Report of the Study Group, "Economic and Monetary Union 1980"

The Marjolin Report (Brussels, March 1975)

Caption: In 1974, the European Commission signalled its intention to set up a study group to draw up a report on the progress made towards economic and monetary union. On 8 March 1975, the group of experts, known as the study group ‘Economic and Monetary Union 1980’ and chaired by Robert Marjolin, submits its report. This document, called the ‘Marjolin Report’, sets out the main factors that contributed to the Werner Plan being put on hold. Source: Report of the study group, "Economic and monetary union 1980". [ON-LINE]. [Brussels]: European Commission, [23.11.2010]. Disponible sur http://ec.europa.eu/economy_finance/emu_history/documentation/chapter7/19750308en57reportstudygroup.pdf. Copyright: (c) European Union, 1995-2014 URL: http://www.cvce.eu/obj/the_marjolin_report_brussels_march_1975-en-93d25b61-6148-453d-9fa7- 9e220e874dc5.html Last updated: 20/10/2014

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EUROPEAN COMMUNITIES EU ROPEAN COMMUN ITI ES , COMMISSION ... COMMISSIONDirectorate-General for economic and financial affairs Directorate-General for aconornlc and financial affairs

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6) REPORTREPORT OF THEOF STUDY THE STUDY GROUP GROUP «ECONOMIC«ECONOMIC AND MONETARY AND MONETARY UNION UNION 1980» 1980»

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W I Brussels. March 1975 ID - 63 COMIHSSION nm - 63 r OF THE OF THE EUROPEAN COMMUNITIES ::-.. EUROPEAN COMMUNITIES

Directorate-General Directorate-General of Economic and Financial Affairs Brussels, 8 March 1975 of Economic 8Jrui Financial Affairs Brussels, 8 March 1975

BEFom OF THE .. IlEPORT OF TEE STUDY GROUP" ECONOMIC AND MONErARY UNION 1980 It srUDY GROUP " EOONOIHC AHD M01TErARY UNION 1980 u

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'. ~ I II/675/3/74-E fin. PR EFACE ~'I fin. p 'At the start of 1974, the EUropean'II/675/3!74-E ObmmisiHon asked a group of experts . in different sCJ.entifict~Î{e-c'Op6kEj;irç~sJ~~~0~:b:e!:!~lo~slo'k1sd.f';:}wt~Pdraw "Study Group on EConomic and N6netary Union 1980" hasup met a study on economfcunder theand chairmanshipmonetary urrionofMr"{EMU).TheMARJOLIN; gr-oup formerof exper-t Vice-presidents , of the called the ItStudyCommission,Group orrEconomi.o in charge of and economièNonetary andUnion monetary1980" affairs. has met (The names of under thecnairmanshipthe groupof'Mr", membersMARJOLni; figur~ onformera listVice-presidentof herewith' attaohed)othe Cernrnission, in charge' of eeonomie and monetary affairs6 (The names of the group members'.Another.figure inèmber:ofon a list the herewith' grou'p, Monsieur' attaohed)6 CLAPPIER, was oalled upon to assume other responsibilities which prev~nted him from cont:L~uing to '1ln6ther,inemberparticipatei of the group, in the Monsieur work ofCLAPPIER, the group. was The ca.llecl groupupon sincerely to thanks him ..ansume other respor...sibilitiesfor the importantwhich contributionpr-even+ed whichhäm trom he made~tocont i.nul.ng; its work4to participate in the work of the group. The group sincerely thanks hirn :for the importantIn conformity contributien withwhloh the' mandatehe made ofto theits Commission,werkt! and in order to continue in greater depth the examination of the development of economic In conformityand with monetary the' mandate unionof'the within Comrnission, the frameworkand ofin theorderestblishmel'1tto oon- of a EUropean tinue in greatcrUnion,depth the the object examinaiionof the study cf the hasdevelopment been to undertake of ec6nomioan a:"'1alysisofthe and mone tary uni.onproblemswi thinraised the by framework the achievement of the estblishment of ~mJ taking of into a European account the major Union, the cbjectchanges of the to be study expected has been by 1980. to undortake an analysis of the problems raised by the achievement of ~mu taking into aocount the major changes to be Inexpectedview ofby the1980. originality of the problems posed by the formulation of this policy, the group was given a very high degree of freedom, both In view cf thein originality the choice cf of the problemsproble~B to beposed tackledby the and formu1ation in the methods cf to be con- .,'this policy, thesidered group for was their given solution. a very high degree cf freedom, bcth in the ohoioe cf problems 1;0 be taokled and in the methods tc be considered for theirThe groupsolutiono has approved its report as a whole, although it does not reflect each member's opinions in every nuance~ The coherence of the whole The group has programmeapproved its is morereport importantas a whole, than although each proposal it does takennot alone"re- fleet e"Lch rnember's opinions in every nuance" The coherence cf the whcle progr-ammo 18 more important than eaoh proposal taken a1oneo

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he repor:t; is , divide~ intp f~~~ oJW:p~~r~' The , !'irst draws, up , a, balance sheet of past events e.nd an "t;l.na.lysis of . th~, movement towards economic and monetary union. The seconddee.ls ,with the urgentp~obleIIJs which endanger the e~stenqe of. th(;') ~ropea.n Communi 'ty. Thisoha.pter ~s followed ~y a. short-t~~ programme ;(cha~ter ~II), w1:-ichgiven the evolution which the C~mmuni ty' ha.sundergone in recent years , i~ e~~lt largelY devoted to monetary policy. Ittgenera.l , however, this progralllI!le can be ' co~i- dered as a test of the political will of the member states' , governments. Fi~lly, chapter IV examines in greater .detail the first steps , towards eoo.nomic and monet""ry ,unioho

Two annexes are added to the report. : annex I contains details of tb.e Group' s proposal relating to a, Community unemployment benefit ameme , and. wUoh has ~he a~~ement gf ,all the members of the , GX'QUp. .A.m1e~ II brings together some personal contributions.

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III

LIm' OF THE MEMBERS, OF THEsrUDY GROUP

"ECONmuc lUfDP40NEr.I\RY unION 1980"

Chairman R. 'f-.furjo1in - Former lTice-President of the 'Commission of the European Economic Community ~embers

F. )3obba - President of "Acqua. Pia Atttica Marcia Rome W .J. Bosman - Professor of money; credit and banking at the University ,of Tilburg G. Dro'l1.wers - Chairman of the Chamber of Commerce a.nd Industry a:if The Hague L. Camu. - President of the "Ba.nqu.e de :Bruxelles" B. Clappier - Director-Genera1 of "Credit National" (until June 1974) Paris I. Foighel - Professor in Law liLt the Uni vj3rsi ty of Copenhagen

F. Forte - Vice-President, of EN:I , Rorae Ho Giersch - Director of the "Institut fUr 11elt- ~1irtsohnft an der Un:Lversitat Kiel" P.. Lynch - Professor in Econorniosat the National University of Ireland Sir Donald Macpougall , - Chief Eoonomic Adviser of the Confedera- tion of British Industry, London H. MarklIlann -Director of the, "Hirtschaft- und Sozialwissenschaftliches Insti tut des DGB" F. Peeters - Professor in '~ontimli.oo at the University of Louvain A. Shohfield Director of the "Royal Institute of International Affairs" , London :N:~ Thygesen - Professor, in Economics at the Uni versi ty of Copenhagen

Secretariat ofthe.,Commi,ssion

J . C. l'Iorel J.. Schuler A. Tieleman

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CONTENTS

Preface

List of the mem:!?.ers of the study gI'ouI1 III "Economic and Mol~etary Union 80

I. ~':-\.~.~'!l9~~UE.wards Economic and Mone.tary Uhic)n :~~oe sheet and pros~cts

1.. Where have we got to ? 2. The reasons for the failure 3. The objective

II. Ur~eni-rroblems 1. Inflcttion 2. Unemplo;yment 3. Balance of Payments Deficits

III. A short-term programme

A. The geheral lines

1. Investment support 2. Pro.motingfi:natlcial savings 3. Regional policy 4. Participation of the , Sqcial Partners in the deSign of Community policy

:13" Financial..-c!:nd Monetary problems

1. A Communi ~y system ,for ,internal and external monetary policies

2. Exte:rnal borrowing and an Exoha.nge Stabili- zation Fund for the Community 3. A Etlropeap. unit of account and official means of settlement

IV. First s1eps tpwar~~ economic ~d monetary, uniqn

1. The cnnd.:itiohS for an economic and moneta~J union 2. The first steps :?9 a) Industrial policy :?9 b) Energy policy ~:r c) Capital market policies d) The Community s budgetary policy e) ACornmunity unemployment benefit fund Annex: Community Unemployment Ben~Hs Scheme Tabl es

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13AL,AlTCE SHEEJr lJI12 , I. THE I-~OVEMENT TOHARDS EQONOMICf-.ND nONlill'ARY mD:ON- RQ,sfEOlE,

, 1.. !t; "Ie....& ~!:Lbave It became clear to the Group that in order to , be ablE;! to say anything useful about the fu:l;ure it was essential to qraw up first of all a balance sneet for the pas:!; and in particular of the results of the effor"ts made since the Hague Sumrni t of 1969 towe.rds the creation of a EUropean Economic and Monetary Union (1).

To a;void f!.:rry misunde:,standing, the Group wishes to emphasize that it remains deeply committed to the idea of European un! ty and that this appears to it more necessary than ever if the States of t"iesternEllrope are going to be able to contfnue to Playa rOlei'n world affairs and all sides. protect themselves against; the dangers ..lhich threaten them fJli~;m Alone , their impotence becomes 'every day more obvio~s;' only unity can restore to them the influence which they have' lost.

, But without denying certain progress of a technical nature, notably as reGards cooperation between the c,entral banks , the Group is of the opinion that the efforts undertaken since 1969 add up to a f~dlure. The "snako" has exploded and the I1na,rroi'l/ing of the rnargins of fluctuation" no longer exists except between those currencies which are more or less closely linked with the Deutsohe Mark; the Nonetary Cooperation Fund. only plays a, minor ~le in European monetary affairs.

Europe is no nearer to E. U. than in 1969. In fact if there has been any movement i thas been back..tard, The, Europe of the , Sixties repre- , ..ms sented a relatively harmonious eco~omic an~ monetary entity which undone in the course of recent years; national economic and monetary polio~es have never in 25 years been more discordant , more divergent, than they are toda;)r

see1f:ing', 5'he only thing to be said is that each national policy is each indi- solve problems and tooV0roome diffic111ties which arise in ' vidual country, vdthout reference to Europe as an entity.a. The diagnosis is at national leveli efforts are made at national level. The coordination of national policies is a Ilous ~rish which is hc'\rdlyever achieved in practice~

(1) Designated hereafter by the S3~Jbol Eo

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The result is that whe~,ono- 2 - speclcs of Europeon~ is talkin~ basic~lly about , ' a geographical entity situated between the U.S.A. and the U.S.S.R., composed -, of States which trade int€nsively among themselves but which in mast other Thc result is that whe~,ono spe~:s of Europeon~ i8 talkinc basic~lly about respects behave in their national affairs and'inworld,affairs according to '!10 a geographical entity situ~ted between the U.S.A. ~d the U.S.S.R., composed the trends :md tho particular interests of each. cf States which tr~de int€nsively ~mong thornselves but which in mJst other respects behavGThis situationin thair national is felt morea.ffairs or lessand'illworld clearly byaffa.ire the inhabitants D..ccording to of this area.

" the trends The~d idea tho particular of a united interests Europe, whileof each. enjoying the passive sympathy of the

majority of the popub.tion" in most Community oountries', ,is not one which This situation i8 feIt more or less clearly b,y the inhabitants of this area. ca~ries force. The goodwill with which it is g~nerally recoived is usually The Ldea of a llnited Europe, 'ltlhileenjoying the pa.ssive sympa.th,yof tho accomp:mièd b.Y scepticism, beèause of the lack of a clear political commit- ma~ority of the population in most Community oountries, ~s not one which ment b,y political le~ders. carr~es foroe. The goodwill with which it i8 g~nerally recoivod i8 usually T'neb,y EUropean institutionsof carry out the rôle assigned tç> them by the treaties . 'accomp,~iod scepticism, because thc l~ck of a elear political cornmit- mont by politicalof Paris le~dors. and Rome ~~d watch over as efficiently as possible the execution of these treaties and the administrative decisions which hav~ been taken sinco T'ne E'uropean institut ions C3.I'IJr out the rale ass Igned t9 thcm b;r the treaties. their entI"'Jinto ~force. The lack of any discernible progress for severa.l of Paris and Rone and watch ovar as efficiently as possible , the execution of , years towards the unification of Europe means however that their authority these treaties and the administrative deoisions which Q~ve been takcn sillee i3 wc~~ened and that they have ce~sed to be considered as the precursors thoir p.nt~J into ,force. Thc lack cf .~ discernible prof,rcss för sever~l of institutions which will watch over the destiny of a united Europe. years towards the unification of Europe mecns however th~t their authority b wca,.1<:cnedandThe Headsthat oftheyStatehave or ceased of Governmentto be consideredhave decided as the toprecursors meet regularly three of instituttimes ions which a year will at the watchCouncil over thoof thedestu\1 Communities.,cf a united It isEurope. still too soon to form a.i1,y judgement on the scope of'such an in.'1,ovatiol1.. The Heads of state or of Governmcnt have dccided to meet regularly threo .: , timoa a -year at the Council of thc Commul1ities., It La still too soon to form aby. judgement on the acope of' such an ilmovation.* * * '"

The centrifugal movement which* characterizes national policies has deeply af'fected Community achievements.**

The centrifugal~he Common movement Agricultural which charactcrizesPolicy is in national a statepolicies of crisis. has Thedeeply monetary p~oblems affected Community'VJhich have achievcments. arisen since 1969. ~d the frequent refusal of governments to permit the pride adjustments in national currencies, which would normally ~hc Common Agricultural Policy is in astate of crisis. Thc monet~ry problems have resulted therefrom, have led to the creation of a system of compensatory ~': to'lhieh have ar i sen ai.nce 1969'. and the freqU€mt rofus3.1 of govcrnmerrta to pajrments of such complexity thät it is incomprehensible to the uninitiated. permit the pridc adjustmonts in national currencies, which would normally " have: resulted thercI'rom, ho..veled to thc crcation of a system cf conpcnsatory paJrments of suoh complcxity th~t it is incomprehonsible to the unihitiat~d.

l 9 / 140 20/10/2014 3 ... 1k1//ffffI/ß hlnil::{ -~ fin. - 3 .•. - ~ The unity of agricultural prices in the Community is damagedand the single The uni ty ofagricul tural prices in the Community i8 damaged and the single market split into several fragments whioh, given the attitudes of certain market split into several fragments which, given the a1;titudes cf certain of them, it is hard to see being "stuck together again" in the foreseeable cf themt it is hard to see being "stuck together again" in the foreseeable future. fu.ture~

The extent of liberalilation of capital movements ,dthin the Community is The extent of liberalilation of capital ~ovements within the Community is less than it was at the beginning of the Sixties. Following the more or less 1ess than itwas at the beginning cf the Sixties. Following the more or less unilateralrlecisions taken by a certain number of governments, the situation unilateraldecisions taken by a certain number cf governments, the situation in different countries varies considerably; while certain ,countries hav~ in different countries varies considerably; while certain,countries hav~ maintained the degree of liberalisation previously attained, others have maintained the degree of liberalisation previously att~inedt others have reimposed restrictions., No common. strategy with regard to external capital .~reimposed restric~ions. No common strategy with regard. to ext erna I capital '. has in fact come ab~ut nor does one seem capable of realisation in the ne~ has in fact come ab~ut nor does one seem cQpable cf realisation in the nes: ,future. ,future.

The customs union for industrial and allied products. is the true livjng The cus'toms union for industrial and allied products. is the true li ving element in the Community.o The considerabl e balance of payments defiei ts element in the Community •.The considerable balance of payments defic~ts which several member countries bave to face constitute meanwhile a menaQe which eeveral mambar countries have to face constitute meanwhile 'B menace .für, the free circulation of goüds. If the st tuatiün is not dealt with ade- !or;the free circulation of goode. If the s~tuation i9 ·not dealt with ade- quat ely , as it can onl;1 be by a coherep.t body of apprüpriate !lr:1.tiona~ po.... quat ely , aa i t can onl~· be by a coher-errt body of appropriate nationa:). po ...•. 1icies, Community actions E\..ndcooperative, measures throughout the western:. licies, Community nctions and cooperative. meaaur-es throughout the western'. world (including Japan), there is a serious danger of seeing üne country world (including Japan), there is a serious dwnger of seeing one country ür anothermstore import restricttons or h,ave recourse .to other measures or another :restore import restrict.tons 01' have recourse .to other measures borrowed from the protectionist armoury. eborrowed from the protectionist armour,y. 2. The reasons for the failure 2. Thc reaSons for thc failure . The Group Considers that the causes of this failure can 'be traced 'back to The Group öonsiders tlw.t the causas cf this failure can be traced back to tnreè principàl~ones: unfavourableevents, a.lack of political will, and tnree principal'ones: unfavourable·events, a lack cf political will, and insufficient understanding in the past; of the meaning: of an E~rJ[.U. arid the insufficient understandihg in the pe.st: of the meani.ng: of" an E~l1.U. arid the candi tiüns which lTIIlst be fulfilled if it is to sèe the light of day and be- oondi tions which must be fulfilled if i t 113to see the light of day and become operational. come cperrrbd.ona.l.,

The unfavourable events dre the internationàl monetary crisis which has shaken The unf'avcurab le events ar-e the internatioruH monetary crisis which has ahaken .. the western world since the end of the Sixties, toge~her with the financial the western world sinee the end of the Sirlies, togei;her wi th the financia.l crisis brought about ~ the sharp rise in oil prices in 1973. These profound crisis brQught about bT the shaz-p rise in oil priees in 1973. These profound disturbances hàd'1'1ot been foreséen when the decision to create a. Eu.ropean disturbances bad'not been for€seen when thc deoision to create a European E.M.U. fJaS taken. They were not foreseea'ble, at least as regards the form E.NI.U. was taken.They were not foreseeable, at least as regards the form which they took and the moment at which thoy occurred~ which thcy took and the moment at which thoy ocour-r-eds .. 10 / 140 20/10/2014 - 4,,- II/675/3/r£nf7~tin. - 4- Like all crises, they could have èeen the occasion of progress, by provo- -oJ

Like all crises~king a they cr.ystallization could have been of latent the occasion wills. Great of progress thingst areby provo- almost always done king a cr,ystallizationin crises. Those cf latent of recent wills. yearsGreat couldthings have are èeenalmost the occasionalways done for a leap in crisee.forward. Those of recent years could have been the occasion for a leap forward. Why did they on the, contrary cause a step back ? The fact is that at no Why did. theytime on did the the contrary governments cause a really step back? try to The face fact together is that thediffioult at no circum- time did thestances. governments Theirreally will didtry not to show faoe itself together as the· a European difficul will;t circum- but a series etances. Theirof national will did wills not show moreitself or lessas unaware a European of those wil1~ of but the a others, Baries each one' of nationaldoing wille its more best or to less find unaware its own cf way those out cf of the trouble~ others, Attempts each one to face up to doing its bestthe different to find its crises cwn way through out ofcommunal trouble.action Atternptsto have been face timid up to and short-lived. .. the different crises through communal action have been timid and short-lived. The conâequences of this state of affairs have been aggravated by the fact The oonäequenoesof the cf decision thia state in 1969 cf affairsto create have an been E.M.U. aggravated in the courseby the of fact the next ten of the decisionyears,in without1969 toany craateprecisean E.M.U. idea öfwhatin the was course beingof undertaken.the next ten At government years, withoutlevel,MY therepreoise was 'no idea analysis, ·of·what was even being approximative,of·undertaken. At thegovernment conditions to be level, therefulfilled.was no analysis, It was justeven asapproxirnativ9,of if. the governments the hadconditions undertaken to be the enterprise in fulfilled.the It was naive just beliefas if ,thatthe itgovernments was sufficientbad undertaken to decreethe the enterprise formation ofin an E.M.U. the naive belieffor thisthat toit comewas .about suffieient at the to enddecree of a few the years,formation without01' an great E.M.U. effort nor for this todifficultcorno.about and at painful tho end·of economic ~ few and years, politicalwithout·great transformations.effort nor diffioult e~d painful economic and po11tical transformations, There was insufficient appreciation of the essential différence between Thera was insufficienta customs union, appreciation as defined of by the the essential Treaty of difference Rome, and between an Êconomio and ft a cuatorne union,Monetary as Union. defined by the Treaty of Rome, and an Economio and Monetary Union. The Customs Unfon merely supposes that governments give up, except in excet>- The QustornettonalUnä'on oircumstances,merely supposes the that use,. governments in the pursuit give up, of their except national in excep- interests, tional circumstances,of the instruments the use, of in commercialthc pursuit ~licy,of theirnational notably customsinterests, duties and quanti- cf the instrumentstative restrictions; of cornrnercial all~licy, the other notably instrumentsaustorne dutiesof economic end quanti-and monetary tative restrictionsipolicy remain all atthe the oth~r disposition1nstruments of eachof eeonomie one ~f them. and monetar.y polio;r r-emaän of at the dispoai t10n of each one them. '" In an Economic, a,nd Monetary Union, national governments put at the disposal

In an Economic.andof the common Monetar,y institutionsUnion, netiotk~l the usegovernments of all theput instrumentsat the disposal of monetary policy ~ of the commonand institutions of economic policy the uae whose cf all action the instruments should be exeroi~ed of"monetary for policy the Commqnity and of eoonomioas a whole.policy These whose institutionsaction shouldmoreoverbe exercised must have for the a discretionary Co~ity power as a whole.similar These institutions to that which moreover national must governments have a discretionar,y possess now, power in order to be similar toable that to which meetnational unexpectedgovernments events. passeas now, in ord.er to be able tomeet unexpected events.

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cr It is p:r:"'.1'::ti;ally impossi1Jl,e .to SE)t out in detail what. t1:lGse instit1.1tions "Jouli~3.ve to QG or the:cr functiorÜng. One can.. pa~'t hO}'l8vc:r, that t):J.0Y ,\rould.

