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J &! &! \!J ~·A~~ R~And~ VOLUME 11 NO. 1. NOVEMBER 1954 ~ C!J &! &! \!J ~·a~~ r~and~ Europe~s First two Years ·THE RECORD· •• The Scltuman Plan is opening up a new era". liaments) which can oust the High Authority That is how a prominent French steel industrialist on a vote of no- confidence : a Christian Demo­ saw the es•ablishment of the European Coal and crat group ( 36 members); Socialist ( 23 mem­ Steel Community in 1952. But a European common bers); and a Liberal group ( 11 members). The market can, no more than Rome, be built in a day. After "Two Years of the Se human Plan • the Eco.. Belgian Liberal leader, Roger Motz, told the nomist's verdict was : •• In many· ways the unique Liberal International in Knokke, Belgium, in achievement of the High Authority in the last two September : years has been its ability to keep its head in the "one of the consequences of these contacts clouds but its feet very squarely on the ground ... in the Assembly has been that members have The two year record is a good one but it is a record of careful groundwork and surefootedness rather than gradually lost the habit of voting systemati­ of spectacular achievement. If at times the High Au­ cally in national groups and that at the pre­ thority has moved slowly, it has moved surely". sent time votes are cast in most cases accor­ How far has the lligh Authority's "slow but sure" ding to puty affiliations.' progress in •• opening np a new era" begun to change the structure of Europe ? TRADES UNIONS The miners, metalworkers and central bu­ reaus of the Trades Unions in the six member countries and the Saar which are affiliated to Breaches in the Frontiers the I.C.F. T.U. last year set up a "Committee Perhaps the most important change has been . of 21" which coordinates their policy in the the most intangible : the breaches made in na­ Community. A small research centre is attached tional dividing lines. Working in a context crea­ to it. The smaller Confederation of Christian ted by supranational institutions which have Trades Unions is creating a Community Fede­ not only a power to act but a responsibility, of ration with its headquaters also in Luxembourg. which they are constantly reminded, to act for (An interview with Heinrich Straeter, President the Community as a whole, various interests of the • Committee of 21 • and a member of the which previously acted nationally are now join­ executive of the German Metalworkers Union is ing up across frontiers. Examples : printed on page 4). POLITICAL PARTIES ECONOMIC GROUPS The three main, non- Communist parties in One instance must suffice: coal retailers in Western Europe have created party groups and Belgium, France, Germany, Italy, Luxembourg secretariats within the Common Assembly (of and the Saar have formed a single association. 78 members elected by and from national Par- _Its object is to get two representatives elected 1 THE MEMBERS OF THE HIGH AUTHORITY ( left to right ) Paul Finet Leon Daum Enm Giacchero Franz Etzel. vice president Jean Monnet, president Albert Coppe, vice president Dirk P. Spierenburg Albert Wehrer H einz Potthoff. to the Consultative Committee which advises being steadily whittled away. •In Germany, for the High Authority on policy. At present only instance, £ 20 millions worth a year of rebates one Dutch coal retailer sits-on the Committee to made by the coal mines to consumers such as voice the views of the 80,000 coal retailers of the railways and shipping companies have been the· Community. The forming of this association abolished, about 10% only remaining for needy shows the value placed by economic interests domestic consumers. The French Treasury's in participating in the purely advisory Consulta­ subsidies on imported coals and the production tive Committee where, in equal numbers, sit of patent fuels have dropped from £ 16 millions producers, trades unionists and consumers-and- .. a year at the end of 1952 to half that today. dealers. The Result is that, despite many anomalies The basic reason for these and other develop­ that still persist, the movement of coal and ments in the same direction is that all those steel within the Community is gradually begin­ who work with the Community, whether friendly ning to conform to the natural laws of the mar­ or reserved, are now convinced that it is practi­ ket. The increase in across-frontier trade figures cal and effective. So much so, that on September within the common market shows this: 17th, Jean Rey, Belgium's Economic Minister, Coal: july 1952 1,350,000 tons speaking personally, suggested at a Benelux July 1953 1, 750,000 tons meeting that the setting up of a supranational July 1954 2,000,000 tons High Authority would greatly help to solve the Steel exchanges rose by over 30% in the same problems