eastern Roman Empire – Byzantine Empire: (306 AD – 1453 AD) __________________________________ 35
Justinian I: 527 AD – 565 AD ____________________________________________________________________ 36
Culture: ______________________________________________________________________________________ 36
Feudalism: _______________________________________________________________________________37
Origins: _________________________________________________________________________________________ 37
The system: _____________________________________________________________________________________ 37
Manorial System: ________________________________________________________________________________ 38
Serfs:_________________________________________________________________________________________ 38
Three classes: (fight, pray, and work) _______________________________________________________________ 38
Social mobility:________________________________________________________________________________ 38
Religion and its eZects on society and economy: ___________________________________________38
The Concordat of Worms: ________________________________________________________________________ 39
The Investiture Controversy: ____________________________________________________________________ 39
The “Ban on Usury”: ______________________________________________________________________________ 39
Business in banking: _____________________________________________________________________________ 39
The rise of the “Urban Economy”: _________________________________________________________40
Cities and towns: ________________________________________________________________________________ 40
Guilds: __________________________________________________________________________________________ 40
Trade networks: __________________________________________________________________________________ 41
The Hanseatic League: _________________________________________________________________________ 41
Crises of the 14th century AD: ______________________________________________________________42
The Great Famine: 1315-1317 AD __________________________________________________________________ 42
Societal eVects: _______________________________________________________________________________ 42
The Black Death: 1347-1351 AD ___________________________________________________________________ 42
Societal eVects: _______________________________________________________________________________ 42
Economic eVects: _____________________________________________________________________________ 42
Other eVects: _________________________________________________________________________________ 42
Wars: ___________________________________________________________________________________________ 43
Stages: _______________________________________________________________________________________ 43
Societal and economic eVects: _________________________________________________________________ 43
2
, Western Schism: ________________________________________________________________________________ 43
History: _______________________________________________________________________________________ 43
Resolution: ___________________________________________________________________________________ 43
Legacy: _______________________________________________________________________________________ 43
Early modern times to the industrial revolution _______________________________________ 44
The fall of the Eastern Roman Empire (Byzantine Empire): 1453 AD __________________________44
The Conquest of Constantinople: _________________________________________________________________ 44
The siege: _____________________________________________________________________________________ 44
Consequences: _______________________________________________________________________________ 44
The Renaissance: 14th – 17th century _______________________________________________________44
Introduction: ____________________________________________________________________________________ 44
“Dark ages”: __________________________________________________________________________________ 44
“Renaissance”: _______________________________________________________________________________ 45
Rise of (absolute) monarchies: 1450 AD – 1700 AD __________________________________________________ 45
France – Absolute Monarchy: ___________________________________________________________________ 46
England – Constitutional Monarchy: _____________________________________________________________ 46
Spain: ________________________________________________________________________________________ 47
Religion: ________________________________________________________________________________________ 49
The Protestant Reformation: ____________________________________________________________________ 49
The Counter Reformation / the Catholic Reformation: _____________________________________________ 49
The Religious Wars: 16th and 17th century ___________________________________________________________ 50
The Eighty Years’ War: 1568 AD – 1648 AD ________________________________________________________ 50
The Thirty Years’ War: 1618 – 1648 _______________________________________________________________ 50
Economic policies of the middle ages: _____________________________________________________51
Mercantilism: est. 15th century ___________________________________________________________________ 51
Key concept: __________________________________________________________________________________ 51
Causes: ______________________________________________________________________________________ 51
In practice: ___________________________________________________________________________________ 51
Free market ideas: _____________________________________________________________________________ 52
DiVerences France – England: _____________________________________________________________________ 52
France: _______________________________________________________________________________________ 52
England: ______________________________________________________________________________________ 52
Age of Exploration and the rise of commerce: ______________________________________________53
The Commercial Revolution: 11th – 18th Century AD _________________________________________________ 53
Age of Exploration and Colonisation:_______________________________________________________________ 54
Consequences: _______________________________________________________________________________ 55
The Dutch East India Company: 1602____________________________________________________________ 55
Industrial Revolutions to the First World War _________________________________________ 57
The Age of Enlightenment and political revolutions: ________________________________________58