~ ha7C ,~o inolucl~ a Bu;ropoa.n political p)H<;Jr an impQr,tant COmLlunity. budget, . It is pr,~~ti1?3.11yimpo3siblp .t o SElt out in. dct:ül what, thqse institut1,ons and an integratGd systen of central panks.,Tpey T,~~ldbe called uponto vJoul'ip::W8 to qC ,ar the~_r funct i on lng, One GeU}:t;;a.y however. th3.t th.;:;y 1"roulcl function in tho a~)propriate fields .;in, a comparable way t9 those of £~fpdera.l havo ,ta ii'lcl ude a. ]AropC<3.l1 pol i,'j; i 0<3..1, p:JW;:lr an iElpQr;:tMt Com.r:nmity, budget t ~..' state. . ',' ' and an integratGd systen of cent.r-aI bariks." Thc;y 1'1'01).ld, be called upon to

func't i.on~'Jh3.t in thc is appropr-i.at nOt-r beinge questioned fields }n, Cl. iscomrn,rabloway the;' ..idea which t? has those beenof the'basisi:~fpderal for 'the st3..te. pást20 years of the viovrs of RlaJwEuropeans,namcly that a É11.ropoan pblitical unity, particularl;jin the economic and rilOneta~J field, "rill come about in ~'.Jb{1,tis nJH being quo'st i.oned is ,the; ..Ldea which has been thc'hasis for 'the an almQst impercoptible my. This was 'the Œ'uro'pe of sraa11 ste1)s~:It is clear past 20 year-s ofthe ViO"18 of marq Eu.ropeans, flwncly that a EUrQP0M pbli tical _that,oxperience up tó'now sho'WS nothingtll'1t. S1ipports 'the vo,lidity of this 11-'1itYt particularlyin the oconomt c and mone+ary f'Lel.d, 'i>rill como about in idea. Oae ma.ylegi timatol:.r ..ronder today if ,,-Thatmay be required in order to an a.lmost imp(:rccptiuIe "'1!'l0~•• This was 'the Eur-ope of sraa.LI st8ys~':'It Ls clGCl.I' create tllO conii tions for an economic [k'1dmon8tar~r m1ion is not perhaps on th:.t 'QxperiE1cc U;) tb'naw shows nothing t·iln.t ,mippopts 'the vnlidi'ty, of this the contr:J.ry a raclic3.1 ani almost inst:mt'lneous tra:'J:sfcrmation, cominis 3.bout Ldoa, OLlE) may legi tim.::ctoly ;,rondor tode.y if ~r.hat [jay be requirüd in order to . 'ccrt,Ü:,:Üy 3.fterlong discussiJns, but. giving rise at' aprücisc point in time cr-oat o tllO cond.i.t i.ons for J.....'1economic and mone+ary uni.on is not perhaps on to,Eutopdin political 'institutions. tho corrt r-ary a r-ad'icaL and.e.Imoat inst:mt',meo'J.s tra;::rsf'c:r:'I!lation~ cor;dtJ.t~"'. about ,. .. . , "... I',,:' ) ." ., r[1j",,- ö+' . ,_e,;.i ~ ,T,.o._ .p h __~(> ..,:'. ..-1 ~~",-,r."c .l.ong- '" 'r l' t ",:;),)V" f' ':'\,.n"" 1v uJ.~ d.l1,c f;iv-011pr-cc the )g0110r-1.1irrt {p'ol:itI"r.al âJ.là_ ','ccrkd::lly 3.f~cr """..'discussiJnsl 8" . but giving. " '"''''risc '" a1l a i.ao po in time - t o ] up a' plal1för EoM~tJ~'whic:} wouid haire 2. în:.ffiô'ient T!lcr~fyr.iet 'in ,\ri0;',; of tbe :-;'~),)Vo 2.nc.l;yds ~m"!_Civell the ,g·(:,nGrJ..l'.., \;'o:C1tJrcal and de'Greo,.l.of créd.i~-)il>it~r'~'( econor.i~) circtunst:W:lc'CS \1h5.oh Gx{st in Europe t~dv, it',:l'icl not s("!er~rtsi.';l'l';1.J:L t'c.J 'be Group3. :TIle+o d:::-3.1J obj.8ctivGup a plan for EDH~tJ~' ~):ÜC!1 wou'ld have :1 'su.ffi6'ient deGroo'.'of crödi:;ihtY'.', _ 'ß1) Grou~), with:J1.1t 1L"1.derestinatil1:Z thE) results obtainqd fr)I1 more thJ.H t;vehty ~{ears of effort to intei.;TJ.te Europe econonically, i~ cOlJ.vil1cecl that further proCTess requires tho môk'1ifestJ.tion of a political wilt~ This will is tod~y

'J.1l'F) Gr01q, with':lut under-eat Inat ing "tht:) ~esults obtaiDqcl fr:F~: mcr o thJ.n t;,renty uncertain anI noods to" show its81f 3.nd to fortif~' itself< by action. ,ltJ. tiE1e vcar-a of c:::'f'}rt to inteL~TJ.t8Europo oconorri.ca.Lfy , i\? convi.nced t hat further l.hen E.'urope finds itself cO:1.frontod 't'dth redoutable clo.ng'::;rs, under the nc~mes prOfT8S8 rcquires tha m(~lifest~tionof a political will. T~is ~ill is tod~ of "irflatioIlIô, "massive balQJ1~o of pa.;ymonts deficits"t "unemploymentç" the uncer-ta in and noodc to show :i.tsclf 3,11(1 to fortif~' itself by act i.on, ,\t .:1 t i.me only roasonablo a.nd possi'ble vi,3Y for the momber countriês is to face togethor; rE~L18S t.hen E'uroy.le finds itsclf conf'r-orrb cd 'dth r-edout ab'l e d.n.ng<:::rsl und.er- t11e and, il" cooperation viith North Anerica and Japan, these perils, Nithout askir.g of r1irflatioll1'< , "masa ive 'oalcü)I"!O of paymerrt s Qefici ts I1 t "unernp.l oyment.'", the ton mm~ questions about lancer terD problems. cuIy rCCl.sonnb18 and p08si!:"lle '[,1,=0/ for the morabar- courrt r-Les i!'; tn face togc:thor; . arid in coopcr-atIf in tho Lon presence .'Tith North ofA00rica. these gra.ve and J3.pan, d:mgorsthese a. minimumperils, of Hithout 1LVJ.ity andask cor.,e~>i')nir.g

tOI') many queGtionsC~1D~t be createdJ."001.1t lonCGr it doestGr~.1 notprOblems. Re0m very usoful to pursue the discussion on

If in thc prcsenoe of these gravc dmg8rs a mi.rrirsum of 1L"1i "cy arid cohoui on o~mot bc created it ~ocs not soom very useful to puroue tho diGcuQsion on

I 12 / 140 20/10/2014 ~.~~-~- _~'_~ ....a:.. "~-."",,_"S:; -- -' 6 ...' 11/675/3/74 ... E fin.

E.M.U~ or European Union. But if on the other hand a common will emerges in .,: 6- -- 11/675/3/74 - E fin. the next yearœ two, concerning conorete, precise and urgent problems, -~

Europe will find itsàfat the end of 'this short period in a situation

E.H.U" or European Union. But if on tho otherhand a commonwill emerC8S in ~... such that the grand designs which have been discussed 'by the Summits of the next year er two, concerning concr-et e, pr-ecdae and urgent problems, recent years might once again seem conceivable. Ne,,,plans'could then be Europe will find i tsdf at the end of' 'ihis short' per-rod in a situation dram~ up with some chance of realisation. such that the grand designs which have beendiscussed -by the Summits cf reeent years might once agai-n-aeem conoei vabl.a, NeH plans' cou.Id then be It is for these reasons that the Group devot.ed a oonsiderable part of the, draw.~ up with some chance of realis~tion. time available to it to the analysis of the da~gers which threaten not

only Europe 'but also each of the membqrcountries taken on its own, ~~d It i8 forthe_s9reasons that-the Group devobed a considerable part of the-_ to drawipg up a list of actions which should be undertaken to overCome the time available to i t to the analysis of the dengens which threaten not ' dangers and prevent the disappea,rance of what still remains of Community anIy EUrope but also each of the membqrcountries taken on its own, ~~d - achievement. to drawi,ng up a list cf actions which should be undertaken to overCODC the dangeI'S andprevent the disappe~rance of what still remains of Community Moreover it considers that the governments should vdthout delay, during achievement", the coUrse of the phase of ,:one' ort1'TO years, mentioned above, take a certain number of decisions whoso effect is in the longer term and which wW.ld Moreover it cons1ders th~t ihe governments should ~~thout delay, during :D:::lltlBaSe the degree of interpenetration ci:the Community economies, re-: the course of the phase ofone- ortllo years rnentioned above, take a c.ertn.in inforce their unity in face of the d~gers which surround the~ and bring number cf dee1_sions whosc effect is in the longer term end which wWuld nearer the time when the creation of an Eiln.Uo might 'be seriously envisaged. :iil:.üO'Ba.se the cegree of interpenetration cf the, . Community economiss, r8-: These decisions concern primarily the abolition of obstacles tb the movement inforce their unity in face of the dangers which surround the8 end bring of goods, ser\~ces and capital;- the development -of financial solidarity; nearer thc time when the creation of' an E.n~Uo might 'be seriously envisaged • and the' establishment of a Cornmuni. ty budget on such a scale that the impor- These decisions concern primarily the abolition of obstacles to the movemont tant transfers whioh the maintenance of EoM.U. \'lill require can t1:tke plaoe of geods, ser~~ces and eapital; tho dcvelopment of financial solidarity; and be financed out of Community taxation. - and theestablishment of a Community budget on such aseale that the important transfers which the rnaintenance of E.MoUIt Nill require can tnke p'l ace end be financed out of Communi ty taxation.

13 / 140 20/10/2014 '~,'c:. . _ .__J ~ ~ ' '0r.( r.:;I /",' 1'(' J..'~ l I I/ ' ./ i J /I ,,~='L' ,1 - 7 - " II. URGE:IJlr PROBLF.J'IS *"J'r:""'*~..tIZ.'~~j.'.~~ ~r..7;';':' Three sources oi:' d:f?iculties- 7 me~ace - the Comm;.mity: inflation, unemployment and ()3,18...1100of' pay,.1it'l:ts deficits. These thr~ats reveal theJJselv8G in EI, cl'isi;:; atmosphere. in t.;ioh cwer3'onG wonders about the s-~ruc'bural chan€=s requirecl, Thre'3 SOUrC8S of d:f?iculties menace the Conmurrity: inflation, unemp'loymen+ .~' the future leval of grmd:.h and even its na:Lure. end. bs.l ance of' pay..li,,~:ts det'Lc it s , These thr",ats r-evea.I the;nse}Y.;:;G in 21, c...x'isi.,s

a+moephere,1._:w.~~.:A..~).v.:G-.:' Irt i.n fiatri.eh +,i 0:1-ülTeryonG wonders abouf tho ~3'~ru.ctura1 Char~€'3s required.,

the future'Ihe Leval, rise inof' price3grm~th hasarid not even ceasedi ts I1cl.tUI''3. ind:-easing during the last few years. Consumer price inflation t'las abouT 3 % a year fr;")~ 1958 to 1968, on a weighted Community a~re:::'age~ for th') 3'Gars 19')9 to 1972 i-t; reached 5.,6 %; bui l'las 'Ihe rise in pr i.oes has not ceased ind.:,easing dm'ing the last few years. 8~ 2 % in 1973 and r;wre than 13 % in 1974. This acoeleration is p2.rtly to be consumor- pr-Lce inflation was abouf 3 % a year fr;JCT! 1958 +c 19(;'1:5J on a weighted exr1ained by the ex.:?a.nsionary measurès tak'3:1 in the induGtrialised countries, Comrmm.ity a\l'erage3 for th0 year-s 19')9 to 1972 i-t r eacbed 5,6 %~ birs was whiôl1 vJ()l'e similarly exoessi ve foUovling the minor reoessio:r1 of 19,/C}.,.1~\'1.. On 8~ 2 % in 1973 and raor-e th?"",~ 13 % in 1974. This acc el.er-a+i on Ls p2..I'Hy to be the other hand governments and o<3ntral bank:s let expansion take a grip in -e::.r;r.l"tined by the expans i onar'y moaeur-es tak::3;~ in the induc3t:dalised count r-i.ee , 1972 and 1973 without 'taking in timè the restrictive measures required. ::i.1 the whioh \'le:ce similarly exceas ive following the minor r-eceae i on oi 19·f()"'1~'"':]l•. On monetary, 3"S t'iTell as in the fiscal and budgetar;y fields. In particular ,1.:1

tho other hand government s and cerrtr-a l banks let; exye,nsion take a gr-i p in. .. " increase in the v:llume of maney in ]~ember sta.tes of the 0:::'(1er" of 9 - 2') ~, a 1972 and 1973 wi thout taking in time the l'8strict.iv·Q' TIl'9aSUl'eS req:uJ.recl :~.'-1the year between the end of 1970 aJld the end of 1974 t'las eviÔ.d::1 tly incompatit':~0 monetary, 3,3 i-iell as in the fiscal and budget.ary Eeldr;. In par-bi cul ar- ,,<21 wi t.h' the objecti.ve ot price stabili ty. ',ü.crease in the v:üume of money in l~ember stE:,tes cf tns y::.'der of 9 - i.') %. a

yea;: bctt..;eenTho pricethe endof 1!"iuBtrial of 1970 and rat" the me.terials end cf 1974 du:;::ing\'las aeviri\.i!lCly period of'Lncompat.ihigh demand,b l o eve~ Qf wi +,h' theSi)(;ou.lation,ob j ec+i.ve or inor,,-;3,sedpri'oe stabilveryi ty.rapidly. 'The Communit;'l was partly Sp?T',:')d the rise in the, price of food théIXJks to the COIT::rlonAgï~ic1',ltLèral Policy. F':'om the ThG pr-ice cf i!~ctw::trial raN materials du:r.'ing aperiod oi: high demand., even 0f su.:l1mer ai' 1974 1,J16 effects of price.tr-,-.:;TJ-,a.. ~ in raw ;na-~e:!'ials 0:1 the gcne:r-a1 Si) (:;t)ul a:t Lon , Lnor-caaed >.rery rapidly. 'I'he Communi t~iwas pcJ.Xtly sp::,.r,:;d the price level have substalliia11y v:8akened. rise in thc· price of' f'ood than];:;.9 to the Cerrenen Ag'~ic1'!.ltu.ralPQli(W~ Fr-om the

suramer of'The1974 risethe in eff'ects the price of ofprice:i'r;·;:,s.""'J-;UiJ(;$ oil, intrù.di.ng:i.n atraw the;nate~'ia18 end of 19730:1 thGgel1e:r,ü ~was much more brui,;:' 1) -pr-i.ce leveland :::ts have consequel~cessubstalltiall;y nr;.ch ~.-eakened. deeper; as a rp.stllt of its mechan.ioè',l e:ffect aJ.cm,' the dirêct iIlcreased 1):1:':;,080:1:"enlc?l'gy acc:nl.'1ts :for é'. qu'1..."ier o:~ e-.ron a third of The rise in the pr-Lce of oil, intrü.di.ng at +he end of 1973~W3s much moz-ebrui;: the increases observed in CO~S~~Br p~ice levels in 1974. and j.ts cons equences nu.ch deeper J as a r-osu.l t cf its mechan i ca.l e:ffect i) aLJl); the d.i.r-ecb il:icre:rsed P\'"\OE, er' encrgy aocou...n+s foX' a qu'1rt er 0 ~ even a thü'd of

the inoreases~-~ observed in Cor,0~~$r price levels in 1974. (1) in termes of input - output ana13'Si:..

(1) 511 termes of' input - otrtput ana1;y-s:L ..

14 / 140 20/10/2014 - 8 - II/675/3/74-E fin.

At the start of 19751 there was- 8 every - reason to believeII/675/3/74-E that thefin. majority of inrla'tionary factors, aswe1 I as .the pre::mures on dellWJld a.'1.d egogenaus ..~ Il.t the startfe.etors of s:wh1975t asthere the iUGreaGcd was every cost r-eason of"1;0 ra"Tbelieve mat''3rial.s that a.nd the en8rg'J, majori ty had. of tÜsappeared inrlaf;ionarybut onefactors, should as not.tcel overlookL as .the the pr-easur-es need for on sufficient demand aridiJime egogenousto elapse for these fe.i,;,l;ors ei~'fectss.ioh as tothe haveLncreac completeI;)' ed cast workedof r aw throu.gh.mater-i al.sTh(~ and pressureen0rgJ"f ofhad. wageciss..ppeared costs ho\vever " buf one remainedshculd not strong overlook al tho-ùchthe need the situation for suf'fici8~t va.ries' "i;imegreatlyto el.apsfrome one for country·theCJe to another" ef:f.'ects Into thesehave cornp oirçumatancE'sLet eLy workad one fhr-ough, cOl:ld eJÇ;8ct Th(~pr-esaur-e :." slo.dngof oflvage inflationaosts however in most of the r-ema.i.nedcoun'i:riesstreng al1;}w.1ch wi thou.t thebeing s i tuat ê,blt:i on'tovar-i.es hope thatgr-eat itLy wouldhorn beone verycountsignificant. ry to ano'therThe , rate In +heaeof cäz-cumc infl.ationtance-s established one oonLd ise.X:)90t:\ too stroagi3lo~dng for of behaviour inflation tb:i.n changemost fromof theone day to couzri r-i.esthei'v'ithcut next. being ab l e ·to hope that it woul d be verysignif'icant. The rate

of infi.ationCC:ltinuingestablished to fiJ1ghtis too inflation s"tro.lg rema:'...ns,for behaviour how8ver,to ohange essential from inone theday Community.'1;0 the next , 'This fi.cilt is sometimes ma.de difficultby the complexity of those si tua.t.ion in GCltimüngtheto Mem~erfinght statesinflation and theirr-emazne,veryhowever-, different esaorrt positions i.al, inin01usdingthe Oommuntty, in inqustrial " 'Ids fieo:trel~ti0ns.is sometimes In ef~eot,rnade dift'icul some co~mtriest by the such compl as exf G~rmanyty cf' t whichhcae si hadtua..tion appliedin the brakG3 the Mambersu:tficien~ly states and early their during ve'J'Y differEm:t .the expa..'1.sionarypositions phaseinolusdtng possess in aninqustrial advantage With respw.,,'~: re1~~i0ns.to -theInprice effect, stabil:'some co~tries ty objective. such Nevertheless as Germany which fit is had pr8sently applied the a matter.lr~:8~ of sim-üJ.~- sut:ficien~ly-t,meouslyear Iy figl1-tirlgdur-ing thG inflationaryexpans i onar-y pressttresrphase possess t11.rough an 2.1: advant di:fferentage wi degrees,th respo,yi: and 1;0 the prieeagainststability a too mar~~edobjective. slowingNeverthel.eas down hl the , it eoonomj.C"is pr"lsently activit~'a matter accompa.'1iedof sim'l.ii.=- by growing t2-l1.eousl~'unemploymeutefigl1"ting inflational'y pr-easur ea, tl1..rough 2.t dif'terent degrces, and against 2.a taoY.n~~~l2~~11tmal'~~edslowing down :i.:{~ the economi,c aeti vi t~r accompani.ed by growing unemploJ'!llent~ At the end of 1974, the Community had about three ahd a half million unemployed;

when rela.ted -to 1:1103 act.ive population this represents a rai;'3 of 3.3 ~~, a figure At the endnever of before1974; the attainedCommunity sinoehad the about creal;ion three of~~d the a Community. half million In unemployed; some countries when reh.tedthe proportionto t.11.a ac+'ive :)f une:nployedpopuf atnonin ihis the r-epr-esent.\lorking populat:'"on s a 1'ai;e of has303 at1b, thata figure time exceeded tt. nover- bef'or-e,5 % (inat"tained Italy)ai.nce and eventhe reac~edcr-eat i.on8 of% (in the Ireland) Community. whileIn same 01her countries countries experience~ the pr-opor-ta prob18mi on ~f onune:nployeda smaller in scaletho ~'JOrking i.e. 3 topopul 4 % atd (in on France~has at thatGermany timeand exceeded the Unit.ed ( ,5 % (in nngdom)Italy) and.(1)CVGn reac~ed 8 % (in Ireland) while o1her cowltries experienc~ a pr obl.emInon normal a smaller times scale without i.e~ doubt3 to such4 % a(ir~ solution F.;,'&l'1Ce~ wouldGermany call and for the restimulatingUnit.ed the

K!.ngdom)eoonomies0 ( 1) by aggreg~te demand measures. In the aotual situation this evaluation In normalmU€:,ttimes howeyer \~thout be tempered. doubt such Stimulation a solution mustwould havecall mo:'efor 'emphasize restimulating on investments the and eoonomiesshould.by aggreg~te be more pro~0lmceddemand measures. in the In countries the aotu~lwith situationa balance thisof paymentsevalu~tionsurplus. ~l~t howeverThe J.f'i'ioi be tempered. t countr1.es Stimulation shoul(l take must the havG necessa.ry mo~e 'emphasize measures on to investments adapt their and production,,, shoulJ. bcstructtlY'O mo~e Dro~olmced to thG n,:,w in demandsthe countriesoi'the with oil producing a balance countries. of payments surplus.

The tl,Atiai~~~:gt courrtr-ies toshoul the d forecasts take the necessary made by the meaaur-es services to of adapt the thGir Commission pr oduct f?ri on.,1975 ~ (arrJuaJ. average) f theJ'J'e will oe a slow decrease in the total u..'>1~~D~{~lie1'lt structaro tora.te+ho :.nn,:;w rela;t.i.cTIdemands to of' the the position oil producing in Decerribercoun+r-Lea, 1974 (Ireland 7 ,5%, I'i~aly 3,9 % ~~~~~~ andto the the ot.h6T'forecastscountriesmade aroDJldby the3%). services of the Commission for 1975 (arrJnal average)! the~e will be a slow deorease in the iotal ~~~mD~/~~ent

rat,e in relEi;ti.c:n to the posl täon in Decerscer- 1974 (Ireland. 7,5%, IWa,ly 3t9 % a.nd the othE.!' countries az-ound 3%).

15 / 140 20/10/2014J - 9 - II/675/3/74-E Otherwise, it s;lOuld be emphasized that at 'the prosent stage, uneqÙoYtl1Cnt in part can be exp::'ained 'by structu.ral phCn0!11en'l. Changes in the produ.ction equipmen t have b;~c()me jne\riiiable- 9 principally - L-l on3.er to respond t.o the Otherwise,118'i1st;r"Q,otu~:ei t shou'Id be ofemphuca (',sme,ndzed inù.c:.cedthai byat the·the Ó.ifferentpz-cserrt stage, hi erè",rchyuneorpof Loymerrt prices (par- in part-!;icularly can be E',xp::'.;:..ined b;y the inorear:;eby ztructuralin petroleumphOn0:21e::I.'1. prices)Changes andin bythe Chéèl'1gesp::.'oduction in the world

~ equd pmendistrib~~io~t halle bccome of jnevi"tahle wealth. Takingprincipally into acoountL'L oj,~d_ertheto frictions,r-espcnd t0 +'hetheproèable result,

llP.'il s-!;r'J.ctu:?'edt:LY'ingtheof r~_'zme:ild next fewütc!x:.ced year;sby rillthe bedi f'f'er-errt a slowerhi gro'\oitherco..rchJ andr of aprio8s higher(?a.r- and Jonger ti~'ul[trlyla(~tingb;y the struGtur'1l äncr-eac e in unem;.loyment.pe tz-o'l eum pr l1ni cea active)apd labourby cllE!,l'lges IDê.o:tketinpolicy the worLdvd}} tllerefore distrih;.tio~become of' thatwealth. much'raking more sig,nifican-t9into accourrt including·the fricticns, occupational+he p.\~ocn.ble retrainingr-esul assistancet , . duri.ng thofornext '\olOrkE.rsto;gether,fCi'l years •.ri Tl eventu.ally,be a. slower ,vith gro'V-rth 3ppropriat3and Ci. higher changesand inJ ongei' tho wace structu.rGu lai,ting Suchstructurü actions unempl ...lOuldoyment also , tend1m acti to increaseve Labcurthemc;,rket flcxibilipc'l i cyty HiJ.l of -thE: t11erefore eçonomies Hi th bocome thatrespeot much tomore resi;ruC'turingsig:'7lificcnt~ reqï::.irements. inoluding occupat i onak :re+'l'i:Ll.n.ia.gass i.s bance

for \'lOI'k~{'stogether, everrbual.l y, wi th 8pprop:riato changes in tho T,;a[,'e structur0ü e of Péprments 3. ~...';;;~;,>.:I~..;L;..g;,-::.;s-""~~~~"'Jo...:.,'[J~Be?o.no. . D'-'7:'iaits Such act i ons woul.d also tend to increase t1'1e flc,Xibili ty of thE, economi es Ni th The !'0tu:rn to satisfaotor;r equilibrium in the o'Jxrent balance of J:.é',yments -respect to rcstructuring re~ir(Jffients. and tha:t :lll a:c, orderly manner, is rightly tÙe vi tal question for the pre- servaÜon of the Communi-I;;y.