of unity within Benelux. Jan Zijlstra, period. France which imported virtually no steel the Dutch Economic Minister, in reply, said he before the common market is buying more and agreed and welcomed the idea. more - at present at the rate of near on 40,000 tons a month (enough steel to make half of Bri­ Results of the Common Market tain's monthly output of cars). Germany, on the other hand, ordered 130,000 tons from France Now that the common market for special steels and the Saar in July - more than they delivered has been opened (on August 1, 1954) a common to Germany during six months in 1952. market exists for all the products within the Increasing trade means increasing competi­ Community's sphere: coal, iron ore, scrap, steel tion. Competition, or the prospect of competition, and special steels. All the obstacles to trade has already led some industrialists to speed up in these products have been ended along the important changes in their methods of operation, 1700 miles of frontier in the six-nation area of such as new concentrations and specialisation Belgium, France, Germany, Italy, Luxembourg of steel enterprises in France and Belgium and and the Netherlands. Within the single market the reorganisation of production i~ high cost thus made possible, subsidies and rebates are mtnes tn the same countries. In France today, 2 four mergers, three of which are due to, or have the regulations are observed and can heavily been hastened by, the coming of the common fine violators. market, now control 55% of France's 12 million tons of steel capacity. l > ANTI· CARTEL LAW The common market has been set up with a The attack on restrictionism is more direct minimum of disturbance. Coal prices have re­ still in the High Authority's anti-cartel rules, mained stable under ceilings fixed by the High the most stringent ever written into European Authority. Supplies were shore in 1953, but eased law. It has made an extensive investigation of steadily till now, in 1954, there are considerable the central coal sales and purchasing organisa­ stocks at the pitheads - about 15 million tons. tions in the various member states, and is due (Much of this coal is low-grade and difficult to shortly to reorganise those of the Ruhr, France sell). General industrial production is rising, so and Belgium. 3) With regard to the "Brussels­ this development seems due less to market Entente", or so-called "export cartel", the variations than to the longterm tendency of fuel High Authority has fewer direct powers. But its oil, hydroelectric power and natural gas to rules have made it impossible for the Entente replace coal as sources of power. effectively to fix production quotas or set up a The steel market, after a slight recession in sales organisation - essential conditions of a 1953, picked up again in 1954. The July rate of cartel's power. The Entente has submitted to production of over 4 5 million tons a year was a and not initiated, changes in export prices Community record. 2 > which hav.e conformed equitably to the market. Despite high demand, prices have on the continued p. 6 whole kept at a slightly lower level than imme­ diately before the common market. TRADE ACROSS FRONTIERS withi1.1 six-nation Community area ( 1000 metric tons) European Policies By the single act of abolishing the frontier barriers to trade in coal and steel, the High Autho­ rity has dealt a heavy blow to national protec­ tionist policies. A fresh wind of competition COAL spreading across a wide market has made new policies possible and necessary - policies which, on the one hand, confirm the forces of competition newly released after decades of restriction and, on the other, prevent the abuse of competition which, historically, led to its 1.000 damming up. These policies, applied not on the JFMAMJJASOND -·-· 1952 -0 19S3 ~ 1954 national, but on the common market, stage are novel enough to merit being called "European" policies. 350 FAIR TRADING CODE Thus. one of the High Authority's aims is to protect the consumer so that he can effectively STEEL 300 obtain his supplies on the most advantageous terms and by this very fact do more eo end res­ triction on the market than any regulations 250 could hope to do. A Fair Trading Code requires producers to publish their prices and not to 200 discriminate between their customers. The High JFMAMJJASOND Authority inspects company ~ooks to see that --1952 Monthly averageO.OOJ953~1954 1) 2) 3) - aee foot note a on pace 8. 3 QUEEN JULIANA of the Netherlands The Government maintains its view on fw:ther EUROPE WITHO European political and economic cooperation, that this cooperation is an indivisible aim which it will not give up., • It continues to A week after the French Natio attach great value to the reinforcement of the Dr.
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