The Age of Enlightenment: ________________________________________________________________________ 58
Great thinkers of the Age of Enlightenment: ________________________________________________________ 59
Montesquieu: 1689 – 1755 AD __________________________________________________________________ 59
Adam Smith: 1723 – 1790 AD ___________________________________________________________________ 59
Political Revolutions: _____________________________________________________________________________ 60
The Glorious Revolution: 1688 - 1689 ____________________________________________________________ 60
The American Revolution: 1765 – 1783 AD _______________________________________________________ 60
French Revolution: 1789 – 1799 _________________________________________________________________ 62
Industrial Revolutions: ____________________________________________________________________67
Waves of industrialisation: ________________________________________________________________________ 67
Origins: _______________________________________________________________________________________ 68
Consequences: _______________________________________________________________________________ 68
Ownership: ______________________________________________________________________________________ 68
The Factory system: ______________________________________________________________________________ 68
Centralisation: ________________________________________________________________________________ 68
3
, Jobs: _________________________________________________________________________________________ 68
Society: ______________________________________________________________________________________ 69
Rise of Capital Investments: ______________________________________________________________________ 69
Big Business:__________________________________________________________________________________ 69
Investment Banking: ___________________________________________________________________________ 69
Social impact: ___________________________________________________________________________________ 69
The middle class ideal: _________________________________________________________________________ 69
The First Wave: 1760s – 1840s _____________________________________________________________________ 70
Great Britain: __________________________________________________________________________________ 70
Belgium: ______________________________________________________________________________________ 70
The Second Wave: 1840s – 1870s__________________________________________________________________ 71
Case study – France under Napoleon III: 1850 – 1871 _____________________________________________ 71
Case study – Germany: ________________________________________________________________________ 71
The Third Wave: 1870s – 1900s ____________________________________________________________________ 71
The First International Financial Crisis: 1873________________________________________________________ 72
Causes: ______________________________________________________________________________________ 72
Consequences: _______________________________________________________________________________ 72
The New Imperialistic Period: _____________________________________________________________________ 73
Conclusions: ____________________________________________________________________________________ 73
From “Nation building” to “Sleepwalking into the First World War”: _________________________73
Nationalism in the 19th century: ___________________________________________________________________ 73
Unification of Italy: 1848 – 1871 _________________________________________________________________ 74
Unification of Germany: 1864 – 1871 ____________________________________________________________ 74
World War I – “The Great War”: 1914 – 1918 ________________________________________________________ 74
The Two Coalitions: ____________________________________________________________________________ 74
Frontlines: ____________________________________________________________________________________ 75
Short War Illusion: _____________________________________________________________________________ 75
Key moments of the First World War: ____________________________________________________________ 75
Treaty of Versailles: June 28th, 1919 ______________________________________________________________ 76
The road to a second world war and a new Europe ____________________________________ 77
The Aftermath of the First World War: ______________________________________________________77
Woodrow Wilson: ________________________________________________________________________________ 78
Paris Peace Conference: 1919 ____________________________________________________________________ 79
The Treaty of Versailles: 1919 ___________________________________________________________________ 79
The Road to the Second World War:________________________________________________________80
Allies: ________________________________________________________________________________________ 80
Axis Powers: __________________________________________________________________________________ 80
Unresolved tensions: _____________________________________________________________________________ 81
A Chaotic Interbellum: ___________________________________________________________________________ 81
The German Economy: _________________________________________________________________________ 82
The Key events of the Interbellum: ______________________________________________________________ 84
Key events of the Second World War: ______________________________________________________________ 85
The Aftermath of the Second World War and the road to a new Europe: ______________________87
The horrors of the Second World War:______________________________________________________________ 87
Europe “Quo Vadis?”: ____________________________________________________________________________ 87
1945-1946 Chaos and instability in Europe:_________________________________________________________ 88
From World War to Cold War: _____________________________________________________________________ 88
The Start: 1945 – 1950 _________________________________________________________________________ 88
European Coal and Steel Community (ECSC): ____________________________________________________ 89
Reindustrialisation of Germany and European integration: 1952 – 1957 _____________________________ 90
Quid Germany: ________________________________________________________________________________ 90
European Economic Community (EEC): 1957 ____________________________________________________ 91
European Free Trade Associations (EFTA): 1960 __________________________________________________ 91