Th8 r..:turnTl1e to mé'ßsivesa:ci;::;:faotoy;, transferequilibrium of liquidity in to the the b'J.rrent oH producingbal.ance of countries fe,yments has Bhaken and t!l?,-(;the ili fl'agilean orderly stxuctnremanuer-, ofis the rightly il1ternati'Jl1altüe vi ta.l monetaryques't i on systemfoJ,' the ó,nd pre- oh,.mged the aervat Lon of the Commum -!;Y. g'-'0!;l é:v~"1.'_oä.is-t:::'i'butioa of financial resources.

'r::1G maesrráei ve deterio:r.ati01"J. transfer of liquidlty 0:1:'the t8rms to the of oiI tx'adepr-oduci.ng to tho benefitcourrbr-i es of h2"Sahaken the oil producing the ±':::'agilc s truct.ur e cf the Lrrternat i ona'l monetar y sys+em and changsd t.he oO\mtri(')3 implies that the Commv..~J..i..ty should. l)ro.:;re::sively releoce the internal resso':.Yces required to oompensate for this det8rioration by aè.dHional o:x:ports.

if[J.G ueteriotatior, o.f tbo t erms of irade to tho benef i t of' the ci L producing In f'2-Tt? the oil pl'odu.cing countries are not in a posi ~'iol1 to i'YlIEGdiatel;y' . ]' OOL:h.t:;:'l(~:'I lilltJ. .a es that the Comr:n;..:~i:ty should :wo.:;recsively releC28 the in"tm-!}3.1 tranRfo:>'m all their addi t.ional ga7,ns into more impurts. For SeVC'I'Ci1 years the3' reSS0r;.rcesvriE,required IV1Vea non.,.,absol'bed to compensato .surplus, f'or this p3.Ttdeteriorationof \"1hi(;hwillby aC.di f:..ndt5.orw.l i T8 e,-1Ü')8,lel'lt oxpor-ts , in -In furt ~thethe presentoil P~'o'~~ucing ConmrJ.:,1itycoun+r-i.es defi.cit8. are not in a posi +i cn to :i.:Y!1llGdiatel;:r tranp.fo:'ffi all their addi tional ga~.ns into mor-o impurts. For 8eV(~rri1 year-s t1:\ey In 1974~ the e~t3rhal deficit of good a~d servicès o~ the C~mm;lnity' reached about vaL. have a nO:tl.,.,aoS01'[)edsurphls, P3.T·t of whie;h will f:"nd i::8 enÜ";e.len.t in ~ 131°00 millicn to ~ 14,000 million. If one ce~ hope for a progressive dimi- the presont Cornrmmä ty dof'j.oitG. , nu"iion it '\o:ill not be before some years have passed -that an equilibrium position

In 19741'\Villthe 'oeex+crnal found.d(~:!:.~'::'Qitofgocd From now U.lltn 1978 and aervithe ,",ocumulatedces or the C::'J!nJml:::l.it::r debt oZ ther<.'ached Cornmuniaboutty could

~ 131°00 mi:licn to t 14,000 million. If olle ce~ hope for a pro€ressive dimi- nu ti on it t-:ill not be before some years have pasa ed that an equilibrium position :ó../oo. tüll be f'ound, Fr-om rON urrt i.L 1978 the ,-',ocumulated debt ot: thc GOr!1"i1Ull1ty coul d

.:>

16 / 140 20/10/2014 10 - II/57 5/3 t: !~.~-E

(1) clearl.y exceed 50,000 million and e\ren :reach 100,000 million .This 'I

clearlydollars) exoeed 'I Oernw.ny50,000 million to a very and noticeLol.e wen reach deficit ~ 100,000 fo::- million It.::.ly (&.~out (1) .This11 biEion) t phonemenonthe is U.K. more (about vIOrrying 13 billion) gi ven the and vcry Frro1ce different (about5 si tuat:i.ons billion). bctwcen Tnese co~~tries one "'" member countryalone haveand thusano ther registered , :f'rom a a cons aà:ficii der-ab.l t ine the aurp orderIus for(about of 29,00014 mi1l5.on mil.lio:1 in (2) 'I e: dollars)1974. Oermany to a very no't i cez.b.Le defici t i'o:~~It;).ly (B.~cut 11 billion)? the 5 TnesG co~~trics U.K.In (about the~F.' 13 c:i.rot!illstances, billion) and there France is (about a dangerbillion). that countries expe:?Lencing the a'l one have thus registered a dC,:fioi t in the order of ~ 29,000 mi.Ll.Lon in greatest difficulty might be te..ûptcd to adopt restrictive commercial measures 1974.(2) I' or be forced to competitiY0 depreciations creating a chaotic situation in the

In iihes"';excha,";1g~ oj.!'Cl.:';nstances marketsJ there and causingi8 a dange!' a crisis that of coun+r the customsi es experd union. encfng the greatcs·t 6:i.'.f.'icuHy mig!1t be te.'TIptod to adopt rest:r.ictive commercial measur-ea One of' the problems which Europe must try to avoid is the creation of or be f'or ced to oompet Lt i vo depr-ec i at Lons creaiing a chaotic situation in the exoessing tendons b6"tFE'en countries with surpluses and those with deficits exohange ffi9.rkets and oauaLng a crisis of thc oust oms unä on, in their current balance of paJ~ents. In some cases setting up aoherent ~. ~");r One of theandproblems ordC'r fL~..?.:tcingwhioh Europe sch3mesmurrt H'ouldtry seemto avoid inen is table. the cr-eat These f.on problemsof cannot. be

excese ingsol ter:sions v\~d ~rithinbl':>"t::F0en the C.)ITL"'Jt1nityalana,count r i es ~Jith sur-pIus but ines the and widor these contexttvith def'icits includiJ;lg 'i:;l1e in thei!'strn~ogy curr-entadopted ba.l ance by of the paymen+s three ,grcups In sameof caaes countries setting concerned: up Goherent the principal ";:·;:r and orde::;:,petroleumfÜ~..;'.;;:cing producers?echcmas wou1d indust~ia1ised s eem incvi countriesta.1:Jle. These and, problems devë])pingcountries.cannof be scl V,'3d trithin the C)IIJ:ltmity al ona, but in the •.ridcr cont ext incl udi:t:lg '(;11e stnrt8g;y adop t ed by the three gr cups or countries concennedr the principal ...... - petroleum pr oducez-a, industrialised countries and, deveJ )ping courrbrdcs , --~ h_.O

--'"~~ (lL\£:J~~,; B£''P'ort-to--t.he C-:uncil wd the CCD"..!llission on the Community's eC0noird.c situa.tion a.n.d.rn.ed.:i.:Lur1o-term. ;Yl.tlook, document by the EuropGan . Comrnnities (&:or:c::~jc Policy CO!Jlli:i,.:ttee) no II/562/74 ai' 18 Dec.anib2r 1974,. ,36 &11Q~;)2.J.owi:nf; pages? esp~:;ciaEy pp. 50--53. T'.1.Gfigures calcula:t.ed _ •••!c.It'~ p. ~.. in that 'sour~o refer 'to' the y'or.;.rInS. (l.L~.2J!.!~:B0~ort- to--the Ccuncd L and the CCIECllssion on the Gomm:unity's eCGr.oc;:Lc:(2).estiruatess i.tue.t i.on of'and.,medi1.lIIl'-oterm. the servi0es ofcut thel.ook, Commission.documerrt by the Europ::.an ·CoIl'J:t;1.mities (EcOVtC.':'..ic :Pol:cy CO!.;'J;i:i,.:ttea) no I1/562/74 of 18 December 1974 •. p. ,36 al;~d~:)".J.owing·pages? esp-aciaEy pp , 50-5.3. Tb.Gfjgures balcula:t.ed in that ·SOd.:r:JC refer 'to' the ye,~r 1973. (2) ..es tdrnat ea cf the aervi ces of the Commlss i on,

1::.

17 / 140 20/10/2014J -11 II/675/3/74-E fin. III. A SHORT-TERM PROGRllÎ<'I1~ 7 A number of the formul~tedrecoa~endationsar~ still directed to -11 fin. national govcrl1Llents. In effect,oxcept for commercialII/67S/3/74-E matters, Europe SHORT-TERM PROGRAl\1I.IE IrI. A F,., has not achi'3ve,d'sufficient_ integration of ec;momic policies to be able ;~. :. A nuraberto cf talkthe of f'ormul1.tec'-recoI'L'nendations a common economic polioy..ar Nevertheless,e still dil'ected the to rôle of the national Co~~unitygovez-nmenüs, and itsIn eff'ect, instit~tionsexoepf couldfor oommer-oi.al. be deçis~ve.matters, Pirst of Europo all by assu- . . has not r~ngachi3ved the necess~y 'sufficierit coherenceintegration of n~tional of economi policy, c policies follow~dtobe by able the initiation of various actions, the effectiveness of v/hich requires to talk of a common economic polioy. Nevertheless, th~ ro1e of"'hat the they be conducted Co~~ity atand a European its instit~tions lovel. To couldthis effect be dec~s~ve. the groupprcpaaas First of all theby assu- croation or the r~ng thedovelopnentnecess'lI'Y coher-enoe spccific1.11y ' of nc:..tion?.l of CO!:1lJ1urlityinstruments.polioy, f'olLowed by tho initiation

of var-i ous~is3..ctions," short termthc programme ef'fectivenessof f~rms aitlhich completerequires whole: ""hat eachthey partbcconducted only has a real at a EuropeanmeQning level. i~ relation Ta this to effect the whole. the group It would prnpoaas thereforethe creation not be sensible01' thc to of Conmundty .devclopncnttreat specific'1.11ysaine elements separately.instruments. The application of the proposals can va,,:,y from ~is ahortone ter~ country progr~e to another. f'~rms a completc whole: each part only has areal

mexning A.in Therelation p,Qnor2lto linestho whole. It would thereforo not be sensible to ~~~~: -:Y treat some elements ·scparately. The ~pplication of the 9roposals can va~y trom 1. one oountry!n~e~t~o~t_s~P2o::t_to another.

It is im:;>ort.:mtto encQuru,ge prod:Q.chvG invéstment in such a vlay as to

.facilitde industrb.l restructuring, to develop new squrcos of energy, ,?.nd

to increase, in general, producti ve,c3.paci ty to meet an increase in external It is i:1:)ort.:mtdemand. to GnCQUTL',geprodQ.ctivG investmo.nt in such a way as to

tacilit~te Fiscalindustri~l measures rcstructuring, will bo neoessaryto develop in certainnew S9uraes oountriès of but,energy, above,~d all, it is

to inarease,i~portant in general, ~h~t the productive·c1.pacity rste of profit in real to maat terms ~ ce~ses increase to in decline external and pro- demand, gressively re-esta.blishes itself at a level adequate ~o cover the real rate , . \ -Fiscal me~suresof interestwillandbo théncoessaryinvestmentin ccrtain risk. This countries is thebut,·abovc conditionall, for enterprises it is i~portanttothat be able the to rste finance of profitand. willingin real~o terms undertakê ce~ses the to deoline investments and pro- which will be . . grcssivelynGcess~ry re-esta.blishos in the next itselfat few years. a level adequate to cover the real rate . , of interestToo fast and thean increase investment in risk.wages Thisand s~laries' is thc condition could co~promise for enterprises this ob~ecti~e to be ahl,e~mdto lead;füiance inev.itablyand, willing to an itrcroaset.o under-take in unemployment.the ;investments In these whioh condition's, will be nocessaryitin is th~next ncecs3.rythat few years. during 1975 real incomes per.head (including social Tao fa,stsecur'ity an increase benefits)in \"lagesincreaseand ac.Lar-i moreea SlO'illy coul dthancompr-omi increasesao thisin ob~Slcti'veproductivity and even

.. and Lead'in'certainine'tdtably casesto an thatiucraasethey should in unemplo;yment. be kept atIn theirthese presentcondä bd level, ons , to take it i8 nae8s~ryaccountthat of theduring losses1975 inreal the terDs incomes of per, trade headdue (including in particular 80cial to the rise ::.- S0ClU"i tyinbonof't oil prices.ts) tncr-ease more slowly than Inor-eaaoa in productivi ty and even 'in'certain aases that they should be kGpt at their prcsent level, to t~e aocount of the lossos in the teros cf trado due in particular to the rise ...1... in oil prices. .,../...

18 / 140 20/10/2014 f..;';~~).;."~ .,. !-.~" '<~. ~." :,"::\", ."'~.... 12 ~ II~675/3/14.J.FJ, fin · . u .

This result cannot be obtained unless the gover~~ents and the social partners attempt to conduct their disnussions•.•.1'2 in real terms.II/.67$/3/14 One way to ..• resolveTJlrin ' this . ;. ~ ". situation would be to index salariea, legally or in fact,. to~' ~ the cost of living.

. . This Nevertheless,t be indexation obt~in€ld isess nót ingovernnent.a itself a me~s of combattingS oct at inflat1on. resul cannot un'l the. .and the partners attenpt Itio mustconduci be accompanied iheir disnusaions 'by restrictivein realtorms.Ono economic and way monetary to resolve policies.this In any i' situationcase would the be indexation to index schemes3.1ariea, ~houldlegJ..lly.or exclude in that fact,' part to of the thecost costof increaseliving. which Nevertholess,is caused indoxation by the increase is not in in itael! indireot am~3na taxesofcombatting and the riseinflat1on. iu import prices. It ~ust Ifbe the accompanied'by fight againstrcstriotive inflationeoonomic is:suo~essful,and monetary purchasing policies. powerIn havingany been oase themaintained indaxation by scheme the indexation qhould excludc clauses, that the p~t salary of theand cast ~vage increaseearners whioh could be is oausedcontentby thewith inorease lowerin realindireot wnge increases. taxcs and Itthc wouldrise noin longerimport be prioos. justified to wish

If .'the fightto anticipateagainst inflation the inflation is:su6üessfUl, rate in wage purchasing bargaining. power On having the oth0r bean h3.."ldindexation maintainedcouldby provethe indexationclausesi ~o be injurious iftho it leadss~lary toand increasesv~ge e~nerS.în real. couldt-lages'be and salaries content whichwith lower exoeed real thel~ge productivityincreases. gains. It would It would no longer result be in justified unemplo~ùent, to wish as in the ... to antic:ipatecase where,the inflation with oollectiverate in agreementswage b::.rgaining. without On indexation, the othJr h3.I1d the anticipatedindex.n.tion rate could profove infl~tionto be injurious exceeds if thati t ofLeads theto realisedincreases rate."än reC11. "m,ges' and salaries , , " ~hich exoeed the productivity gains. It would rcsultin unemployment, as ih the Tb ensure an equitable division of sacrifices, a modification in the distribution oase wherooff income~th collectivemust be sought agreements throughwithout the useindexation, of fisca.lmeasures, the anticipated except rate in the countries of infl~tionwhere exceeds direct taxes that of are the already realised high rate. or even exoessive. .This division eoulH be aohie-

Tb ausureved an for equitable exa.mple divisionby inoreasingof sacrifioes, the burdens a modification on the inoOIJcs in:a'nd thecapi distributiontè11 gains of the of incomewell-off must be or sought by taokling'the through the problem usa of of fisonl tax evasion.measurcs, exoept in thc countries where dircct taxes are already high or even excessive.This divisior. coulli be ~chie- The êounterpart to this social pact must. be an increase in the allowanoes to ved for sxamp.l e by increasing tho burdens on tho incoi:1cs"-andcapi tal gatns of the wage-earners in the C9.seof ~em::>:t.oymentj .vlherevcr these allm..rllnccs 3.I'e fixed weIl-offat or.by too Iowataokling'the level, andproblem iI1.creasedof t~ effortsevasion. to improve occupational training and The counterpartfacilitate to employment this soelal adapta~ion.pact must, be an increase in the allowances to

. al.Lowanccs wago-earncrsAt a moment in the whencsae inflatio~of unem:Jloyment throughj Hhercvcr demand andthos

.a L'i •• /~ ••

19 / 140 20/10/2014 - 13 - II/615/3/r 4-Efin

could endanger ~ deceleration of pricos and .~ adjustment of behaviour to a . ~'ii~ation of gre3.ter price stability. - 13 - II/675/3/74-E fin 2. Promotin~ FïnancialSavin~ . i.. cou1d endanger ~ deceleration- cf priccs. and ~ adjust~ent of behaviour to a The acceleration of inflation has causedacontinued,decline in the capital ~'Üüation cf gr~ater pr-Lce stabiE ty. .markets \-rhich,has, in particu13.r, been'reflected in ashor-tening of lending 2. Pronoting Financii':Ü.Saving , periods and, after,~ . by negative real interest rates despite the sometimes The ttccelerationconsiderable of infl~tion increase inhas nominaleaused rates.a'oontinued dec1ine in the 'capita1

in i.cul.ar-, -shor-t entng 01' lending .marketsIn Nhich.has, almost all countries,par-t thisdevelppmentbeen reflected in hasa led to a flight into real periods assets,and,·after, purchasesby negative of buildings,real interest gold, etc.rates despite the sometimes considerable inorease in nominal rates. In these conditions it seems appropriate to resort to the experiment of . In almostissuingall countrie~, indexed public this,develppment loans and to has encourage led to a similar flight action into real by the private asaets, of' - sector.purehases Such actionbuildings, couldgold, raiseete. problems in many areas including that of In these taxationconditions butit nevertheless seens appropriate it implies to res the ort followingto the experimont advantages: of . issu~ng indexed puhlie loans ·~d to eneourage similar aotion by the private , .'It would'put an end to. the uncertainty \'lhichat the momentplagu.'es the na- sector. Suchtionalaction andcould interndionalraise problems capitalin markets, mallY areas notablyincluding throughthat the of lengthening but it the f'ollowing taxation -of maturityneve~theless dates. implies adv,~tages:

- It tvould'put- Providedan end thatto anthc effectiveuncerb.inty stabilisation "lhieh a.t the policy momentplagu:es is conductedthe duringna- the' tional andnextinterndional few yéars, thecapital publicmarkets, authoritiesnotably couldthrough borrowtho onlengthening significantly more .af ~aturitydates.advantageous ,terms.

- ProvidedThe'priv:1te thai an effectivesector would stabilisatiou be protectedpolicy age.irtsti8 'conduoted a crisis durlng of overindebted- the nezt few'ness.years, Intho thepublic absenceofindeiätionauttorities could inborrow as faron assignificantly commitments douldbemore undér- advantageous ,terms. , , . t~ken in a perroi of inflation at relatively highg nohiinal rates óf interest, ..The "priv3.ttl.the progressive:.:.realisationsector would be pr-ot'ec+ed of agairtst greater astabili crisisty of ofoverindebted- pri'ces would mean .an ness. Inequivalentthe abscnceof rise in.r.ealinterestinde±ätion in as rates.' far QS Oncommitmonts the çWz:rtr:i!.ryindexationdöuldbe under-clauses t,iken in,would a perioi st'1bilizerealüf inflation interest 'at 'relatively rates by higng adjustingnominal ~omin~1.l rates ratel:?6f inter~st, downwards.. the progressive:,·reo..lisation of grea:ter st~bili ty of' pri':ces. would raean .an equivalent rise in.r.ealintGrest r at ea,.'On tAo 9o:Qtr!~ryiridexation clauses. ,.~./..." would stJ.bilize real intorest rates by ad.jus't ing nominal ra.:teE:!downwards•.

~ ,., . ./...

20 / 140 20/10/2014 -14.- II/675/3/74-E fin.

Cert3.inly, indexation does not constitute the only wa.y of stinub.ting long-terra sa.vings of private households.- 14.- It could be usefulII/675/3/74-E to earm3i-k a partfine of the profi te for wage and salary earners in the form O,f'.dis.tri.pu~i01?- o,t' .shares Cert~inly,reserved index~tion for employees. d00e not oonstitute In certainthe countries onl] way such of a stiQul~ting policy would:help long-term union ~ savings understandingof private households. of necessary It could salary be adjustments useful to earma.rk and wou~d apart constitute of thc the beginning profi ts offor widerwa.ge c3.pitalownership.in arid saln.ry earners in countrie~ thc form whereo,f, ,dis.tl'i.put.io~ it does notqf.shares yet exist. reserved for employees. In oertain countries such a policy would,help union 3. Regional ~olic~ understanding of necessary salo.ry adjustments and would consti tute the be:ginning Actions oalculated to reduoe inflation and to inorease employment c~ot cf wider 93pital ownership.in oountr~e~ where it dces not yet oxist. successfully be undertaken in the absence of adequato regional and structural 3. Regional measures.polie:!

ActionsRegional oaloulated disparities to reduce in inflation the Co~~.nity, and to increase in effect, employment have renainedC':\ll!lot significant be in absence of .... suocessfullyeven thoughunderta.ken they have beenthe slightly reducedadequato during regional recent and years structura.l in some measures.Member States. As an indi ca.t ion, the gaps between the richest and poorest Regionalregions disparities in the in Community the Co~~nity, have.remained in effect, in thehave q~derrenained of 1 significant to 5 in terms of even thoughper capital they have income boen orslightly value added. rcduced In during some regions reoent yearsit isin thesome .rateof uner.~loy- Member States.ment ëtnd~1s under-employment an indication, the which gaps constitutebetween the theriehest m3.in preoccupation,and poorest .the Mezzo- regions giornoin tho and Community Ireland have.r0mained oxperiencing in the the most o~dersevere cf 1problems. to 5 in termsThese of disparities per eapitalconsti incone tute a or permanent value addad. constraint In some on regions macro-economicit i8 ther~toof regulationunen~loy- p'olicy. ment and under-employment which constitute the ID3.inpreoccupation, .the r~ezzo- The reasons explaining the grmvth of industrial concentration arEj,many. Thus, giorno and Ireland Oxperiencing the most severe problems. These disparitics in the backward regions the factor inoomes are too high.in relations to the , . constitute1 evelofprod~ct a permanent eonstro.int i vi ty .Cons on ey,"U.>3ntry, macro-ccono;nlcregulation the profitabi lityof' policy. investment and therefore,

The reasonS.the attractiveness e.xpln.ining the ofgrmvth theseof regions industrial for potentialconcerrtr-at investors,Lon ar-e ,many, suffer.~USf in the b~c~Jard regions the faotor inoomes are too high.in relations to thc Other. reasons, lie in the disadvantages these regions,. suffer in the field of ~ LevnL of' pr-oduc't i.väty. Conseq,""G:;mtly, the profit ability of' investment and +her-ef'or e, infrastructure of inher,ent agricuI t~al conditions ,a.ndwh,ere there is a need the attractivanessfor sub~titutingof these new regions industries for for potential declining investors, industries. sutfer.Fïnally, the Member Other reasons,Stateslio whereinthe the regionaldis~dvantages problems these are regions most serioussuffer findin tho themselvesiield cf handicapped infrastructurewhen undèrta:kingof' Lnher-errt actionsagrieul h~vingt~al regionalconditions effeotsand w1:l,ere+her-e which would Ls contribute aneed to th for sub~titutingreestablishment new indul?triesof balanced:for structures.declining industries. Such is the Finally, case for tho social Member security States wherepayments thcand regionalfaoilitiesproblems forare oocupational most serious training. find themsehres handicapped when undertaking actions huving regional effeots which would contributo to th ~ reestablishment o~ balanced structures. Such is the oase for social seourity .../... payments and facilities for o ocup at i on al tr~ining. -- .../...

21 / 140 20/10/2014 15'- II/675/3/74-E fin.

All these reasons, which are reflected i~,the actu~lregional structure, have led to a concentration of15~- wealth to the detri~entII/675/3/74-E of cert~infine peri- phero.l regions.

All thesoThe reasons, need for which a largearo scalerGfleeted regionalil;1,the policyactU9.1regio:qn,1 àt the Community structure, levol is, there- Iod of to of havo foro,to ~ urgent. coneentr~tion This policywealth must bethc conceived detri~entas morecert~in than a peri- Regional Develop- pher-c.I regions. ment FUnd, as a package of incC'.ntives modulating market mechanisms, parti- The needcularly,those for a largo scale in the regional oapital-markets policy at in the order Community to permit levol desirable is, there- capital fore, urgent.movements. This For poliey this purpose roust. be. particular conceived aa importance morethan Hould a Regional have to Develop- be accorded to mGnt FUnd,theas activitiesa package of of theineontives Europeanmodulating Investoent market Bank. ~äthout meohani.sms, goingparti- into detail, cularly,thos~the group in the considers capital-marketsit important i~ order that this to permit Ba...'1k's desirable range of capital manoeuvre should mö;feoents.Forbe enlargedthis purpoaa especiallypar-t i withcul ar respectimportance to interestuoul d have ratesto assistance.be accorded to thc ectivities of tho European Invest::!8nt Bank. Hithaut going into .detaiL, ~1e group t~

'Communi tytheinstrUJ.u~nts FUnd givos-(trnnsf'ers to the creationof"orientations of regionalU' developmentfunds "fr~~FEoGA progr~~es. to the TheEuropean establish- Regional mentDevel.opment of theseFund pl~~s and mustthe benarrower effected bison rapidlybetween in order this that latter a listfund ofand community the Europeanprior~ties Investment ,for Eank)p13.nned - andafaction theis ioportancegu.ar3.Uteed. that the·project taestablish the Fund giV8S to the cren.tion of regional developmcnt pr-ogr-amraca , The establish- It is also clear that certain differences in relative factor incomes will remain these ment of as longpl~~s as produétivity must be effected in backward rapidly regions in order remains that a belöw list that of community in the more priortties ,for pl~Gd action 1S guar~teed. fù.voured onos. It La also ct ear that oertain differences in relative factor tncomes wiIi" remain In general it shouldbe.tndicd.ted thàt the range of recörrtllended instruments regions as 10ng.in as Chapterproductivity·inIV is inspired,backwnrd amongst otherremains things, below by that the in Wish the that more reglonal fnvoured onos. ~ aspects should be taken into consideration. In gener-a.l i t shou.J.dbe:tndieiited thit the range cf r-eccmmended instruments 4. Participation of the Social Partners in the-c1e[Ji'm. of Community Policy in Chapter IV i8 inspiredt amongst other things,by the Wish that regio~~l The proposed measures require the support of socio.l par~ners. The essential aspects should be taken into consideration. part of the dialogue would have to t~:e place within eaoh of the member 4. Partiebation of the Soola1 Partners in the'd.esi~:m of Community PolicJ' countries.ALl Nevertheless, in order to promote... convergencec •• of political approaches T.he proposedand so~easureS that social require partners the support better of appreciate sooi~1 pan~ners. the partn~rshipTbc essential characteristic par-t of' ofthe thed.i a.Logue enterprise would and have learn to t~:a fromplaca the experienoeswi thin eaoh of cf other the rnember couniries. countries.~ Nevertheless, in order to promote convergence of political approaches and so that social partners better appreciate tha partn~rship characteristic . . ./. . . cf~, the enterprisc and learn trom the eKperiences cf other countries •

.../." .

22 / 140 20/10/2014 -, ... 16 -:- II/675/3/74-E fin... This consultation should guara.ntee in a litni ted framework a regular exohSLIlge of viel~ on Community economic policy~ 16 ~ II/675/3/74-E fin..• Participants in this consultation coUld be ,~, '!his eonsul taUon should guar ant ee in a linJ,itsd framcwork'\ a regu12.r exchange cf viei~-onthe Co~~unity Presidentseconomic or general policy~ secretaries of central trade union orb~isations. .' The secretary of the Europe3n Trade Union Confeder~tion would be an ex officio Participants in this con8ult~tion could be : member; - thc Presidents or gsneral sccretaries of central trade union orb~isations. ... the presidentsof centralEmployers' Associations of Member sta~es.The The secretary of the European TradeUnien Confeder3tion would be an e~ orfieio president of' œifICE would be of right a member lif he is not already qualified member j as a president of a national organisation. - the pr-eai.derrts cf central IDnployers' ll..Ssociaiiionsof 11er.1ber Sta1,:es.· The Public authorities would be represented by the Commission which would keep president, of UUICEwould be of' right a member if he La not already qualified national Governments regularly informed. as apresident of a national organisation. . As regard3 procedural questions en impQrtant" task devolves upon the Commission . Publie authorities would be rcpresented by thc Commission whioh would keep which could :

I national Governments regulnrly informed. - provide for the organisation of regular meetings - if possible at. least once As regarrn eachproceduralquarterquestions of a yea~ß1'1 important task devoLvea upon the CamE1ission which coul.d.. provide : the secDetariat,

- provide guidefor the discussions organisation by meansof regular of itsmeEltings Presidontor - if possible its Memberat, in lC,'lst charge. once of . each quarteconomicer cf a affairs. yeaJ; •..provide·the seclteta.riat , In order to create a climate of confidence all.c~~bersome formality should by charge. - guidebe discussions avoided, formeans ex~~ple,of its officialPresident minutes, .or its press Member releases,in etc..~.af . economic affairs. It i£ essential, however, to'assure rapid and fle~ible o~roulation of . all·o~~bersooe should In orderinformation to creato 'between a climate delegates ef confidenoe al'ld their respective:organisatiç>ns.form~lity be avaided, for example, official oinutes, press releases, etc ••••

It is essential, however, to-assure rapid and fl~~ible o~rculation of " Lnf'or-ma't i on ·between delegates and their reElpeotive-:orgrmisa.ti9ns. .0../...

...

23 / 140 _J 20/10/2014 ~. 17":" II/675/3!74~E fi~o

Eo:>Ii':in'1.J:'H:ial a.nd mone+.e,!'v problems ~~~"'-"'N.~~~.:c.r~~~_. ~":w:-:~;...,;1IIII

Europefs finanoial and monetary problems, caused by the energy crisis, ,~ requi:-e 1:0 be considered. in the wid.ar oontex-~ of the ohangss in the inter,- n.aticnal f'in:mcial system. The member states of the Community have identifiable Europefs i:nter8:r\:3finanoial in~1d commonwoneiary whiohproblems, oan only becaused affectivC:'lyby the energJ~protededcrisis,if ther'3 is olose r-equ.i.re coop,eration+o be cons i der hetv.Teen ed in them.the wider oorrbexf of 'the changes in the in'cer"": l:,aticnal f'in:mcial sys-r,am. Tn,e member- statez of the Community have irielttii"iable It is proposed that this oooperation should be b9.sed on (i) gaide-1ines for in ter3:rb m common ~'lhich can only be p.ffect:Lv~ly protected if ther<~ is olose l!iuropea.n internal anê externàl monetary policie:::, sl:pported ~')y (ii) the cooper-at i on heth1een them, creation of an :&G;J1a.."igCStabilisation FUnd (ESF) a..11d (iii) the i~1'~roduci;ion It 1s profopos a ed nevvthat Europthis eancooneration uni't; of aocol:.nt.should be based on (f,) gaid8-1iues for

Eu:.'lJpean internal anc cx+erne l monetary po l i.c'i ea t eq1ported :-"Y(H) +he 'I. A oom:nunity s:}rstem' for internal and external mOD.etary polrbdes ~ ------~-~- - - - - ~ - -' cr-eat i on cf an-----Rr~}J:.a..."igG--Stabilisation- - Fund (ES.F) and (iii) the i~·(·~:;:,oductioi1 ofti a new'ItB~rop8an if.? a.vJe,l1w1it establishedof acco~nt. tradition to treat exohange rates é1.!":1dmoney supp:'.y as GeparabIe policy instruments. It is a tradi t~,O!l th::d contributed. tq the oreation of the i:::,-!;ra,-E.uropean exchange rate system kno~,r;:las the Sl1.ê:J.ce~'rhe It is a mech2~ism.we.l1 established fer narrowertr2,di bon intra-Communityto treat sxchange margins :rat~sof exchange-ratevariaticDGand money supp l y as s epar-ab'lwase lmmchedpol.Lcy Lns Hithouttrumen't beings , It supportedis a tradit~.o:'1 -by a miniraum-th':l,t contributed. s~t of commitments t9 tlle for

creat:Lonmanagement(jf the i~.:-!;ra,"K'uropeGllexchange of mo~ey supply and other rate dOffi8stio sys+cm knovm polioies. as the sL',:o~ke. Ilhe mecnantsm fcr nar-r ower- intra-Communi'ty margins of' exchange-rate va.riaticl1lJ 'E'lere h~s beeil a tendenoy to undersf3timate the effect of exoh3X.ge rate poHey was Launched Hi thout being supported ty a minüHun set of commitrncnts for orr domestic monetary management. If the monetary authorities e..."1terthe boüd. management of noney supply and other domeat i,o polioies. I.'larkGt,to support th'3 price of government seou.ri ti es, additional money is T'lere h8.S. orea,t'Jd.. been a .1}.1J.1esameten1enci happensto under ifes t theima't oentrale the ef:feot b mk eu" 0:( \'::l"f3theexchange fGreignrate poHey excha.,"1ge on domesticmarket nlOn8tary to buy m9Jlagement. foreign currenoy If the to !Jonetary maintainauth.oritles a predeterminedantcr leve':. ·the oond cf ('!x,;h:::.nge r:19.rk8-t tora;!;e'.support Shortth'3 of price a fully of flexibleexohangerategovernraerrt s ecur-i t ies ,sys~;;em additionalan underlying money is relation- . cr-eatcd.e ship 'Ihe betVieensame happ internalens Lf theand centralexternalbrnk nationalmr' '':1"'8 monetç;r~rthe f"reign poLLciesexchange is thus established.. naz-kef +oThis buy simple f'or-ei gn factourrenoy should to not maintaiti be overlooked a predetermined in a..'O.yproposa.'!.Leve'L erfor(~X'3h::'Y!Gemo::'e stable intra- ra:cc', ShortEu.:':'opoa.nof a eXGhange fully flexible rat~ :':'elat:1,onsl1:i.ps> exohange rate Ansys intra-Commun:~tyt em an underlying exoha:~.ge :relation- ra.te cooperation ship between:neods internal ti) be combinedand external with anational progra.ril formonetar-y cGopsraÜonpo'Lict esonis domestio tlms E'stablühed IT.œj,etary policies. .• Tllis simpleAlthou.ghchangesinf'act shoul.d not thebe over-Looked mon"w supply in arearJ.Y inPJ'oPO~3.!. prindple for subjedmore st a..ble to controlofil'ltra-

Eu..~OPCCl_!1.excnangemon~tary authoritiesthey r-at ~ :::,elat:.onsMpsare0 ofAn oourseintr3.-Gommun:'largelytyir..fluenoedexohange r-at b;~rothere cooper-at economici on e..nd neocs topoliticalbe ccmoined decisions.w~tha prog~am for c~opsration on do~estic IT.o~et~rypoliciGs. AlthOl:.gh changcs in the money eupnLy ar e in pr-i.ncä pl e aubj eo't to cont rc'l of mOll~tar;{ authorities they are of course largely Lnf'Luenced bj- oti1er eoonorri o end eo%o.. politioal deoisions.

24 / 140 20/10/2014 ~8- II/675/3/74-E fin. A consiGt e:nt ..na.t.i~nal...mon..e'ta:r;r polioy is one in ~v}1iohthe domestic monek~.ry C;.~';'Io.At"..,.~...:'<...~,.? operations (open-market operations, redisooIDlting, or changing reserve re- quirements) and external monetary operations (buying or sellingspot .foreign . . II/675/3/74-E fin. A conei.afeXGhange, ent ..n.at.i.onalor taking ..mon.et'3.l"Y pO.3itionspolioy ini.s forwardone in ~"hioh currencythe marketsdomes t i,ctomondc~ryinfluence private ~;~~~"'.:""'!:r.~-:'<..~~7 capital(open-mark8tfIoNS) operations, eaoh in rC- operations s-IlRl,J}?.J.'.!:...ratherrediscomlting. than .2J>'pos~ or ohangingrescrveother their effects on the qu.iremerrts)national andexternal m':m3tary monetai..... base. y operut i ons ,(buying or selHng spot foreign !-' exchange, or taking poa i tions in forward curr-ency mazkets to Lnf'Luence private 'Ihis would imply, firstly, that the interventions in exchange markets of any capital oneflO1ffl) COUIltry!illP~I:{<9!,t oughtrathGr to have +han aS_:p",?ps~ signifioanteach other impaotin on thejr that effects country's onmonetary the ba.se. natä ona'l m:m:.;.t.l,ry baae , SeCiondly~ symetrical operat~.ons by sl.lrplufJ and d.eficit countries would. aSsure 'I'his woulda.n appropriateimply, firstly, mcvement that in the the interventions monetar~r base in :for exchange the Commr..:,'lityas mar'kets of' any a wholE'! (i). one ccun+r y ought to have a sig:.'1Lfioant impact on that country's monetary baae, Tl1e long run ~~8..!)'lji~"..£'J_~h~~'?,,,£~~:£:t would depend main.ly on t~é compa- SBcondly~ symeür i ca.l oper-ati.ons by sur-pl.ua and deficit courrsr-Les would assure tnülity of the rates of expansion of the domestic monetary base and the inflation an appropriate mcvement in the monetary base for the Com~~lity as a wha18 rates ù,~twee:n the different countries. (i). The lang run ~f;~Jj.!i4,.s.:f~h~.J'b'?,,,,r..~~:Lwould depend ma.ir..ly on t~e compa- In e'Taluating exohange rate polio~r there is a need for appl;y.t!:lg the. concept of It tiM li ty of the r-ates of expanai.on of the domestic monetary bas e and the inflation a nedium..ter;n norm for the effect.ive exchange ra~e of member cOlœ:h~ies. This ra.tes t:~tween the differen·t count.ri es , norm i'lould, in analogy ~..ith the siinilar concept developed by the International In eva'IuatMOYle-ta.:ry Lng exchange Fund, berB.te an estir.J.atepol i.oy there of theLs struciur.e a need for ofappl;y":t:lg effectivethe, exohange concept ratesof consistent a DGdium·~er~with the norm collectivelyfor the effeotive agreed ourrentexchange bal&lcesrate cf ofmemb€r payments. OOlw.trics. For this This purpose it is norm t-JOuld~neo(~ssaryin analogy to haveKith periodicallythe siinilara conoepfOT"i tic3.J.developedrevicw atby thethe Communi"t:r"levelInternational of the MOTleta.:rybalaJwe-of-payments::J'und, be an estiJ:\a.te prospeotsof' the at ofruc'tur-e the memberof effecticountriesve exohange over therates mediumoonsistent term, e. g. with the3 oollectively to 5 years, assumingagr00Q ourrent no majorbalffilcesohanges cf inpayments. exchangeFor rates this andpurpose levelsit ofi8 demand necessaryoorresponè.ingapproximately to ha.ve periodically a oritioalto whatreview individualat thc co.untriGsCommunity'level a.re aiming of the a.t over 1::he bal.ance-of'-oaymentmeÖu:n term.s pr-ospecusIt is ir,;portantof 1the tomamber underlinecourrtr-Les thatover the ap:?roachthe mediumterm, should be e. disaggregated. g~ 3 to 5 years,by cou:ntrj.osassuming rat~9rno majorthanchangesaim at somein exchange average rates :for the andCommunity. levels of demand cor-r-aspondäng approximately to what individual courrbr-i.es ar-e aiming at aver +he mec:iml t erm, It i6 ir.portant io underline that tho apor-esch should be disaggregated. -- by countries rat29r than aim at some average :tor the Corrununity.

~'''..~, ...... 4 (1) The medium ter~ projeotions 0~ real gross n~tional product growth rates together with e.':pec"ted or projeoted inflatiO!l rates v-1ill approximate the long~:run target ra,te of mCl2etary expansion to be choG~a:,;

(1) The m€diumte=~ proj~o~~ons ~f real grass h~tional product growth rates togethe~ with e_':p~~dedor projeotBd inf13.tim.: ratesv.al1 approxitnate the Long-e-im target rate cf mc~etary expansion to be choa~~~ ".

.',..'

L~ 25 / 140 20/10/2014J .-. " ..- 19 - II/675/3/74-E fin.

II/615/i!74-E fin. ',' 2.' ErLernal-boh'öwing and' an Exchange stabi 1ization 7--"'-~~~-~.,--:--''''''--~-~------;' ~ Fu,ndfür the 'COrmn'llmtyo 2•. ~~~~~1.b6~~~~!Lan~~------an Ex~an~~ stabi Uzation Funclfo~ .the' Com~miThe finanoialtyo oO~U1te~part to the very 1atge ~~rreni; ---..•.,..-~------',áccount im'ba-lances in 1974-75 is rapid gro~rth in the The finanoial counterpart t.o the very la~ge cur r errt '. aggregate indebtedness of the COmmtL.'1.ityand of some . accourrt imbalances in 1974-75 i8 rapid grot-rth in the of its memqers 'in'parlicular. The "recycling" of the ( . aggregat e indebtednes s of the Oommmäty and cf some surplus of the oil, exporters has so far proceeded of its memqc:i'S 'in 'particul8.r. The "recycling" of the more smoothly than one:cou1d-expect, though it has sur-p'l us cf the oiL exporters has so far proc eeded tend\?d to tàlceshorter-term form tha...'1.desirable a:nd mor-e smoothlytb.c.n one cou1d -expect , though i t has to bypass some ,member countries entirely v tenct~dto talee shor-t er=ter-m form tha."1 d8sirable and to b~pass same ,member countries entire1yw . There ,~s however' agro~~ng recognition in the . Community that 1ihe. si wation had become too riskY9 Thera \4aS hovever ag~01,~ng recognition in the This found expression in the decision of the Coun- Comrnunity that the'situation r~d become tao riskY9 oil of Ministers in October 1974 to authorize the This faund expression in the decision of the COUL~- :r8:~sinß,of a' Joint Lean of up to t 3 "billion oil of Kinisters in October 1974 to authorize the (ino1udingin~yrest ohE.rges); the beginnings of a ~~isinß,~f a'Joint Loan cf up to t 3 billion 'machi~er.y to mqbi1ize the joint oreditworthiness (ino1uding in~~rest c~.rges); the beginnings of a of the Commùnity are now in place. The lending "machinery to mobilize the joint creditworthiness . capachy of the IrLF Oil Facility is being substan- of i;he Oommunity are now in place •• The lending tially enlarged in 1975; howeverr many of these . capachy of the IV1F on Facili ty Ls being suDstan- loans '(dll go. to Q.eveloping countries 0 Most tially enlarged in,1975; however1 many cf these recently, a Fund'has been 'agreedupon in the loans '11:;1.11 go..to deve Iopmg countries 11 Most framèwork of th~ QE0D to serve a3 a safety ne'~ recently, a Fund~has beon'agreed upon in the e for 1.ndustrialized c9untries. (1). framBwork of th~ OBon to serve aJ a safety net forindu8trialized c9untries, (1)• I

(1)' When the Group first considel~ the problem ç,f recycli1'lg in .t:." early 1974 it moved in the (1)' lirren the Group first consideRd the problem (1:i.rection of proposing a large scale balance c-f recyclirtg in ·t~-~\ early 1974 it moved in the Qf payments support meohanism for the Con;;:nunity. (:irection of proposing a large 80<).10 balance tl'hough the availabilityof loans through the e,f' payments support mecharrism for the Con:::m.mity. . . three faci,li ties' mentioned in the previous p2!,T.<1o 'I'hough the availability of Loans through the tmd the,çriteria bJT which they will be given .-three faci.li tie13merrt Loned in t.he previous p.:o,T.al) M/re not. yet' clear~ there is now some hope that t~nd the.9riteria b;y which they will be given Ijlcdium-term, i~e';J 5 to 7 years, finance oan be are not'yet· clearl, there i8 now SOme hope that nad,~ aVß.J:;:!.ableto member countries" pedium-term~. i e e'it·5 to 1 years f finance can be nad.~av[?i::J,.a,blato member oouirbr-i.es,

'-'<,i . ., ...... ~,' 26 / 140 20/10/2014 l "c' .. :. '20' - II/675/3/74~E fin. II/675/3114-~ fin.