European Union (EU): _____________________________________________________________________92
The key events of EU history: ______________________________________________________________________ 92
The Member States: ______________________________________________________________________________ 93
4
,The Balkans and their role in European Economic History: ____________________________ 94
Antiquity to the creation of Balkan nation states: ___________________________________________94
What are the Balkans: ____________________________________________________________________________ 94
Before the Roman Empire: ________________________________________________________________________ 95
Bronze age: 3000 BC - 1000 BC _________________________________________________________________ 95
Iron age: 1200 BC – 550 BC _____________________________________________________________________ 95
Rome: __________________________________________________________________________________________ 96
Split of the Roman Empire: 395 AD ________________________________________________________________ 97
Barbaric incursions: ______________________________________________________________________________ 97
Byzantium and the Byzantine Empire: 395 AD – 1453 AD _____________________________________________ 98
Creation of the medieval states: ___________________________________________________________________ 98
Bulgaria: ______________________________________________________________________________________ 98
Serbia: _______________________________________________________________________________________ 99
Hungary, Transylvania, Wallachia, and Moldavia: _________________________________________________ 99
Croatia, Dalmatia, Bosnia, and Albania: ________________________________________________________ 100
Highlights from medieval states: _______________________________________________________________ 101
Evolving landscape illustrated:_________________________________________________________________ 102
The Ottoman Empire: ___________________________________________________________________________ 103
The Ottoman Conquest:_______________________________________________________________________ 103
The Ottoman System: _________________________________________________________________________ 104
18th century: ____________________________________________________________________________________ 109
Late 17th century and Early 18th century: ________________________________________________________ 109
The Balkans Under the Habsburgs: _______________________________________________________________ 110
A decentralised Imperial Model: _______________________________________________________________ 110
Diet of Ausburg and its legacy: _________________________________________________________________ 110
Late 18th century: _____________________________________________________________________________ 111
Habsburg VS Russian economic influence: _____________________________________________________ 112
Pre-industrial Balkans: __________________________________________________________________________ 112
Economics: 16th century – 19th century _________________________________________________________ 112
19 century: ____________________________________________________________________________________ 114
th
The rise of the nation states: ___________________________________________________________________ 114
An overview: ____________________________________________________________________________________ 116
Industrial revolutions, World Wars, and more: 20th century _______________________________ 116
Balkan Wars: 1912-1913 _________________________________________________________________________ 116
The War and its alliances: _____________________________________________________________________ 116
The aftermath: _______________________________________________________________________________ 117
Setup for the First World War: 1914 _______________________________________________________________ 117
Otto Von Bismarck: ___________________________________________________________________________ 117
The eve of the Great War: ______________________________________________________________________ 118
Peace settlements and the national question: ___________________________________________________ 118
Interbellum: ____________________________________________________________________________________ 119
Post war economic and social challenges: ______________________________________________________ 119
The Great Depression: 1929 – 1930 _____________________________________________________________ 120
Post-Great depression: _______________________________________________________________________ 121
The Second World War and the fate of the Balkans: ________________________________________________ 122
Molotov-Ribbentrop Pact: August 1939 _________________________________________________________ 122
The Second World War: _______________________________________________________________________ 123
Inter-Allied negotiations on the Balkans: ________________________________________________________ 124
Post Second World War: _________________________________________________________________________ 125
Establishment of communist regimes: _________________________________________________________ 125
Economic systems: ___________________________________________________________________________ 126
Societal changes under communist rule: _______________________________________________________ 128
COMECON: __________________________________________________________________________________ 129
The collapse of the Soviet Union/USSR: ___________________________________________________________ 130
Dismantling the USSR: ________________________________________________________________________ 130
Hungary:_____________________________________________________________________________________ 131
Heading into the 21st century: ____________________________________________________________________ 131
Post communist transition and European integration: ____________________________________________ 131
5
, Concluding the 20th century: ___________________________________________________________________ 132
Final word: _____________________________________________________________________________ 133
Foreword:
Dear fellow Student,
A few words about this summary:
Learning history based of slides is not really a good approach so I decided to make a sort of syllabus for
this course. However, the document you have before you does not include everything that was in the
slides that were distributed by both Professors. If you want a complete version, I suggest you take a look
at the other documents I have published on Stuvia. You will be able to find every module individually
and also a discount bundle where I oJer the entirety at a very low price.