From a Comrrrtl~i~y.':~êWpoint it is doubtful, however, From, a CommU.~ii;y:":yieWpointi"t is doubtful, however-, whether theseA~i.t~~tives'."go far ènough. The stakes whethe! these::iJ~i.t~?-tii;es""go far enough, The stakes are particularly ~igh ~or ~émber countries; the Bre particularly high for mambor countries; thc achievements o~ t~e past 17 years in creating a .. ~hievements" of t~e"pa~t "17 years in oreating a Common Mar~et in,both 1ndustriál,and agricultural CommonMarket i~ both 1ndustrial and agricultural .. goods. . are endangered as long as the present extreme goods are endangered as long as the present extreme Vulnerability of several member economies persists. Vulnerability of several member economies persists. The Community has aims mbre far-reaching thanh~ the The Community haa aims more far-reaching than ha..ve the industrial countries as a whole for coordinating eco- indus"trial count ries as 1'1whole for coordinating eoonomic policies; and it c~nnDtt allow present centri- nomi,o policies fand i t crmnott allow present centrifugal tendencies in exchange rates to aggravate di- fugal tendencies in exchange rates to aggravate divergencies in inflation rates. The total available vergencä es in inflation ratese The total avail1'1ble It. shoul-d be very large and the Group wishes to underline should be very 1arge and the Group wishes to underline two courses of action to strengthen the Community two courses cf action to strengthen the Community element in interne.tional financial solidarity. element in interne~ional financial solidarity.

The first is an enlargement of .,ihe authority to raise The first 18 an enlargement cf the authority 1;0 raise Joint Loans. The present ceiling should be'effectively Joint Loan8. The present ceiling should be'effectively doubled in 1975, so that the mechanism would become doubled in 1975, 80 that the mechanism would become an effective second line of defe~') after a member has an effective aseend line of defen§') after a membenhas drawn ?n thé Oil Fàcility, but before it has to address drawn on the Oi1 Facility, but before it has to a.ddresB 'itself to the lender of last resort in the OECDFund. "itself to the lender of last resart in the OECD Fund. It would also be us'ùful to have authority to raise It would also be us"o:fulto have authority 1.0 raise loans ~rior to the reception of a requ~st from a member loans prior to the reoeption af a requ~st fram a member country. This could be achieved by giving the appro- __ countI'"'JeThis cou.Ld be achieved by giving the appropriate authority to the European Monetary Cooperation priate authority to the European Monetary Coopera.tion Fund (~4qF). It should be considered to issue loanslin Fund (~4CF). It should be considered to issue loans, in Europas as defined below. Europas as defined belowo The second course of action to which the G~up attaches The seeend course of ao+i.on to which the GfoUP attaches tliegreatost importance is to enlarge radically the the greatost importunce" 18 to enlarge radioally the short:"'term support facilities among members through shorf-term support facilities among member-s through an Exchange StabiliZation Fund. One area iiJ. which .. an Exchange Stabi1:i,Zation Fund. One area in which the Community has aims more far-reaching and well the Communi ty he.s .aime moz-e. far-reaching. and \>Tell defined than those of the whole group of industrialized n' . . de:t'1ned than... these of the- who1e group of industrialized '. countries~ is exchange rate policy. It would be intole- countries is exchange "rate policYe It would be intole- rable if intra-Comrm:mi ty exchange rato relationships rable if' intra-Cornnnmity exchange rate relationehips were to be pushed around by massive :~a~iŒ of ftUlds in were to be pushed areund. by massive ::lll

-.21œhereare - su,ppor:t mechani~J:I1s,inII!675!3/74-E place alreadyfili~ between the Central :Bßl1ks of,the pOlDJT!U.nity"The very short-term finan- ~here are support mechani~~sin place already between the ,c.ing agreem~nt, cqntinu~~. tg operate wi thin the so-called Central Banks ofthe .Comrnunity,. The very short-term finan- . "mini-snake".l.. ., .'l'his.e arrang~ment is inadequate in present .c.ing agreement corrtdrruee t.o operate wi thin the so-called .•. circums~anc~s. , .' pr~mar~~y because it leaves out four mem- "rnini-s~~elt. _':Ch~s.arrang~ment is inadequa te in present ber currencies.. 'l'he shor:t-term monetary support agreement ciroums~anc~s pr~mari~y because it leaves out four mem- which is managed by the ElI/lOF,has a wider range of appli- bor curr-encd es , r.Pheshor~-term monetary support agreement cation but its procedures have proved too cumbersome to which Ls rnanaged by the Er'1CFf has a wider range of appli- ensure rapid and sucqessful operation. The Group suggesls cation but its procedures have proved,. too oumbersome to that it is a~ urgent task for. the Oomrmmity to explore ensure rapid and succes~f'tlloperation.. '.. The Group suggesie ,the conditions for removing" these inadequacies and fit that it is aJ1urgent task for the Comrmmi ty to explore CcrnmurÜ.•. tyI co.operation,in~. the area of short-term capital .the conditions for removing these inadequacies end fit flows and pressures an the exchanges into the emerging Cornmzn.i ty. co()peration.iJ;tthe;,area of ahort-term capi tal framework of closer medium-term financial'solidarity . flows and pressures onthe exchanges into the emerging inside the Oom~ity as well as in broader groupings. framework of closer mediu~t~rm financialaolidarity , The proposed Fund is designed to tide members over the " ,: inside the Community as weIl as in broader groupings. fi~st shoc~s of finqncial crises; if the causes of cri- The ?ropoeed Fund 1s designed to tide members ovar the sis do not revj3rse them~elves within a brief period, the first shecks of finqncial crises; if the caUses of cri- oouj;ry will œ.ve to,J:1,dd:r-essitselfto the medium-term $i8 da not rev~rse them?elves within abrief period, the f:ac~li ti:e~.. coujry will have tO __addr-ess i tself to the medium-term fac/-liti:e.s,~The Group envisaged the'1iJu.nd to operate in the following "'way: resources woUld be made available by member oountries The Oroup envisaged the"lJhmd to operate in the following ,in' their own ourrencies (1). The total available 1\Tould ·way: resources would be made available by member countries be very l~rge, say ,of thebrder of ~ 10 billion to start in' their own currencies (1). The total available would with; it would need to be inoreased in the faoe of growing( be very large, say of theorder of ~ 10 billion to start stooks of ,potentially volatile olaims. Yet the volume of e with; it would need to be increased in the face of growine( money oommitt S'd over time by. the Fund should not be large ~

·stocks,, or ,potentially volatile claims, 1st the volume of beoause it would not operatéagainst any longer-tE?rm

_ money committed over time by.the Fund should not be large~ .d trends in exahq:nge markets and beoause 1 t ",ltll be because itwould·not operate·a.gainst any longer-term fGunded wi th1:n a short period. trends· in exchange marke'ts and because 1t wtll be ,.1. F~otnotè cont. fGunded withtnashortor between period.one or more of these and/ the dollar; but they might also, in the.. _p~~s.e~t, n~:rvous• • state of exohange mar- , ";.;"i , kets, arise from sudden F~~i;note cont. or.' between ons·ormere of these and the-, r~al dollar; or apparent but they - changes in , ~he policies or pol~~ica~ problems of a member country. ~. i .e in mar= "" might also, ths,._p~es.e~t.n~rvous state of exchange ,.: The impact ot'~:nibh flows. would be as damaginG for the l,o.t kets, arise f!'om ~~dcn -:r~al or apparent - changes in ~.. .. ,'. ~~ronger Commùnity c~rre~oies which might appreciate to " ~he· policies pol~tica~ problems of a member country. " or ..- : levels out of touoh wi th the medium-term outlook for thei', . <.' Tlle impact or: '.such fiows. would be as damagin.;!for the " .s,tronger Communitycurrent currencies '(;r ba~ic)balànc~, which rnight as appreciate for the weaker to ones which icv:els out ofwould 1to\lch· depreoiate·WitJ;l·i;hemedium-term to an extent outlook that could for thei·, effectively des- current ·(or basic)troy their balance, hopes as of for containing the weaker inflation.ones which would depreciate(1) to In an proportion extent that to an could agreed effectively pattern such des- as tha{ used troy their hepesfor of dividing containing the guarantees inflation. for the Joint Loan, i.e. Germany, U.K. and France Italy and (1) In proportion to an agreed pattern22.02%, such aS thai used14.68%, BLEU for dividing thethe guarnntees Netherlands for 7.34%, the Joint Denmark Loan,3.30%i.e.and Ireland 1.28% Germany, U.K •.and France 22.02%, Italy 14.68%, BLEU and the Netherlands 7,34%, Denmark 3.30~~ and Ireland 1.28% 28 / 140 20/10/2014 - 22... II/675/3/74-E fin,. Experiences with interventions in the "snake" suggest

that actual amounts can be small, even in periods of apparen~crises,- 22- (1). The1I/675/3/74-Eçontributionsfin. of members to Exp!,?riences withtheinterventionsFund and settlements in the "anake" ~ould be suggest denominated in the thai: actual amountsnew E.E.C. can be unit smal1, ,of account even in recentlyperiods of proposed by the apparent crises,Commissiort (1). The c.qntributions as described inof themembers following to section. the Fund and .settlements ~ould be denominated in thc new E.E.C. unitTheof FundaccQunt wouldrecently intervene p~oposed in Communityby the currencies and, Commission aa desoribedpresumably,in inthe dollarsfOllowingto coordinatesection. the roles of the eight Commu.nity central banks. It would arrange swap The Fund would facilitiesintervene in withCommunity other financialcurr-enci.es centres, and, primarily

pro sUmab1y , in, New dollars10r]q to such coordinato arrangements th~ r01es wouldofalso the 'be set up wi th eight Community otherfinanoialcentral banke. centresIt would su~harrange as Züriohswap and Tokyo and facilities withotherpossi'bly financlalan emerging centres, Middle prirnarily East financial centre5 In It .New Yorlc; suohthis:way arrangements the Fund would would also besupplementBet up wi itsth stock of :inter- '-'" other .financialnationally contres su~h 1\S~1:4(;aB Zürioh assets.and If Tokyo memberand countries t contri-

possibly an emerging, butionslJliddle were limiEast ted,finartcial the Fundcen~re~ wouldIn need additional this .way the Fundwayswauldof f!luppletnentingsupplement its its stock resources of iter-through short- nationally Vaibl:i.:;termMaats borrowing •.If inrnember marketscountriest inside or oontri- outside the Com- butions were limited.themunity; otherwise Fund would~~k0 need additionaland otheruseableinter- ways of ~upplementingnational its assets resources wouldthrough become scarce.short- This situation could term borrowing bein relievedmarkets inside throug~ or e.uthorioutside tythe to theCom- Fund to issue short- muni ty; othl3rmseterm ~~h;1papers or byand givingother ituseable access tointer- draw temporarily national assetson would the prooeedsbecome scarce. 'of the This Joint situation Loan. could be rclieved througJ:l cuthori. ty 100 the Fund to issue short-

term paper-s 01" Theby givingfund wouldit acoeaa be gu.idedto drawin itstemporarily interventions to stabi- on the proceeds lizeintra-Community'of the Joint Loan. exchange rates by two o~teria : It

(1) daily ~ctuations wàuld in general be limited to .. . The Fund would besome guided low f'igu.re;' in its the'change interventionsin anyto stabi- oross rate would !1;or-

, ' lizeintra-Community'maliY'be exohangeconstràiri~d rates to?by two s~y, ctiteria one half : per cent from . ' (1) daily nuctuatio~Bthé closingwould rate'in generalon' the previousbe 1imited wsiness to ~y. SUch lo':'-figurej" rate ncr= aome the: change in a.ny cross. would , .1. .,maily be oonstrairi~d(1) Theto, vêrys~Yr' existenceone half of per the cent ESF f'rom would be a considerable factor inspiring confidence and stability. It is the closing rate oil" -hila previous business ~y. SUch .thereforesuggested that the amounts actually re- '. quired for the Funds t s operations would be in in- verse' proportion tb what, would ./8 be nominallyaVài,lable" (1) The very existence of the ESF would bc a considerable :.- factor inspiring oonf'Ldence end stabili ty. It is therefore suggested that the amounts actually ~c- quired for the Funds' s operations wou.ld be in in- vez-se proportion tb what would be nominally avai,lable.

29 / 140 20/10/2014 I !,->I /.., /'7 'I;' ..., - 23 - II/ 0, Ji'::' ~::..J i4'''oW Il.J.."'

int ",rventions 1 undertakon~I/6·-.Ir.::inh./'7~ Commu!'li-ti;;c1trrenoV:['''1'' •• ies - 23 - .1 ,Jj~_,.)~/+-J.J_+. •. (or, if more practical, in dollars) wo-;;tlcl cher:k short run pressures on a C,..G':;.-encyarising ou.ti of a shift ini; 9I'Ven:tions, underintakon the reSèl'vein Commu:r:i preforenGes1;;r cnr r-eno of:tes large holders, a~d. (2) (nT? ii' more practical,wGeldyin anddo monthlyLlar-s ] wcald changes check would short not be allowed to

run prestures on a.cumulatecur-r oncyinar suchi.s i.ng acut wayof as2, toGhift distor~ the ~attern of in the reS6l've pr·3formLcesintra-Communiof largo ty exchange hOlde:rs, ra"tos., and (2) woek:ly end. monthly changes would nob be allowed to .cumu.la'be in such aThev.rayday-to-è~yas to clistort criterionthe ~)att8rnis thecf simples~ to apply?

intra-Comnnmi ty exchangeindeed I ra.J~csflBC central banks have been meving towards the adoption of a simiLn~1 though !'CJre flexïble? sys- e 'I'ho day-to-d.ay erd,tcriontom fOl' Ls dollar the simples·!; interventiOll30The to applYt usefulness of the Lndaed , BO central secondbanks have eriteyionbeen mcving i~ mûretowards epen tO~18stion, sinco it

the adopt i on of nhinges simil"":;'~9 on though tho sommvhatITJl"'G flexible, irr.;J:~ec~.de sy.s- COl'lCep~ of a nor;n8l1 tom fol' dollar interventio1ittThGor desired intra-Communityuaefu.Inosa ofpatteElthe .')r e:l.:chan,';8 rates. secend cri terion :L

rThich formed p~rt ofeconomies tte agreement aFar some on past inteTnational period would normally sot fu"'1 mone'bar-y nof'oz-m inupper 1974,., limit One S').0:1 to the::;::-,11emightchango inbe thetho..t cross rate of ihe ~ the (UfferenGc bo+wecntwo cUl~encies.(l).inflatj.Ql1 ratos in tv.TO member e economi es OiTor some past period weulrl n:)rmally SGt an uppar limit to theThe cnango precise in the procedurescr03S :-caiie by vihi.chcf -Lhe 'thé J?und \'JCu.1d ops,-"ate

tl"lO cur-r-enc i ee . (1).shouldL~~::kè0m~1e F~blic; that would make eQsy gai~s for specula-i:;o~s:> B--'.1t to gi "ilG more gt:d.dance te markets Tue precise pr-ocedur-esthe ~ï:':il:i'::..];Y.,:i:.:t.gby "l"Jp.:i.Gh ()TI";.'\v~1il·the Fund the"\·K:uld meè.ium-'1;ermopcra+o nO:i.'m is based aJ.d should npm::,b!?üm~1e possibly7..l.bHc; theth..:?;t ral1ge would formake theec~sy norm gaa.nsshould be made public~ for specul at cz-s, But, to gi ve ~--mor-e gul.dance tc m8.,rJ~ets (1) Sû.ch a rule ;.rould te:'1d to undGr1ine the role of

-< exchange rate changes é\S a second line of ~.s;?;_i\""'~e possibly the rallge forand the limit norm should recentlybe obsorv~ble made public~ tendencies for some rates to char-ge by rrrllch more than diHercnces in .- ..._-_ .._- . in£lation would warrant. (1) Su.ch a rule "\oTould te:'ld to und.er-Ltne the :role of exchange rato changec o.s a s econd line cf 1.9""1\.':-::00 and limit r-eccrrt ly obacr-vab'l e tende!1cics f:)1' nome rates to chango by much more tlki,l1 differences in inflation would warrant.

30 / 140 20/10/2014 .,..... I-.. I..,. ', . ' ~'" 1 -24~~' 1.LI- 6 (:>-/.)/ 14~..:..'f' 'In. f, 'IF,:lEJ'benef':'!.ts ai' $etting up the Exchange Sta'biHzation , Fund vrould be several in addi tj.on to g.cœter ctabn:i.ty in }>"\mdt-JOulrl be severa l in -add.i tion to grcci:er ctabili ty in exchange markets. It would fost.er a more positive attitude exchange marketsc It wauld fost.er a more positive attitude to the liber~lization of capital m07ements, for a long time to the libernlization of capital m07cments, for a lang time G~msiderGd an essential ingredie'nt of E..lropean integration.,. consd.dez-ed an essential ihgredient of E,;.:::·opeanintegr2,tion. It would also foster end reinforce eL,ser coordin2;~ion of It would also foster a...'l1d reinforoe cV:'3cr coor-däna+Lon of along the lines mentioned in the provious monet~r,y policy '- monetary policy along thc lines wentioned iTI. the provious ssction. It is obvious, howevAr, that tpe Fund is in no aec+Lon; !t i8 obvious, howevf1r, that t,he Fund La in ,10 way intended to diminish the need for membercou..."1tries to way intended to dimini.sh the need far mombor' cocrrtz-ä es to take meaSt1ref' of real aç"jus'tmerrt, i.n the medium term" The t8,ke measur-es of ~:'Gal ac.,justmont· Ln thc medium ·term .• The short.-term na;tI..1.re of the Fund's operations mu.st be under- short-term 11at~reof the Fund's 0p8rations must be under- H~~1edj the mat'..l.l'ities involved in :::,epayment of credit ex- E~1.ed1 +he mat:'l.l'i ti es invol ved in :::>opaymentof credi t extended through the F\u1d's operations would have to be long te~ded through the F1L~d's operations would have to be lang enough to pe.1'fnit f\:mdine,- thro.ù,gh the IMF Oil FaoHi ty, the E:]J' enough to peJ.'mit f'und ine +hr-ough iihe IMF Oil FaoHi ty, the!I:F

:' mission's current proposal. : missiontf;! ourrent" propoea'l , 13a~ed on t'he Silln of a fixed number of units of national e Based on' 1;he' sum. of a fixed number cf uni ts of national ' currencies this for~la' is ~ssenti~llY an instrument for sp currencies tbis fartmll~, i8 ~Bscnti411y an instrument for sp spreading èx6hange risks. Irt oQnt~~t to the present si- spreading ex6hange·risks. !n cQnt~;J,~ to thc present situation wherethe'whol~ 9Î' the exch~ge risk is carried tuation- where:the'whole 9f the exchange risk 18 oarriod 'by the debtór country its uS~,in the ~~CF as a unit of by tho'

., " ' The confidence in this unit as OCfflpa;.t".êdttot~hec'è'~ti:,*mmt The oonfidonce in this uni t as oempar~dtirotJflheC{I~t~t national currencies as w~ll as virà-vis outside currencies national currencies as w~11 as virä-vis outside currencies will Df course depend on the relative strength of the will of course depend on the relative strength of the currencies in the basket. With a combination of weaker currencies in the basket. With a combination of weaker and stronger currencies, the fixed basket European cur- and stronger ourrencies, the fixed basket European ourrency unit would, howèver, depreciate over time against rency unit would, however, depreciate over time against the strongest ourrencies, while appreciating against the the strongost currencies, while appreciating against the ./. ./. (1 ) Cf. ])00. CQT.! 75 (102) fin... (1) Cf. Loo. ccsr 75 (:U)2) fin32 •.. / 140 20/10/2014 ..'

26 .... II/675/3/14-E fin. .. weaker ones. IntE?rE3st ret'e differences on holdings in the European unit as 8.€,rainst holdings of national currencies mi~ht help to compensate for the difference 26 - II/675/3!14-E fin. i' .. in currency value expectations. weaker oncs , Interest l'B.t·e differences on holdin[;S in the European uni t as ab'3.i11:st holdings of national .1.' For use in the ope~ations of the Exchange Stabilization currencies mi~ht help to 60mpensate for the difference Fund for intra-Co!IlI!JWlj.ty exchange rate stabilization, in currenc;y value expectations. --;- each country would deliver a quantity of ~~a Ovfficurren- cy in exchange for the corresponding anount of the new For Use in the ope~ations cf the Exchange Stabilization Etiropean unit of account 0 .Fund for intra-Comrounity oxchange rate stabilization,'

eaeh country would deliver ~·quantityaf i~a O}m curron- The intro~uction of thi~European unit initially as a cy in exchange for the corresponding anount of the new reserVe medium end~ficial settlement currency impliés of European uni t of accourrt " . course that its international liquidity creating function . .. ., should be kept under strict control~ It should not become The introduction cf this.European uni t initially as a an instrument for uncontroled,increases in reserves. SUch reserve medium Gnd~fioial settlement ourrency implies cf a basket of European currencies does raise tecmlical dif- oourse that its internF~ional liquidity creating fUnction ficulties. These difficulties for the new European unit should be kept under striet control~ It should not become of account asa numeraire, howevBr, do not differ from any an instrument for uncontroledincreesea in reserves. Suoh other currency numereire in a world of generalized floating. a basket of Europoan currencies does reise tecmliccl dif- On the contrary, as an,averàge of the biÙ::ket it "Iilllmve ficulties. These difficultics forthe new Eur6pean unit a mo~e stable value in terms of most other ourrencies in cf aocaunt as ·a numeraire, how€ver, do not differ from any the basket than the individual oross rates. ' other ourrency numeraire in a ~rorld cf goneralizcd floating. Onthe contrarYf as E'Xle,verage of the baskG~' i t 'lodll have OV~! ~~d above this the Group has conc~rn~d itself with a mor-estable value in t.erms of most other currencies in the possibilities .Qf developing this unit ,of aootmiltir: the basket than the in4ividual cross rates •. It t~ a )fu,ropean parallel currency, the'Eu.ropa., the use of ~~~Ch wo~ld,Bxtend progressively in the ~arket, in par- Ovar and above thie·theGl'oup has·concern~d i taelf wi th ticular vi.a .denominating loans on the Eu.ro~ean capital the poasibili ties .ef developi;ng this ,unit .of auO"01:1iltir: marke:t., To this 'end it would be necessary to, make it e.t t~ a,mropean pa:r:allelcurrency, the'Euro·Pa.-1 thc use of c' least as strong as. the. strongest., currency in the basket w~~Ch w~ld,ßxtend progressively\0 .', in the ~arket, in par- by means of periodic revi~ions, say annoe a year, of .ticular vi_a.denominating Loens on the European capttal the weightsattaohed to each natiOIlc"'1.1 currency in the i t i t marke::t.Tc, this .end would be neceesary to make at i>1 " baskét. , least, as strang aa.the strongest ourrency in thc basket '.< \0 >'., ! by means of peI'iodio revisions, SA,y ,")unoea year, of ;~ the weightsattaohed to each natiol1c"tl currency in the , '. baakef •.

<,<,'

.,"

..,.1 ,. l 33 / 140 20/10/2014 .. £7 '. .,1 - I!/675/~174-B E fin~

IV }i'IRST, Sl'EPS TOWARDS ECONOMIC AND MONETARY UNIOlif -- ,~'.. .,.- --,- '" 27 - " 'The short term programme is not without ,ambition, . but j:t should not be 'the' only one :to' x.eq1iire the attentiórt of the govern.ments~ Witnqut wai- IV - !l'IRST WEPS TOWARDS ECOHOHIC AND 110NErARY UNIOH - ~._.~.tingfor, •.. thé---- complete fulfilment-~-- ofthis'programme 'it is essential that its implemontation be accompanied by some of' the measures alreády b~ing under- '·The shortterm programme is notwithout ,ambition, but -it should not taken; furthermore it will be necessary to consider other measures in the be -t'he -only one :to- :r.eqUire the attentiort of the government s , With~ut wai- long term~ To this end, it would be usèfulto specify the conditions for ting'for the completef'ulfilment ofthis'programmeit is essential that its &n economicánd mónetar~ union. implcmontation be accompaniod by some of- the measures already b~ing undertaken; furthermore it will be necessar,y to considsr other measures in the 1.. Tho conditions for an economic and monetary uni~ Long t8rm~ Ta this end,' i t would be ueef'u I to specify the conditions for -~L economic andWithoutmonetary being union. able to make a co~ete description, existing unions as mentioned below are characterized by most of the following features:

1.. Thc caudi -iionslarge forparts an eco~icof the populationand mon6t~y having uni2.n a feeling of belonging to ~ union; Without beingonable the basisto make of thisa comiete socialdescription, -consensus, theseexisting unions unions possessas ,a deci,si.on mentioned below~k~ngare charaoterized centre in whióhby most the threeof the classicfollowing powersfeatures are repreàBntod : : legislative~

- largo parts ofexecutivethc population and judiciàry.In having a feeling addition of thisbelonging decisionto ~making '~ion; centre is able to react rapidly to changing situations and distinguish between the interest '- on thebasis of this soeial -consensus, these unions poas easva dec Lsion ofihe union and the Sum of the component interests;

naking contre in whioh. the three olassic, ~OWCTS are repreaBntod : legislative) execut i ve- anda singlejudicia-r;y-. central In additionb~nk'ör thiscentralised decision federal makf.ng,centre bAnk sy~~emresponsible Ls able for to react,rapidlythe managementto changing ofsituations the sole currency;'and distinguish be'tween the interest , ; , . oftheunion freeand circulationthe ,sum- cf the of individuals,goóds~compon~nt·intereots; servibes and èapital;' e- a cingle contralcentralbankor ~uthorities'centralisedfeder~l ~th a ;'r~l~'ti~~lYbAnk imp~rtantsybtemresponsible bu(Ît~et(Féderal for Germany . the managemerrttheof pr6por"honcif the sole currency; "Bund" in"thêGNP, 13%;Cánadä:"pröportion;:of . freecir~ulatfonfederalof expendituresindi'viduals,goo'ds~ in thè G1TP..16.:.,]",'%ofser-vi ces and dapital; ooh. '.

central ~utho;i{'ies:- the exist'enceofwith a~'r~l~-ti centràlised~~ly imp~rtant fiscal:and'budget social'(FederalGerrhany seeurHy s;yste!'(lS ~msuring a certain degree of redistribution, including a redistribut:i,onbetween tho pr6por't.i on' of 11Bund' I, 'in ",1';19 GNP,. 13%; Oanada:' ,proportion;:'of, the regions; federal expenditures in the GJlTP-16.:,penness :and aoc betweeni a'l, seeuritythe: regions., systems:,in ensuring oth.er: word:?, for " a certain degreeeachregion:~of redistribution, the' share ofincluding éXteroalaredistrib'll.t:!,on trade in its.producti.0rl' between is very high; I ,', .~ the regions;- the ownerßhip' of the capital of ènterpriscs i f3'~dde1y distributed ~furc%gw..

- a VCr'J high degreBo~t thef)f Union~sr-penneae territory.between the' regions., ..,in otner: word~, for eachrecion:; shareof externaI trade its,produc"\;ion' is very hieh; the' in . '~,' 0../0.'0. ~ , f • ~ the otmor-ahf.p of the oapi, tal of enterprisc:s i13 ',ddely distribu1.ed ~1h'tru.Wr-- out the Union's territorJoh'.' .'

34 / 140 20/10/2014 - is I: Iti1~'i13f;~/+4El£in. - 28 ., .. ,. These criteria have the" common cha,racteristic of implying a high .. . .

degree of political and" economic~ interdependence.. of the regions arid, These eri teria have the common che,racteristic of implying a high what is important with respect to the aim of economic and monetary union, .. degree of poli tical and eoonornio interdependence cf the t'egions arid, is to establish automatic rèbalancing mechanisms for cases~ tootgreat a what i8 important with respeot to the aim of eoonomioand moneta:ry union, differentiation in the economic development. i8 to establish automatie r~lancing mechanisms for ca8es~ tootgreat a differentiation in the eeonomic development. Neve:Mheless, it is cleär that economic and monetary unions can exist with very differat degrees of 1nté~~t1on~0n~ The United States, NeverlhelesB, ft 1s cl ear that econond,oand monetar,y urd onaoan Canada, Austräliaànd the Federal German Republic are examples with exist with very diffe~at degreeB of tftte~gt1ofi.i-'m~ The United States J respect to : Canadat Australiaand the Federal German Repullic are examples with respect -totaxation : systems; -- - taxation- thesystems; budgetary independence of the administrations of areas below the , nationa-l level; - the budgeta.ry independence cf the administrations of areas belew the , national- the level; access of these 'authorities to ca:pital 'markets and national finance; the numeroUs differenoes in the legal framework of society, cultural~ - the access cf these 'authortties to ca:pital 'markets and national finance; standard norms, medicine, pharma~~, etc~.. the numeroUs differences in the legal framework of soeiety, cultural~ standard norms, medicine. pharma~~. eta ••• In these unions however. there are important e,utomatic mechaJhisms which ~~.. fluctu.ations in economic activity,. For example,a fall in In these unions howeverthere are important f),utornatic mechaJilisrns

economic activity in a region may, be offset by: . which o:tf"~, fluctuations in economio acti vitYe ' For exampl e, .a fall irt eoonomio - activityconsideràiein a reductions region may.be ,in the offs imports at by: of the region oonoerned; - consideräie- re,ducti.ons reductions ,in the.in paymentthe imports of dividendsof the region ?t'O'oùtsi~f>',re8!i

35 / 140 20/10/2014j / i 1 =~= ~I/flr~/]/1*nfr4'-t.in;:l'

,. .'- .:!.,,.. b ,",,<' .1.'1..',.,...... 0cr"_,erni ng .,.J.e ~'::';"":.:.::J..t ""~ .l1.'3;;2n._::::-_~u"+' \lJo:...:!.;.;:.t,

() a common ii1on8tal'Y policy; pol'icy 111 a commoneconomic -;. ~. a CCI!ll'r.an,social policy,

,) a common Fion8tal'Y policy; concerning ~i!:tllti?~ e a cemmon economic poliyr o a central commun5.ty bank or systemof ce11tra.l bt"rJcs l'cspOnSi-ble for o a common social po l Loy] the management of a monetary policy?

concerning ..~itt.u't:i.o~a deoisi.on making centl"e responsible for economic and socia1 policies o a central ,andcommunä ablety tobank actor b;y'system meansof of central a budget banksoi' significan'Lrt:sponsible size; for the man~g€ment cf a monetary policy; - o a democratic oonirol by meffi:..s of aL.. Eul"OpeJ.n Parliament elected by 11 adecisionuniversal making Cel'J:tl~e suffrageresponsible and endowedfor eoonomic wi ih real and leGÜ~lativeaoc Ia.l policies powe:.n:;" " ,.and abi e to aet b;,· means of a buC.gf/': of slgnificanL size t However, at this stage ii appeared to the Gro~p impossible and even " a d.Bmocratic corrtr-ol, by mear•.s of an Europsan Parlia.ment e.lect ed by uselessto predict what should be the divis10n of powers necessaryfor um.veraa.l suffrage arid endowed wi th real lszi';:;lative powcr s , the satisfactory operation of an Eco:ï1omic and mO?;e'tary uni.C_1~ , However, at this stage it appeared to the Gro~p impossible and even ~ .p,; p '~ ' ,G ps 2~ l JJ .J...!.o.t.~.J~~'0"" ,'" S 't UßeJ.ei3Sto predict'" what should be the div1s1on of powern neC8S::.H,tl-Y for the (lP.tisfa.ctoryoperationIn t'he course of ofan coming ECJrlotnic years, and them:östary memo0runl.o.r, S'tates will have to face a n'J.m;:;er of problems which will reqldre solu"tio}"}ß in a wider CO!.'(.Bxt-(han that of each nation s1:ate. The i:nd'.ls'trjal structure shonléi., for Bxe,mp1e, be thoroughl;y adapt€dfollowing "the mèrgy orisis., f.i'1fu;m3:is mo~e',)Ver the In the course of coming years, the memb0r S~a~es will h~ve to face a danger' of a f'u.:;:ßher increase in unemployment rates and a proGTe~::3ive se- ennmber- of problems which will rec;u_ire eo Iu+i onn in a wider \';or"\~ext"lhan gregation of oapital marketsa t:19..t of each na+i cn s"t8.te. The in:i'lStr:ial a+ruc+ure shotlLl~ fG!' Axe,mp1e, boG +horoughl.y adapt cd f'oLl.owl.ng -the mergy cricis •.'D.a:l....5:m:i.s nor-eover- the a) IndustrieJ P01icy dang öl' of a fu.~eI' Lncreaee~- in'- unempl oymerrt rates ani a proGT8s::::ive Se- gregation of capitalIt is of marketß~ p~ramount importance that ths Com:~~ity con~inues to develop the potential of the large scale ~~rketo

I ~ Xt is of pe.ramount impcrtanoe that the Com.rurdty corrt.inues -to .,,~/e<:,o develop the potential of the large seale rrarketQ

36 / 140 20/10/2014 ;:",: ..'

.:(,

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_",'::l ...... (.r; ~ ~:;: Iff! sr:3_ 1?:~ .%in. - :/J 1:.", ~ I ! ..-" n I ,~" -'I

-,,~ A prior5.ty must 'be given- .)u to ••.. measured for Communi't.y ifJd:u.stries., To th:Ls end1 it is fir"st ne(;3Ssary to continue to 'builel a single industrial 't~,'2d,tirB ';. A prior::.tywithin the must Community be given 'by to :meaaur-eo far Communi'r.y in1ustries., Tc this (~ end} i t 1a fi:rst n8(; 3s.aal"Y to continue to builcl a singl e :i..Yldustrial 't~.~ wi thJ.n theeliminatingCammuni ty by 'barriers, : par'ticularly legal, fiscal and of standards, to the free cirGulatioll of goods; eliminating bar-rder-s, par-ticularly legal, fiscal and of standards, to the - prog':"'essi ve and eff\:::)ti va deres"l:;riction of pu'blie contracts; freie c:rGulation of gools; - ;')ringing together a..'1d esta'blish:i..ng co-operation 'between firms at the progr-eaai.ve and efi\:.~tive derestriction of public con+raot.sj European level. - ~ringing togetl1er and establishi.ng co-operation betWE"enfirma at the European le~;·81.In any case, such an approaGh should be aocompanied by initiatives of __ the same order äh,"thct].~""i;t.:;,,:dathe Comnn,mity would fi:nd ad' .antageous to take In any caae, such an approach should be accomparri ed by i.nitiati vcs of at the internationallevd, not only , with respect to _'if$l~Ùii;ti.jJ:1!1leBinexcise the sameduty, order boxt;:d!'.tii'ctJ.0.l'±!:'.f:''b. equally forthe ';otherCOmn1ll11ity 'barrierswoul.d which find hinderad:.arrtageoue the developme.."1tto 'take of world at the internationaltrade~ level, not onlyvri th respect tO:iJ:~~±l:-mßB in excise cl.uty, ·lf.l't equa l Ly for ·:other barriere which hinder the deveIopmerrb of world

In adQition, in t~e immediate future, i~dustrial policy should 'be devised as a pa~;kage of measures which would .facilitate the adjustment In addition,of impoX"b.m:t in t~e indudrial immediate sectors~future, Ini~dustrial thi8~tf, policyitshould is a questionoe in devised particula~'"aS a pa8kage ofof pr'Jmoti:ng measures investmentswhich would wi .fac11itate th the aimthe of :adjustment cf impp:C'·bant indm:rtrial sectors. In thi8 ~~!':, i t is a quest Lon in particula2theof crea't50:n pI'~mot:ix.g ofinvestments new sourceswi ófth energythe aim and of the : development of more energy saving meaS1.'u.'0S; ." the cr-ea+i.on of n{;wsourcea of energy and the devel opment of more energy «t. - the '1'30e8sary reEtJ"1J,ctïU'ing of indu8tries with respect to the new external saving meas>:Cl''Js;demand stemming from petroleu:n prodi.11ing connt!'i.es;

- the :'1.008SS0,.TlJ reE"tl'u.ctu.ring of' industries with r-eapec t to the new external dernand sternmingThe Grol,;.pfror.:' thereforepetroleu:n suggestspro6.i.l;ing thatc01mt:d,ea; a new programme of i:ndust:J:rF.4! policy bet set tip wh~,ch should embody : The Gro~p therefore suggests that a new programme of i~dus~~, policy bet set -t:;iJprogrammeswh5.ch should of energy embody polio;r : (cf. chap. Q.~elow) teohnologioal- mld Sdel1"tinc research meas-.:.res, pé'..rUcularly wi th .. - programmes of energy (cf. ~~elow) respect ';-'0 adjlls-trnentpolioy pro'blems.chap. - technological'ffi:d scieDtific research meas~re~, ~~~~icularly with respect +oThead.justmerrb aims of slJ.chproblems. a programme must serve as a backgr01:md for the guidance of the measures taken 'by \oiaYof the comnnmi.ty 'budget, the activity of the The Regionalaims cf suchFund a s~~ald programme in paI~icular must aerve beas so a influenced.backgrohnd for the guidance of tne measurea taken by 'Vray cf the cOl'rlml.mi:~y blldget f +he acti vity of' the Regio~al Fund sh~Qld in paI~icular be so influenced.

37 / 140 20/10/2014I - 31 - II/615/3/74 -,E fin$ - 31 - II/615/3/74 -,E fin$ ~»Erlergy policy rDf) Energy policy-,.... ,- ;,; meTw policy cow..rti'~1,):tE;s one of the main areas in 1rlhich european unity mersy policy COWJ·t;i~~l).'tesone of the main areas in '(,hich eur cpean unity will "be tested in the next period and where common ac'cion is s~;T{;ngly needed. will be ~~0Gted in the next period and where ccmmon ac+i on is s~;r'Gngly needed s ~,~ost EEC countries, except ]'rance, adhere to the $)1ternational F;ael'gy Agency }nost FEe coun+rdes , except Prance, adhere to the tntern.ational F,:"lel'gy' Ageney constHu"ved in Paris b;}r the OECD.. At any ra:'~e, it seems i!f:portant that conat i.tuved in Paris bJr +he OECDI) At any ra~~e, i t secna i,r:portan·t that here Euy.,:;pean count.!'ies speak with one voice, so that it ap~:;!.ô appro.- here Eur-::.pean count.r-i.es speak with one VOiC8 so that it ap~D appI'o,~ priate that acti vi ty "by EEC me;nbersf in it should be ol'g,mized at the BEC priate tha t acti vi.ty by EEC member-s in it ahou'l d be ol'g;-,nized at the BEC le,-el and linked wi th :tllat oE t~l.e EEC partners l1o'b belongingto the IZ;i\.~ le\"e1 arid linked wi th 'that oX' t:le EEC partners 110·1; 'belanging ;;0 tha IZ~\~ Similarly for other ai). ini tj.atives where EECmembers sholJ.ld be i.nvolved: Simila:dy for other oi}. ini t:!ati ves where EEC membere ahcu.l.d be LnvoIved , at the international level, wh<.::,t:f,erfor relations among conmUJe:C'iJ or conat the international Leve l , vlh?;,tJ-.el."' for rele:ti0YlS a:nong consumere or cOrJ- sumers and producers.. The EEC shouJ,d evolve a:1 EUropean energy auihori-ty rrumer-s and :producers~ T11e EEC ahou'ld cvo lve an mropean energy aut.hor-i -t~{ whi,.:;11should have the powers 'U.;,'ltil now given to the Eu!'opcan in3";i tutions e....-hj,:;\ ahcuLd have the powor-s uzrt iL now gi ven 1:;2' the Euz-opcan i nT'; itu-ticns of coal a11:1.of atomic energy- as wellas the acLL:it.tonal p01V'ers to car:C'"jI' of coaI an:l of atomic encrgy as well as the ad,:liti onaI power-s to carr-j" out its task aB o~tlined below : out its task aa outlined below : a) stockpiling of energ'J resources (crude oil, natural' gasr eoa,]., l}.ranium) a) stockpiling of energ:r resources (emde oil, natural' gas , coe,1, , uranäum) b) recording and surveillance on energy pric8S (to preserve snitable re- 0) reeording and surveillance on onergy pric8s (to preserve suitable rB- lations among the different for~s of energj' end ,amongthe various pro- lations among the different for~s of energy sud nmong the v~rious pro- è:.wb derived from oil and to foster a unified. Et::.ropean I-;~dcing system) C::..i.cbderived from oi L anü to foster a urü f'Led EL::.ropean :;..,};'icing Sj'2'tem) c) collecting :1_nformation on imports and expc:rtG of 0il and. oil products c ) co l Lectlng information on imports and expcz-t.o of ail and oil produo be thro1.

These actions should be implemented- 32 - by means of various instruments : sU.ch as cred.i t faci.lii;iee, subsidies thro1.:l.gh the EEC bu.dget, Com:J'!u.nity

Th9se actdreguldions' ons shou1d aimingbe implemented at the harmonization by means of of var-Lcus pol1.cieELginstruments recomm'";Jndat:i.ons : to " such asnational credit faci.litieB~ gove~~ents,subsidi-aB etoo~. through the mc budget, Corrr:nu.ljl ty ~ J'Ggult:tions' aimbg at the harmonization of poli.cieB~ z-eocmmendat tons to natiollGlTheregove~~ents, is a pOHed\J.letü~~. Eu.ropean interest here; vast investments wil!. be under- t~ken in the energJ sector and decisions in this field are bour.d to häve

There i8t:.mWaht,!iiP:jra poworfuJ.poliJ1Uropean tloal implicationsinterest here;whichvas+ wiJ.linvestments influenoewH:. the f\d;ure be undar= sha.pe of tsken int~e tho Comml~~ty.energ,j' acetor Common andpolicies decisions actively in this ~lrsuedfield arewitrt bourAan eyeto tobave the dis- },'m~al:rt6ß.:;7tinotivepolitJ.o~l E~ropeanimplications 1nierestswhich are will required influence if the the welfaref\::.ture ofshape the i~dividualof tbe COmM1V~~Y.DJ.ropAanCommon eonmr~u:1:bies. policies cr;.untries actively isV

It is c18ar that in the final stage of unity, the COmr:ïunity mtut in i ta budget fulfil the three t.raditional functions of every pu.olic authority,

It iElnamelyol cart th2:' in t!le final stage cf uni ty, the CC!'!1!~"ll1i ty m'.lfl; in i ts budget fulfil the three traditional func'tions cf every pubLi,o authori ty, pr"vision of p>_lb1:i.cgodd.s(allocation :f\mction); namely ~ stabiHsation policy; and .~ pr"lvisiondistributioncf publi,c god:ls(allocation policy~ f\mction); stabiHsation policy; and .. In vie~{ of the minute size of the Community budget (around t per cent 'Óf distribution policy~ t11e Community's GNP in 1973), it is lJlt:-'!l that these fu.nctions can only be In vie~.,taken ofon the ~rogr8ssivelymtrm+e size cf over the a Communi relative13rty budget long time-scale. (around t perHencecent f~rof some the Communitytt:tme yets GH? 'l;he:;-",rl.l1in 1973),fallittoi8 theD]~~n nationalthat these budget. ftlllctions can only be taken on prograssively aver a relative13r lang time-saale. HBnce f~r some t:tme ye1; °the:r ',dU fall to the national budget.

39 / 140 20/10/2014 "- 33- II/675/3/74 - E finQ

. As'regards thè'stabi1:lsation funct.ionin particular, experience shows .:; . the ina'dequacyof mere voluntary co-ordination of national budgetary po- , , - 33 - . II/675/3/74 - E finG liciêS~ Irt' order to take the first steps tOI1ards a comraon demand~management ,. policy, a stricter disciplineofgOverninents in their budge'l:;ary decisions . As·regards the'stabilisation function in particular, experience shows is thus indispensable~ In the longer term, this approach must stress the , the Lnadequacy of mer-e volu..."'Iltaryco-ordination of nationa,l·budgetary 1'0- development of the properstabi1is~tion function of the Community budgetl.> lieiest) In' oz-der- to take the first· stops to,.mrds a common demand-managemerrt po.Licy, a str1.cter disciplineef 'gOverninents in their budge'l:;ary decisiens On the óther hand the distribution function of the Community budget Ls thus indispensable .• In the longer term. this approach mu.st stress the could easily'be extended fromnO'!rJ onwards; For the immédiate futu.re it deve l'opmerrt of' the proper stabilisation func'tdon ef 1:;11e COTmnunity budget!> would be a question therefore of this budget contributing-to the diminution of the economic disparities within the Community, notably structural and '6rt thc bt'her hand thc distribution furiction of the Cortmiuni ty budget regional imi:5à;l'i1.rïi!fés'Qfor it is,'these dispariti,es whièh bring àbout migra- cou l d easily·'be· extOl1.ded f'romnow onwards , For the immediate fu+ur-o it - tion fro~the less~develope~ reg~onsto thehigh~y ooncentrated regio~s; wou Ld be a question therefore cf this budget contri but äng-to the dämi nution rcsu~ting in a less desirable distribution of the factors of production of the economic disparities within the Community, notably structural and and a'sloliing dovmin the improvement of overall Comn~itY,welfare~ rGgional iml:)ä)l~:a"S>f.:;; for i t is, these dispariti.es wbich bring abou't migra-

. ~ ,. tion f~o~the ".less~develo~e~'. reg~onsto thehigh~y concentra..tedregic~3; As regards income, the system ,of 01"/!lresources consists of i'Ùœlréct resu~ting in a lessdenirable distribution of the .faetors of production 't(;).,xes (customsiduties, ,levie,s. i1f the ,field ofagricu;I,tur~ .an~ a. share and aslo~dng dOvID in the ·improvement of ovorall. Comnmnity.welfare~

.' .'of VAT)ç This',ct!-Tren:j; inpome is oJ,.a~ne'\.1.tral of even regressive che.racter, . ) ~. mè.asured, in rèlat.ion to individual incQmel> One s.1lOuld therefore envisage, As regards income, the systemof 01'iTI resources consists. of fj'J.d'.LI'~ct for the next few years, the establishment of taxes of a progressive nature .t~.xes (customs, duties t Levä.es ilf the ,field ofagricu~ tur!? .anli a. shane rold B..."'lsurethat expen~itu:rf? is 'a.t leé,1.st.of. a neutral charact.er$ The intro- :01' VATh This·.c-q.rren,t äncome i8 o:f'a,ne-p.tral ofeven regressive ch.?.racter, .; , ",duction of acqmnn.mi ty land tax on. inQ.ustria:!. sites. in highly,c.Qncentmted . . .",.,.."'., . ., meaeur ed:" in relat-ton tQ individua.l incomei).Ones.hould therefore.- envisage,." .'- areas (congestion tax) might constitu'te an important step (1).. efor thc next fel-J years, the establishment of taxes of a progresslve nature andxmsur-e that expen~itu:rf? 1s ·$.t le~.st9f aneu:tral chC1r'act.erli The intro- Furthermore, 'if t'he'CÔ~111i ty bùè.get is to fulfil progressively the . ·,.ducti.on o~ acomnnmit-y land tax on. Lnduatr-i.a'l si tes, in highly concen+ra+ed ", : : tl-i!'ce''" f\mctibn~. "~fpub1ic~ ',- auihorli:ies,. . -, ..... '. i~. would.', 'seem';particularly," .. helpful areas (congestion tax) [!light consti tute animportcmt step, (1).. " to', complete t'h~' C~h,mÜnityls' :taxatioh P6wers"forth~i'th','by a. b6rrowing pOtver~

~ In this respect ,theCommunii;y lOan should pe, developed; so as;, 1;p beoome a Furthenn~r:e,'"if the"Conrinnn:i:ty bUrlget 18 to fuJI'il' progress i vely the normal procedure 'in .'Pudge:l; management,; ,fol.loV?i:rgthe e~ample of the ECSe (2) :ti1ree' f\~c't'ibn~:"of"pubÜc authorl-ti'es, i i; would 'seem"paI"ticularly helpful , . to' ccimplete t'hie Coriumitii ty t staxatioh Pawers' ·foMh~

, : :I>ru/?sels'y, 1973, p.'53 et,S'eq$, . noz-mal prooedur-e 'in -budgef manq.gement,- ,fol.1ovr.i:rgthe e~mple of the".EC$C '", (2) '- '(2) Treat~T 'esta:biistJ.n,œ the EUropean Coal' arid'St'ee'! Cómr!nmitYi':artj 49 et Eeqo (1) For longer-term measures the group. drmJS attentionto. the ideas de- vo'Lopcd in the lIReport on eoonomi,c integra.ti~n and .,.uni on", monetary . ~ .I ,;1iI'Ul;}sels(1973. p.,53 et.seq_. ""." .... ',' . . ",'/' ," ',"

40 / 140 20/10/2014 ,.- 34.- II/675/3/74 - E fin.