What I cover in this document:
- Module 1: Introduction
o New York Times article from January 8th, 2025
o Why Nations Fail, The Origins of Power and Prosperity pages 19-56
o Fact check Canada
o PowerPoint (everything)
- Module 2: Classic Antiquity
o Reading material of the Roman Economy
o PowerPoint (everything)
- Module 3: Middle Ages (everything)
- Module 4: From the Early Modern Times to the Industrial Revolution (everything)
- Module 5: Revolutions to WWI (everything)
- Module 7: WWI to WWII and the Road to a New Europe (up to slide 45)
- Module 8: The Balkans (The parts that were covered in the class and with an exclamation mark)
Note that I call the Balkans module 8 while the Professor calls it module 7.
Why no Module 6? – Module 6 was about the exam and had no study material in it.
Why cover Module 7 only up to slide 45? – As the Professor announced for this exam (24-25) you do not
need to study anything after the 45th slide.
Why cover only what you’ve seen in class of Module 8? - As the Professor said during class, he did not
have the time to cover everything so certain things would not be part of what is to study for the exam.
For those who don’t know me, I studied law before this and have had my fair share of history courses to
study so I can speak out of experience. History is not everyone’s favourite course, and it will require
some or even significant eJort to pass this course. It is important to know the dates and understand the
dynamic situation and its context that makes up European Economic History, and that’s exactly what I
tried to provide within this summary. Know that this is probably more than you’re going to need to know
so I suggest you start by understanding the broader movements before starting to learn the facts.
I hope this summary meets your expectations; I have tried to uphold the highest standard possible.
If you would have any questions or remarks for me:
All there is left for me to do is wish you the best of luck with studying and your exam.
~ Koen Hanegreefs
6
,Setting the Scene
Dates:
AD – “Anno Domini” – Year of the Lord/Birthyear of Jesus Christ
BC – “Before Christ” – Dates before the birthyear of Jesus Christ
CE – “Common Era”
BCE – “Before the Common Era”
Aim of the course:
- Being able to understand and describe the main events in the history of Europe and the European
Union (EU)
- Being able to understand and describe the main events in the European Integration
- Being able to analyse the main historical event in their role in creating or destroying the wealth of
nations
- Being able to reflect and explain the determinants of economic development of countries
- Being able to analyse mechanisms that have influenced the transformation of the European
economy
- Being able to evaluate and develop an argumentation on the formation of the European Union and
its current architecture while drawing on important past events, trends, and economic conditions.
Setting the scene: ‘European’ ‘Economic’ ‘History’
Covered in the course is ‘capita selecta’ / selected chapters (or events in our case) for bachelor year 1
of Business Economics:
Defining ‘European’:
When asked the question, what is European you’ll often get very diJerent answers. Is ‘European’ defined
geologically? Is ‘European’ defined culturally? Is ‘European’ a way of life? Is ‘European’ the European
Union? Especially in today’s day and age with arising conflicts, the current economic recession, shifting
political landscapes and an ongoing immigration crisis, opinions are very diJerentiated on whether
people want to be identified as ‘European’.
(examples: Brexit, Ukraine to join the EU?, Georgia…)
A famous quote from a famous American diplomat and secretary of state:
“Who do I call if I want to speak to Europe?” – Henry Kissinger1
Pointing out that the EU lacked/lacks a single diplomatic authority to represent itself. It is still up to the
member states individually to make decisions.
Growth of the EU:
1957: Belgium, The Netherlands, Luxembourg, France, Italy, and Germany
1973: Denmark, Ireland, and the United Kingdom
1981: Greece
1986: Portugal and Spain
1995: Austria, Finland, and Sweden
1
Note that Kissinger never definitively claimed the quote.