..- 34·- 1I/615/3/14 - E fine Such a meaS1l;re would, moreover,. be calcu.läted to' ease the' process of industrial restructuring and the promotion of new souroes of energy. ;; Such a measune would., mor-eover-, be calculated to· oase tht:l process of Over a longer span it would be unàvoidableto bestow on the Community industrial rcstructuring and the promotion of new souroea of ·energy. powers of short and long-:-term CJmmunity debt management. -' Over a longer span it would be unavoidable to bestow on the Community powors of ahort end lOn$-:-termC'JlnmUnity debt management. Over and above these budgetary aspects, the group considers' that the means of redressing imbalances between Community countries should be con- Over and above these budgetary· aspects, the group consd.deea that thc siderably reinforced. It ie of the opinion that the introduction cf a means of redressing imbalanccs between Community oountries should be oon- community system ofunemployraentbenefit would constitute an effective .. sid€rabl;r reinforced. It in of the opinion that the introduot~bn cf a approach. oomrnunity system of unernployrnent benefit would constitutc an ~ffeotive approach. e) A oommunity unemployment benefit fund II e) A communi tyAunenmlollllc,nt comrrnmi ty ini benef~tiati vet fund in the unemployment field is particularly opportune, for it Will have beneficial effects on the economY and society as A comrrnmity ini ti~,tive in thc unemployment field i8 particularly op- a whole. Without waiting for ambitious programmes of generali~ed harmoni- portune, forit Will have beneficial effects on the cconomy and society as sation to become operative, one definite step in this direction might be a whole. Wlthout waiting for ambitious programmes of generali~ed harmoni- to prove before public opinion that "ammuni tysolida!'i ty is a reali:ty. , . satien to become operative~. one definite -.step in this directionmight be 1,1oreover the size of the problems'posed at present for the member States to prove before public opinion that 'omnnmity sOlidarity 16 a reali:t;y. by unemployment justify. the effort to find . appropriate'. means ät COII1!TIl.1.nity t,~oreover thosiz~ of the problems posed at present·.., for. the member.States level to enable the Communi~y toproVideassist~oe in this '1aY. by unemployment justify the effort to find appropriate meana at Oomrnunity level to enable the Cornmunity to provideasSistance in this ~my. A Community s~tem of unemployrrient benefits could be an ef:fective ine- ," . . . ~ truinent. At the presèntstage, the cr,e'ltionofsuoh a fund seems particu- A eommunity sYstem of' unemployment benef'i ts could be an e·-t:fecti ve ine- larly opportune for the following reasons : truinent. ·At the present stage, the cr.e9.tion of auch a f'und s~ems pa..rtiou- e larly opportune for thef'ollotdng .r-eaaons : - the p.peningo of .markets and. the ;f;fiet:~of specialisation and. geographical relocation this~rings~ are often manifested by afriotional - the openfng ofmarkets and the ;:t;flee$of speclalisation and. geogra- Wlemployment which ought to be' the responsibility of the CommunitYi .phical releoation this.b"rings·,. areoften. manifested b:r a ·friotional by a rapidtrans~ unemployment~ th~ which interdependenceought to be'thereSponsibility· of the economies isof aècompàniedthe Ccmmunity; . mission of fluctuàtions in~ctivity, these fluctuations would be ~ the '1nterdependence of the economies is accompanied by a rapid trans~ .cushionedtorthe benetit of !lU by the autèmâ.tic compensatory mo- mission of fluctuations in activity,..' these fluctuatione would. be vements of. such a' system. . . ~ cuehioned for ihe benefi t of all by the automatio compensatory mo- . .' vementsCertainly of suchit a' system. is not possible to rapidly cre~t~ 'a completely ~ntegrated fund, this.'would require a harmonisation of national systems. In any case; taking Certninly it is not possible to rapidly cre~t~a oompletely ~ntegrated fUnd, "'" into account the scale ot the problems posed by unemployment, and which will .this'would require a. harmonisation of national systems. In a.i\Y" oase; taking continue to be posed for some years for member states, and with a view to into aocount the scale of the problems posed by unemployment, end which will progress towards economic and monetary union. the groupiis of the op~mon continue to be posed for some years for membar states, and wi.th a view to that a temporary solution 'nn.lst be put into effect in the near future. progress townrds economic and monetary unä.on, the groupiis of the opinion that a t emporary solution ·nro.st be put into ef:feot in the near futUre •• 41 / 140 20/10/2014 - 35 - II/675/3/74 - Efin.

This temporary system (1) would operate in accordance with the following ,. principles : - 35 - II/675/3/74 - Efin. ~e COmnnL~ity fund would be an indepcnd~~t administr~~ive body directed .'ÖIt - This temporar,y system (1) would operato in accor~~ce with the following With the partioipation of the social partnerS (for example within the principles ; framework of the perrr18~ent Committee on Employment); the administration, - ~e Gommunitycontrol fund and would management be an of indepcndant the Fund will administr~~ivo have to be body simple directed and efficient. With the pa.rtioipation of the soeial par-tners (for oxampl.e "Jithin the Each unemployed person, registered at the national employment offices framework of the permanent Commi,ttee on Employment); the administra,tion, would receive as a first part of his payment a COmmunity allowance 't'Thich contral managemerrt simple wouldand be clearlyof visible the Fund as will such. have Within to be an initialand period, efficient. this al- - Raeh unemployedlocation person, could be registered fixed at aat setthe amount, ~~tional for employment exnmple two offices units of ac- would receivecount per as a day. first part of his payment a (Pmmunity allowance which this -would £be Onclearly the baM<.sof visible thisas first such. part,Within thean nationalinitial period, governments wouldal- be free to loeationadjust could at be their fixcd discretionat a set arnount, contributionsfor excmple and allo'tvances two units cf paid ac- under their

count pernational day. systems. ~ Onthc "hatts of this first pan, the national governments would bc froe to - The Fttnd would be fed by a contribution from income paid in part by em- their their adjust atployees anddiscretion in part contributions by employers.and These allo~mnees contributionspaid under would have to be

national clearlysystemsw designated as being made to this fund. - The FtUld would be fed by a contribution from income paid in part by em- In a second stage, one could conceive a system which would constitute a pl oyees and in pc,rt ".:ly omployer-s, Those contributiol1s would have to be combination of fixed amount and a peraente,ge of the last vm.ge recei veel in olearly designe"ted aS being made to ihis fund. cmployement, vdth all its possible variants. In a secand stage, aue could conceive a system which would constitute a In a third stage, in the more distant future, it 'trouldbe neCeSSQFJ to combination of fixed amotL~t and a porcent~ge of the last ~~.ge reoeived in establish a standard

This principlc(1) Annexwou.LdI at thc G);ommunity level gu.ide the actions taken 'by the renewed social fund aS weIl those of the regional poliey_

(1) Annex I

42 / 140 20/10/2014 ~-~--"':"..." ~ 1 - * II/675/3/74-E fin.

AlmS)( .' ~.~

cor'ü'"1T,.JlITTY UNEJVJPLOPOOIJT~~ , B.BThTEFITS SCHEME ::...1- ro-",~ ~.'~~"'~''''' ~'='V ....,...tU'~~,~. * II/67S/3/74-E fin. -- The 'lroblems ~, ~~ ',':' ... T~e sc~le of the,unem)loy.nent p~obleQs currently facing the Member States w~rants

an attem~t B.t CO!l1!.'TIunitylevelto find suit3.ble vJays of :n'oviding assistance in , , . '.. -. .' .,-.. . ,. this field.~For, by relieving the Member States most seri,ously affected by, , . T~e sc~lehigh of unemployment theeunGm)10y.nen~ of the. p~obleDs buclgetp,ry~~reiltly burdenfacing such unemploymentthe Member States impE,es,w~'rants fFr'cher :pro- , ", an att 8ffi;:Jtgress E,t couldCommunä bety made 1evel towardst 0 :find placing su it ab'l moree Naysequalof emphasis :Jl'oviding onass the Ls+anceobjectives in of

this field~~ll,t Yor. emplojTIentandby ~elieving pric0thestability. Membar States most seri~usly affected bYi high unem~üoyment'of the buc~ei"'x;:r bUl'den such unempioymr:.mt impEes, fL7:dher ';)ro- In ~he p~st, some unemplo~nent could be attributed direo+'ly or indirectly to the gress oould be made tor."ards p lacing mor-e equal emphas'i.s on the objedives of abolition of tariff ~)rotection. Certain regions , in particular those with declini~~c,i!' ." ~~ll,emJlo~TIent~~d )rio~ stability. ; industries, have, been subsequently affected b;r the :need for economic:tntegTatio:J.. - . .. . . In ,the paaInt additio!!, , some unemplo,ymentthe iradual oould ch?:.hgeover be attributed to .floatingdiredly ,~xchange or indirectly ratés','th~i!".to the ir;j:plicat1.G~s aboli t fonforof thetarif!'calculation~)rot~ction. of costsCertainr'egions, c.nd their effectsin par-t oncof1p~tiLoular those ti venass with havedeo1i11i'::.~.p'.: :;Ùso been

,e 1'~.J...... ;t.. ~ ä ndus tr-Lesreflectèd , have been in thesubsequently employwentaffected structure.by the However,nced f'cr a CO!I1.'Tlunityeconomic resjonsibHity~nuegra~J.c:::1. as \:'! >'> In adda.t regardi:1i on, thc'unemploymentgradual changeovcrhas beento ackqowledgedfloating exchange only torates'. a limited,'thei!' extent",iorilic'lt:c.r.s mainl;y- in tho

for ,. theform ca.lcul.at of i.¥'3sista..'1oei.on of casts grantedend ~i'leir by the'e'f.focts Sooial.Fundo~ 'coD::;e"ti for tivocationalven.ssa have retraining,;:lso beei.l and re- . \. . . , , , i' roflcot.eddei)loyment.in the emplTheoynerrtentire structure.oos,tof unemploymont'bcane.fits Hm'lever, a Oommunity inres)onsibj)i the striGtty senseas ~s borne :-. . \-,! by eraployers and employee8 in each Member St~te. r-egar-da. '1.m,employmenthas been acknowl.edged only to a Li rrdt ed, ext errt , ffi3,ilJ.l;y in +ho ~ . .' ' by ,]\md form of, Ginsistancetua~ion grant9d led thethe Ch~0':X,,11 Social~. for vocatjonal retraining and re- This si r ~ i I , r':". to e;x:amine possible ways. of introduct.']1gI " \ ~ deployment.a CommunityThe entire sohel~eco~t for -of ,~.nem~)loymentunemploymoni;bwefits tenefi ts whichin the wouldstrid" 'besense orga.:;'1i.zed~8 borne at C?mmunHy by enployers and 8illployeeG in each Mamber St~te • . ~-' level. The aim of such a scheme. would be:

, This si tua~ion led +he GJ..~';xp.'~ ~,! •...,. to exami.ne poss IbLe ways, of introduct~g to help to reduce structural" and~ regional imbalances through tra:;:~sfers of incomo a Comrrrunity SCheI1l8, for \mem~Jloyment bsnef'Lt s \ihich wou1.d oe orga-ai,zed at CommunH:T e from areas with low structural unemployment to areas wi th highs-tructural un.e1!\rJ.,':r..~ level. The of suoh a scheme would be: raent.aim to help to reduce s-tructural arid regional imbalances through trc;·~sfers of ir!c·omo :from ar eas with low structural unemployment to ar-eas wi th high s-tru,ctural une-E'.':'!J,,"r,,- r.::Ient.

l 43 / 140 20/10/2014 ';"2 * ! II/675/3/74-E fin.

- to gu~antee une3ployed persons in the Comounity ~ cornman minimum level of benefits; ., ;"2 * ! II/675/3/14-g fine - to in~t~duce iù~ediate regional flexibility Inaking it )ossible to co~e with I' - to guaran+ee unenpLoyed per-sons in Conu:nmity a cornmon minimumlevel of I ch;mges in regional develci)j;Jentsthe and in the standard of living;

benefi ts; ~, - to help to give a visible expression to Community solid'rity; .• to in4irtlduce iuunediate regional flexibili ty making i t poaai.b.le to cope wi th to. allow,Member. States considerable freedom to ret:?in their )resent national changes in regional d0velciJr.::entsand in thc standard of living; schemes, which differ sharply as rega~dsthe institutions managing them,the help ezpressionto - to tolevelgive ofa benefitsvisible paid and the wayCommunity they are solid'rity, financed. - to,allow,Member States considerablo freedom to ret~in their present national In principle, the system should take the form of, a Community fund vrhich would schemes, which differ sharply~sre~ds,the institutions uanaging them,the be an inde?e~dent administrative unit with funds not channelled through the level cf benefi ts pai d and the way they ar-e finanoed. Community budget. Labour and m&~agGment representatives(for eX~2ler within In principle,the Standing the system Committeeehoul.d ontake Employment)the form cf; would a Oommurri, assistty infund the"ltlhich administration*ollid of thé _ be an Lndependerrtscheme. Generallyadministrative speaking,unH tha.a~inistratio~, with funds not channelled manageillentandthrough controlthe ~f the Cm~~ityfwld budget. wouldLabour have toand be managGment simple andrepresentatives(for efficient. ex~~ler within the StandingCommittee on Employment) would assist in the administration of thc Present situation ~~I 1 - .....- scheme. Generally speaking, tha a~inistration, manage~ent and control ~f the At present, 1hl!t national unemployment benefits schQmes are organi~ed,~ on different fund would have tq be. simple and. efficient. lines and, depending on the country, provide f0r government assistance, cooperation

••.•..•.....•.~Present situation•••• !si __ from labour and management or special unemployment funds. At present, thd national benefits achemea are organi~ed_~ on different All countries grant,unemployment in addition to bcnefi ts for the wholly unempJ,.oyed., benefits . \ linee and, . depending' on country, provide fQr govarnment assistance,". cooperatian in respect of short-timethe working resulting from a reduction in normal working . . . fram labourhours, and withmanagement the concept or special of short-time unemployment work fundsvarying , in meaningfrom one countryto All countriesantther.grant, in addition to bcnefits for the wholly unempJ.oyed,~benef'its , in respect of short-time working resulting tram a reduction in normal working hours, with the concept of short-time work varyingin meaning tram one country to e antther. ".../. ..

.. -../....

44 / 140 20/10/2014J - 3 *" n/:';'5/J!74-E

Bœ1efits are O:t!ly paid when certain conditions are met as regords the length

of em:JloymÙ:lt or innural'1ce du~C'ing a referel10e period"'T prier!~,.,,,I~!~L) to E;::1',;:;"plv;~rrb:;:r~.T' - 3 .l.. je, , )/.J {r-.c', The strictness of thGs(~ cond:L tions varies f:CŒn one country to anot'~l2~. Bonefi ts

Be~1ef·itsarA arepaidOti1.yafterraida whenwaitingcertaintimecondofi between+i ons are twomet 3':'11 ae S87enregC1rds dayst:1.e exce,tlenGth in Germany, ... of e:u)loymcmtBolgium,01' the im;~_ITa.nce J.Tetherlalldsdu~C'ing anda r-ef'er-once :.Derularktandperiod for cJ; pricrL.r.litedto u.;:':\

The strict::J.essand t,tTelve u! tlIGSe monthscondj.t excepti.ons in var-i Belgium, es frUll Franceone country and. Del1lna~.ck.9.to 8I_o-l;::-~::r:--. Bcnet::ts3enefi in ts Fral"loe ar e paid(assis'tanoe) after a waiting and ItoJ.y t.ime of are be+ween paid ontwo a j~'lG,t-rate2"::11 SG7en basls.dcys exce,t In th<,in other Germany, cù1ntf~es,

Bolgium.theyt118 arelJetherlalld.s caloulated and asDen.nar a percentagektund for ofcl: aL.r.lited refe:'ence period Tiic\gBorof'. bet"reen salary? three i'Jhich is and t'ilJclvedefinodinmcrrthe except variousinways, Belgium, wii.;i.1Fra.nce the earningsand DBntna.L'J:.·9_ ceilingsB0nei"::ts di:':f'9ring :'.::1 c:jI18îclerably.Erance

pa on i s , Ln tb-ci ot har es , (aflsistanoe)andThe perO'i:)l1tageIt::lly inare qï.lestioni.d rangesD. :tl;3.,t-l'ate ft'd.JJ 35bas% to 80 "/O. cou-rt ri th8Y ar e car cul at ed -1,8 a percentage cf a rofe:'8nco ',e.ge 01' aal.ar-y, v;hich Ls In all the coul1tries~ unemployed persons l'emain entiUed to family aUmmnces def'Lnod in various way3 ,tJ'ii.ll the earnings oeilings di~:fQring c;;tJ,s5.clerably. and to siG1messt insuranoe benefits in kinrl (see the comrJi3.rat:Lve tables concernil: ::,~ The per cent age in r.l";J.estion r-angcs fr'üJJ 35 % to 80 ;t. - t:'1'3 sodal security scb;)mes applicable i:a t.he 1,;18:;-;oerS cates of the Commi.2.Y:itY1 at In all thethe count.r end ot Les'this , unemployed annex.,! per-aons remain errt i t Led to famHy rd,lo,ia,nces and -to SiGLL'1eSS Lnsur-anoe benefits in ki.n.d (see the compar-ative table3 concern in; Tt~ choice of soheme ~ç:;IW~~'óI;.:;J:j,(' AI..op;,I",:_~~""",,~",*,,: th" soda} s8curity· echernea applicable in +he He:-überS!;a:tes of the Commuru, ty~ at situation above ii;is G'bvious the~,'eare oO:1sidn::':?ble the endGivenol -this -thee.nnex,l d.escribed that obstacles to the grad.'J.al achievement of a complete h3.rmoniz:,,'Eon of both unemp10~7., ment benef::.Ü, e,nd the way,tl1GY are i'i::.a."1ced. T:le llun:erous cli ffu:n:moes be'b';c~(:?n Given tr,ethesituation fir:::ü1cinG describod ar:r::mgèmentc above andi -t ben8fiis GbvioustG in that the v'?,rious the;.-e ar-a l\'Iem'":::,er~tatescons.i.drr-ab'l ema~r be obaüacl eaG1.UImlarizedto the graü'J.al as follo"rs:aohi evemerrt of a complete harmorri z.ati on of ()::;th unemplc~7.o ment beneJ': t s end the way ·tl1GY D.re:t'ic"a.·'lCed. T:le nU!i;8J~OUS c1i ffu)-b'11C8S bf.'ri;"jc-I:?n the oor:.siC:,erab1e gap betvieen the hig:1est 2.l1d low8st::Lve:::-e,ge l'onefi t: t11e fir:J1lcin:; ar-rangementc and benef'i, ts in the y?,rious l'iIem~J'3r ~tates may be th'3 e,;}1ount", spent by -the M0mber fItates to help fine"no8 ll~Gmplo;vmel1t ben9:Ci ts; e th.e sharing of the finmlCial burden between i'JOrkers J employe.rs and the gov0rnm"? 'F liS a first E:d;e)j a compa:rison should be Iil'1de oi' the 'I.rays in t'J:tJ,Ü:h l..ll1emp:',o;Y1Jl8j,~JG the a;nolmts spent by th8 1{0:nberf!b.1.tes to help f'Lnance unemp.l cvnerrt bel1ed 1;3; be:1ef'i is are fin'1.nced. in the vi'!.:rious Member states "1.-ndnJ.ao of the D'omd:."~.ion +he shar ing of {,he financial bur-den between t-,orkers t emp'l.oyer-s and t:he goverrimc 'ce; goV'er:Ü:1g the gr2Jlbng of such be11'3f'i ts, eYe.."l tllOUgh -this will be a 1'at.1'1<:3;',' long and EŒ3-cting taok. b6:1ef'its ar e f'ir:.:mced in '~h8 var-i ous Member states and eLno of the (tornd:, -~ion A trar.;3i t.ional solution reust, however, be found Hhic:h 'oould be implemo.'n:ted gover:Ü:1g the gr211tjng of such be!:9fits~ eY8!1 t~lOugh this will bc a r:1thr)::' relatively quickly, v.rhi~h w:1l not comeup aga~,:ni:d: a.'"(J~lç,PP:c8oiable ecoll)mic lang arid ez:.cting +aok, or ::.;olioial opposition, uhich will ':'lot oompromise tho etfor"J3 made elselJlwl'e

A tra::;::ition.alor the IJotentialsolution Itust ;fD:r;pr0b'Tess1 however , in be thof'ound futureuhich ai'ldooul.d wj:Üchbe ",:'11impl(:;mGn:ted "lot refJul t in relo.:ti veJy ~uickly, 1'Jhich w:ll not come up aga,~.11;:,..t a:-:J,'l e·PDl'eaiable econ.ent c ... o!' ::::,olioial oppos i,+i on, uhich will hot compz-omt se tho ef"tor-ts made else:..rtuY'e or th8 potential .L)::-:;P';:-<.;b-ress in tho future and wlüoh "{~ll not r-cau'l t in .8./..0

• ft ./ •• .,

45 / 140 20/10/2014 /.' .". --4-* II / 075/3/ (!:-'_~' r' 11D.. an i.ntol€!'able budgetary bt~I'è.en.