7
,2004: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and
Slovenia
2007: Bulgaria and Romania
2013: Croatia
2020: The United Kingdom left
‘European’ in the context of the European Union:
Art. 49 TEU:
Any European State which respects the values referred to in Article 2 and is committed to promoting
them may apply to become a member of the Union. The European Parliament and national Parliaments
shall be notified of this application. The applicant State shall address its application to the Council,
which shall act unanimously after consulting the Commission and after receiving the consent of the
European Parliament, which shall act by a majority of its component members. The conditions of
eligibility agreed upon by the European Council shall be taken into account.
The conditions of admission and the adjustments to the Treaties on which the Union is founded, which
such admission entails, shall be the subject of an agreement between the Member States and the
applicant State. This agreement shall be submitted for ratification by all the contracting States in
accordance with their respective constitutional requirements.
Art. 2 TEU:
The Union is founded on the values of respect for human dignity, freedom, democracy, equality, the rule
of law and respect for human rights, including the rights of persons belonging to minorities.
These values are common to the Member States in a society in which pluralism, non-discrimination,
tolerance, justice, solidarity and equality between women and men prevail.
1987: Morocco applied to join the EU but was rejected by the Council on the grounds that it was not
considered a ‘European State’. The decision was a political one rather than a legally grounded one. In
Briefing No 23: Legal questions of enlargement, it is explained that there is no unequivocal interpretation
of the criterion ‘European State’, “It can be read equally well in geographical, cultural or political terms.”2
or as a combination. As neither of these ways to interpret the criterion has been imposed legally, it
remains a political decision.
Armenia, Georgia, Turkey, and Ukraine satisfy the requirements for application.
Quid Canada:
Ever since the Trump administration took oJice for a second time relations with its northern neighbour
started straining. Trump’s serious claims of his desire to make Canada the US’s 51st state and more
recently the tariJs he imposed has made Canada start looking for new closer allies and trading partners.
Now, there is clear interest and willingness from both Canada and the EU to intensify trade relations and
become closer allies as Trump keeps being unpredictable and increasingly aggressive in his self-
inflicted trade war.
Can Canada be considered a ‘European State’? Opinions diJer, some argue that because Canada has
a European-style public healthcare system, a French and English-speaking culture, and because of its
participation in NATO, it could join the EU. Others argue that because of Canada not being in continental
Europe, it not being a member of the Council of Europe, it not having ancient connections to the cultural
development of Europe, it would not qualify as a ‘European State’, not culturally, politically, or
geographically.
2
https://www.europarl.europa.eu/enlargement/briefings/23a2_en.htm
8
, The Council of Europe:
The council of Europe is an international organisation (≠ EU) that aims to uphold the human rights,
democracy, and the rule of law in Europe. It is the leading human rights organisation on the European
continent, was founded in 1949 and now counts 46 member states that all pledge to uphold the values
and rules written down in the European Convention of Human Rights.
One of the organs of the Council of Europe is the European Court of Human rights (ECHR) (located in
Strasbourg, France and is not to be confused with the Court of Justice of the European Union.
The argument was made that almost all European States are member states of the Council of Europe.
The requirements to become a member state of the Council of Europe are the following:
Art. 4 Statute of the CoE:
Any European State which is deemed to be able and willing to fulfil the provisions of
Article 3 may be invited to become a member of the Council of Europe by the Committee of
Ministers. Any State so invited shall become a member on the deposit on its behalf with the
Secretary General of an instrument of accession to the present Statute.
Art. 3 Statute of the CoE:
Every member of the Council of Europe must accept the principles of the rule of law and of
the enjoyment by all persons within its jurisdiction of human rights and fundamental
freedoms, and collaborate sincerely and eJectively in the realisation of the aim of the
Council as specified in Chapter I.
Europe at the time of the Roman Empire:
As you can see, Europe at the time of the Roman Empire consisted of South and Western Europe, parts
of Sout-West Asia and Parts of North Africa. Are all these places to be considered ‘Europe’?
9