In an initial stage, it would seem more expedient to Rei up a Community fund foru.,;employrr.ent oenefitsfinanoed- 4 - *' by a COmI:1LU1itycont.r~_bution from nevi an intols!'able hudgetary h~I'CCl1o :.. reSSOUI'ces than to pool, if only partially, the revenU8 and expenditur~ of In an ini+ialthe stage,nationalit schemes.would seem more expedient to Rst up a Community fund .~ by coniribution foru~employrr.~ltIn a longer-.term benefits financ0d context, somea Cowj~~ity hal~moniaation of: -Che socialtrom n9W security ß0~6 reSBOU:::'C3S to if €."qJenditvre andthan bencf'its. pool,con1,1 onlybe e:n;:risagGd,at partially, the least r-evenusas rega!'ds and their main. of features. thenational schemes. Very briefl;y, t'viTOtypes of soheme could be distinguished: In a long8r--.tel'ln corrt ex+, some harmorri aat ion o"! +he social security G0~S (a) a p:cc;crJ;iOl'ial scheme gu.arantee:Lng unemployed persons a certain income, and bencf'i-ts cottLd be enitisagGd, at lea.st as r-egar-ds thair main features. exp:ressecl as a pcroen-tage of t~eir' las't earning3; Very 1riefl;r, hm tYPG3 of soherne could be clistinguish€d: (b) a flat-rate scheme g~aranteeing all Q~employed persons a minimum level of (a) a pr-cx.r+Lonafbe:lefi soheme t. guar-ant ee.ing unemployed per-sons a certain ä.ncome, exp:;:,es 8 ed. as a per.cen-talTe cf t~eir'" Las t earniugs; -- BenDfi"ts (for example, two units of acoO'lmt eaoh day for 300 days = 600 u.a. flat-rato g~aranteeing (b) a a year)KGuldschem9 be granted toall all Q~employed regist.ered persons unemployed a mi~imum persons levelin the of. CO!J1II11ll1ity. be-~e:fit. This CommunHy ber:e::.'1 t would have to be seen as an absolute minimum guaranteeing Benofi-ts (forto all examp rnemploYI2.dl e ,' -hwo mlits p3rsonsof account the sa.'11eeaah 18'\TelMY offor assistance,such300 days == 600 assistAl'loe u.a. consti tu"t~r:.g. a year}wGulda ~irstbe CI'

This Oommun1.L>],emplo~lmenticy bel'.e:'::"it would ben?fi havetS' T..sl'J'tlc1 tQ~)e T(Ó'a. aeen '-!.hc' as !:1;2.hh~'J,aJ; an a.bsolute /è.1.dgcr.'t,minimu.m nd!!: ~o'\'guar'anteeing ~:';;;f3'O,j~,i!.t';Vbt-:j,{JI~-: to all unempla supplementa~y oyed p ar-sone the amountsame bringinglO'irel of overall asa tat ancej oompensation such aas i.at.ance to the d~sired oonsti tut~n<3 levelo a f'il'ßt tTa..>"\che cf v.Jelfare benefits. Cou..ntries which pr-eaerrt Ly grant mor-e gener cuo Uhder the proposed scheme benefits paid ought claarly not to exceed a person's unemp l oymerrt ben?fi ts. T"t'l't.ld trd-o. ~fH:>" n~:hh:--J,oJ;·~-c<-:.d8J;t•. ud"!!.: ~O\' Q:r...8 '0,j~;J,t'y bt1-.~;JI~-:,

1 ?st earnings < a supple~e~ta~y amount bringing overa.lloompensation to the d9sired level~

Undar the proposed scheme benefits paid ought cl~arly not to exceed a personfs .../.0. e ... j ...

<-<-

46 / 140 20/10/2014 J , , ...; 5 * II/615/3/74-E fin. ., '.:' . '. ,~ . 1 . ,~," . -. ~..,,: ,,\,~:,..,:;,;';-~ (,.', ";'.~"_..,': :'!"., ;t;',;:~.ot,,{.,f~'''' " ..' In a second stage, the sohome could be expanded by combining the flat-rate

~ ., ""ç'.' scheme with the proportional scheme: for example, 3 u.a.- -".. ';:...per ". <' day" plus 10 % - 5 *- II/675/3/74-E fine of last "et~nings.., .~ ,

.. '...... In a secondIn a,:m>.oredistantstage, thc soheme third could S'tage, be a expanded uniform by Community combining soheme the flat-rate will ha,ve to be

scheme wiestablished..th the proportional soheme: for exemple, 3 U.3.. per de,y 'pl-;:;'~ 10 %

cf laste~rnings.' ,. FinanciJ1ß: In areor-e' tt1.stant third: ß'tage, a wliforrn Communf ty scheme will have to be As regards. the financing ofbeJ;1efi ts by a spe.ci~l Community fund" the Gzr01.1P.1 established. ' considers that a levy on employees' wages and salaries is preferable, Fi.nanoi~ for example, t,o the allocation of rece~Dts from VAT.

AB thc f'inancing ofbepefi ts by a spec i a'l fund, the G!\o01JP'1 regardsA direct. tax on, wages and saléj.ries whioh, ~sCcmrnunityborne p:1rtly by employees and' -, " . consp~rtlyi der-s by thl1t employersa levy andon cmplo,vees which appe~st wages on'theand salaries wage QI'salary is preferable, s]P 'as a direot for eXnt.ained in the tables I; II and III-.

" - (1) Onthe ba~is of the various ,roposals concerning the mechanism and amount of 'Communitybenefi ts, a ~1'ograrnmehas been a.rat-m up whioh gives tho r esul, ts ct;JUt,3.inedin ihe tables I, Ir and III'.

47 / 140 20/10/2014 ., - 6 * - II!.675))/'74-E fin. ~ ,,' . , I <' I ~,!,!ez:i~~~h~~1~gi~,:Lr~~£~;:~;~"#:~~!~~~~\£~*J?ro bI ems (ä) The unemploy~' ,,

, ~' .; II/675j)!74-E tin• :... Although all the Community countries have statistics onr e~mployment~! . and Ul~employ- l?lfJ:iri2lß4I:t1hO~WS#l.ä~Sß:2g!!1=;;:Jl~~,.12roblems ment, it has rarely proved ~ossi~le t9com~are, national statistical series !:!' (a) Theat unemploytc! Community .'. level since they do nothav'e a.VJ.Y oommonmethodological basis and are built up using pr:i:ciples, definitions and reference dates which vary from Although all the Community countries have statistics on employment and unemploy- one oountry to another. Differing bodies of legislation preönt any comparison merrt , it haa rarely proved ~ossible t9. compar'e national,statistica,l series Pt: unemployment levels. Furthermore, certain phenom~na, cannot beanalysed because at Community level sinee 'they do not have ~~y~ommon m~thodologica~ basis and there are no data for some countries. are built up using priciples, definitions and referenca dates which vary from one countryThe figuresto another. given Differingin Tablebodies I_Unemployed of legislationA-are annualpre~nt estimates any edmparison prepared by the Pt: unemploymentst~tisticallevels. authoritiesFUrthermore, in the certain Memberphenome.n3.. States. In.mostcannot countries,oe analysed. these because estimates there areareno dravmup data for bysome the,eountries. national statis,1ïics ins.ti tutes; in Belgium. they are ,the responsibili ty ?f the Ni.nist;r'y of Labour ané,l in the Uni ted Kingdom of the Depart- II.~ The figuxes given in Table I-linemQloyed A-äre annual, estimates prepared by tho ment o~ Employment. st~tistical authorities in the Member States. In most countries, these estilnates are dra\'ll'lThe.up conceptby +he. of national unemploymentstatis.:j;ics has been institutes; defined in asBelgj:wn. follows:they a person e..rethe ~ho,during r~sponsipilithe referenoety ?f the period,Minist;ry wasof jobless Labour and or, s~ekingin the Uni employmentted Kingdom.is oonsidered cf the Depar-t-« to b.e ment of unemployed..Eln::üoyment. This group inoludes not pnly :?ersons who are unemployed following the loss of. their previous 'job. but also persons seeking a JOD for the first time. The conoept cf unemployment has been defined as folIows: a person ~ho,during tho r ef'er-enceA seoond perd.od, source was ofjobless unemploymentor seekiug d.ata isemployment the monthlyi.s conai statistios der ed to onbe the n~sber of unemployed.unemployed •. Thi.s gr registered oup inoludes at no't thepnly nationalper sons employment who ar-e exchanges. unempl.oyed Thefollowing usefulness of the lasstheseof, their statistiospr-evi.oua depends job ..but on also the network persons ofsee.king employmentF.l, job exchangesfor the first and the time_ attitude of: workers to registration: a.rid on irl1hether' it' is' in their'interests to be registercd. A secend souree of unemployment dat a Ls the monthly statistics on ihe number of Since the activities' of' the employmen~ exchànges are governed by administrative unemploycd reglstered at the national employment exchanges. The usefulness of rules and statuto-ry provisons vlhich dif'fer from one country to another, these these statisties depends on the network cf employment exchanges and the attitude e statistics cannot be used for a oomparison of unemployment levels between countries of'woz-ker-sto registration and on ~ihether' it·:l.8 in their' interests to ,be registo:red but solely as an indicator of cho~ges within a. oountry over a given period of time, Sinee the activities' of the empl oymenf exohanges are governed by administr3.ti~,e rules end statutö~y provisons which differ trom one country to another, these statistics cannot be used for a comparison cf anemployment levelsbetween countriBS but solely as an indicator of changes wi thin a country over a given pariod of tirtf;,

48 / 140 20/10/2014j -,.,»

7 * - II/675/3/74-E fin.

Any person without employment seeking employment and 'registeï-cd at an eaployme:at exchange i~considcred t9, b,e :u.nGmplo;yed. The relQvant figures 7 *- II/675/3/?4-E fin. are gi veIl in Table I-unenployed B. Any per son wi thout omplo;yment secld.ng emploY!1'lcnt and registel'ed at an A third source of information, wh~ch was created in OrCfr to fill the 5~PS '... e:uploymeat oxchange i~90nsidor.ed t.9 be UUQmpl.o,yed. The r-elevant figures mentioned above, is the Community, sample surveys ,on the work labour" foroe . . I . ar e gi von in T.o..bleI-'.lllonployed B.. ' (inoluding the unemployed) oarried out by t~e Statistical Offioe of the - .: A third sourceEuropeanoi inf:Jrma.tiCln, Communities~1hich (since'·io..S Octoberoreatecl 1960).in on> r to fill the gaps

mentioned above, is the Community, sampie survcya on. the work 1ab0 u.I' , force In short, the ooncept of "unemployed!' is consid()r~d to include an:! pe~son: (including the unempLoyed.] carried out by thc Statistical Office of the who is ",Jithout employmel1t but has v'lorked previoÙ.sly and who, at the time ~ropean Communities (since Oetober 1950). o/"tho survoy, is seeldngpaid employment; In shor-t, thc concepf of "unempLoyed" ia considcred to Lncl.uda any pe.rson: who has never been employed and is seeking a job for the first time; who is vIi thout employment but has vi"orked pz-evi ousl.y Md who, at the time who is not em:s>loJred at the time the survey, but who hasa:tready ma~e -af.thc survoy, is seeldngpaid employment; of' the necessa,ry e..rrangements to té'lce up employTIent at a 1ator date; who has never been empl oyed and is seeking a job for thl'l first time; who h~s been dismissed tcmporarilyor for a~indefi~itG period, .rithout who is not emyloyed at the time oi' the survey, out who hn.s .a1read,y ma~c remlU1eration; the necesaary arr-angemerrts to t'"!..ke up empLoynerrt at a lator date; The la.test figures probably provide the best picture of the true 'lL.'18rr:ployment Who h~s been dismissed tcmporarily 01' for a~indefi~itG period, ~rithout situa~ion; however, the results of the 1973 surV3Y are not yet kno~m. remuner-at i.onj Clearly, in any of the &Yiè~~ proposed, there v.rill alw3.Ys be, the problem latest the of thc true~~e~ployment The offigures find:Lng probably a consist:mt provide definitionbost pictlITG of an unemployed person Hhich can be si tua.tion? applied,however , v.rithoutthe r-esu'l distinction,ts of the 1973in allsurvoy Member ar-e States.not yet knoun ,

ClearlYt any of +he §((l,:"Bhrl::"E pr-opos ed, there a.1w:?>ys be, the pr-ob'l.em in(b) Bel1Afi ts "lill ~,._"","",,,,.::.o:>'-==- of f'ind:Lng a consist 311t definition of' an unemployod person i·rhioh C~Ul be AS:.':r'egards unemploymcnt benefits, the St:ttistical Office of the European app'Lä ed, Ni. thout distbctiont in all Meinber Sta"t es. - Comm'ù".:.1iti9S has at i ts d.is~')osal the functi on2,1 'braakdQ1m of wGlfare benefits as used in the social é\CCOunts.The data arc dr$Ot-mû'QW the accounts of the As::':rc/S"2.rcls nation3.1unempl oymerrt 'bodiesbenefi authorized +s , the toSt.?_tistical '.)<.1ybcnefits Offi()e to bCl1of~,ci,;;:,!'ies. of" thc Ehropean :Jherc these Comm'~~iti9sbodies ~~S atare its also di3)osal responsiblethe ~~ction~l for coveringb~Gatdm·m riskscf otherw81fnre t~1benofits unemployment, the as used in informationthe socia1 2CCOuntS.is thereforeThe ond3.ta the ar-o fineJ:lOingdrst-m ft'ow. of totalthe aocourrbs expendi turo.of thc For, ""here nat i onal bod.icontributionses authorized areto designed,ay bcmefits to coverto bcn8f~,ci,;;:.rie3.several risks without'~lhercthese distinction and bod'ies ar e 1"horealso ros,onsiblepublic subsidies for cover supplementing risks thesec.tlv3r contributionsiJ:taJ.l uncnp.Loymcrrt up to , thethe amount of infor!il.ation benefitsis therefore paid,on each thc offini:?noing the t~o m:J.inof total types'i)Xj)ondi of revonue+ur-o, isFor, rarely"There allocated, contributionsin ii10le are designoQ or in part, to cover to a s0veral specificrisks risk.without ~1is m~cesdistinction it impossibleand to determine 1.,horo pub'l ioYlhichsubai.dä type esofsupp'l revenueandement thesewhü.tcontributions proportion ofup it to has the goneamourrt il1tOof financing un-

benefits paid,employment each of benefits. the t~o ffi2in ty?es cf revmnU0 is rarely allooated, in whole or in part, to a specifio risk. This ~ikes it icpossible to detcrmine which type of' r-ovenueand l

49 / 140 20/10/2014 .'~.,l';

~ 8 * - II/675/3/74-E fin.

Three points oan.:',be made:

There is no problem in oountries where the institutionsIrj675/3!74-E conoernedtin. arc in ... any way specialized. Tnis is particularly the case in Franoe. Threc points can:~bG made: The same ,can bo said to a to Italy, BelgiÙ!I1 and Luxembourg, given the .... pp~'y' ~~ Thore i8 no problem in courrtr-Les where the iusti tutions conocrned ar e in relatively low volume of benefits which 'distort the picture. any way specialized. Tnis is partioularly thc oase in Fr~loe. The situation is quite different in a few member states and espeoially The same can bo said to a p~ly to Italy, Bclgium and Luxembour-g, gi von thc in the three acceeding countries. In thec~se ,of the latter, in particular, relatively Lowvolwne of be~efi ts wh'ich 'distart thc pictl.U'c. social insurance oovers,' for example, not only unemployment affecting The situationemployees, is quite but 'also different pi:rt of"the in a few sickl1essand roenberstates old-age and espeoially risks of the entire in the threepopulation; acceeding it goes countries. without In saying,the eGge therefore,,of the latter, that itin wouldparticular, be risky to

soeial insuranceput forvmrd covers, ,estimates for examplcand tot allocat~not only aunemployment priori to unemploymentaf~eeting a proportion employees,of the but oontributions'also pt:rt of,the fromsickuessand both employersaId-age and employees ni.aks of thc and entire of certain II population?finanoeit gaes fromwithout the government.sayi.ng, therofore, that it wou.ld be risky to put forvmrd .cstimates and to allocat~ apriori to lli~cmryloymenta pro~ortion It must also be pointed out that the heading ""ù.nemployment" in social accounts cf thc contributions both employers and emplayees and of oertain includ.es, in additiontrom to unemplc;yment benafi ts, other benefits such as compensatory finance f'r-om the governmcnt , allow~nces, supplementary benefits and even vqcational training benefits for It rnustpersonsalso be without pointed ...lOrk. out that the headi.ng 'f..unemployment" in aoc i.a'l aocounts Lnc'Ludes, in addition to unemplcymerrt benof'a ts , other benefi ts such as compensatory al1owcnees, supplementary ba~erits and even vQcational training benefits for persons vri:~hout wor-k,

/<.

50 / 140 20/10/2014j 'e r. t'

II/675/3h4-F~ Tableau I II/675/3h4-F-E Tableau ITable I NOMBRE DE CHOMEURS - mm.1PLOYED PERSONS Table I NOMBRE DE(hommesCHOMEURS et femmes)- mm,~PLOYED(menPERSONSand women) ~hommes et femmes) (men and Homen) en milliers an mi11iersin thousands in thouaands

Allemagne France Italie P~s-Bas Belgique Luxemb. Royaume Irlande Danemark EXIR-9 Allemagne France HaUe P8\\'s-BasBelgique Luxemb , Royaume IrlandeUni Danemark EIJR-9 Germany France Italy Netherl. Belgium Luxemb.Uni U.Kingd.Ireland Denmark EUR-9 Germany France Italy Netherl. Belgium Luxemb. U.Kingd.lreland Denmark ElJR-9 Ch8meurs A.l) 90 92 0 503 56 28 2272 1967 1 459 365 679 1967 Ch8meursUnemployed A. ) 2) 459 365 679 90 92 0 503 56 28 2272 Unempl oyeCh8meursd, 2) B. 459 196 1024 90 101 0 . . Ch8meursUnemployed B. 459 196 1024 90 101 0 •• Unemployed1968Ch8meurs A 323 428 684 84 110 0 542 60 26 2257 1968 Ch8meursUnemployed A 323 428 684 84 110 0 542 60 26 2257 Unemployed B 323 254 961 84 119 0 586 58 39 2424 B 323 254 961 84 119 586 58 39 2424 1969 A 179 337 655 66 88° 0 513 56 26 1920 1969 A 179 337 655 66 88 0 513 56 26 1920 B 179 223 887 66 98 0 581 57 31 2122 B 179 223 887 66 98 0 581 57 31 2122 1970 A 149 363 609 56 76 0 556 65 17 1891 1970 A 149 363 609 56 76 0 556 65 17 1891 B 149 262 888 56 83 0 618 65 24 2145 ] 149 262 888 56 83 0 618 65 24 2145 1971 A 185 456 609 69 75 0 724 65 27 2210 1971 A 185 456 609 69 75 0 724 65 27 2210 B 185 338 1038 68 83 0 799 62 30 2603 0 B 185 338 1038 68 83 799 62 . 30 2603 1972 A 246 509 697 115 92 0 806 71 23 2559 1972 A 246 509 697 115 92 0 806 11 23 2559 B 246 383 1048 115 101 0 886 72 30 2881 ] 246 383 lQ4.8 115 101 0 886 72 30 2881 1973 A 273 450 668 117 96 0 576 66 21 2267 1973 A 273 450 668 117 96 0 576 66 21 2267 B 273 394 1005 117 106 0 630 67 20 2612 B 273 394 1005 117 106 0 630 67 20 2612

~: 1) nombre de ch8meurs selon les séries nationales, moyennes de l'année Note 1) nombre deNumber chemeurs of unemployed selon les series aooording nationales, to national moyennes series, da yearly l'ann~e average Rumber2) ofpersonnes unemp10yed sans a.ccording emploi :bscrites to national auprès series, des bureaux yearly average de placement, moyenne mensuelle 2) personnesUnemployed sans emploi registered t8crites at aupres employment des bureaux agencies, de placement, monthly average moyenne mensuelle Unemployed registered at employment agencies, month1y average Source : OSCE : Statistiquessociales2/1973 - Population et emploi. Souroe : OSCE : StatiatiquesSOEC : Social sooiales Statistics 2/1973 - 2/1973Population- Population et emploi. and Employment SOEC : 500ial Statistics 2/1973 - Population and Employment

51 / 140 20/10/2014 I I

II/675/3/74-F-E Tableau II .octro:>::~~ .. , Com~L~ g~Ob--al d es organlsmes'a 1t re prlnclpa1 ou secon d' alre, d es pres t at. lons en mat. lered e c h8 mage Table II II/615/3/74-F-E Overall figures for payments made directly or indirectly b.y public millions d'unités monétaires nationales authorities with respect to unemployment benefits millions of nationalTableau monetary II units octro~ant Comp~~ global des organismes- titre principal ou secondaire, des prestations en matiere de chamage Table II Dépenses Allemagne France Italie Overall figures for payrnentsmade directlyP~s-Bas er indirectly Belgiqueby Luxemb.public Royaumemillione Irlande Danemark d'unites monetairee nationales T'~xpenditure Uni mil1ions of national monetary units authorities withGermany respect toFrance unemp10Yment Italy benefitsNetherl. Belgium Luxemb. U.Khigd. Ireland Denmark

Depenses1910 Prestations socialesAllemagne4814 France Italie1369 P~s-Bas235,8 Belgique 1169,8 11631,5Luxemb • Royaume 5,2 3269,8 Irlande Danemark 90,8 11819,5 1910 Social benefits Expend ltUTe Uni dont rattachéesGerma.ny à la 1123,France Italy1369 Netherl.113,3 !lelgium143,3 10192,4Luxemb. U •Kirigd.1,2 Ire343,3 land Denmark11,8 568,8 directly linked to fonction ch8mage pro- unemployment as prement dite such : 1970 Prestations sociales 4814- 1369 235,8 1769,8 11637,5 5,2 3269,8 90,8 8 1970 Socia1 benefits nombre de personnes 17 19,5 number of indivi- 114 124 11 18 0 dont rattacMes~ant reçua 1a des alloca- 1559 305 . 24 duals who received tions de ch8mage1723· 1369 113,3 743,3 10792,4 1,2 343,3 11,8 568,8 directly 1inked to fonction ch8mage pro- unemployment benefits (x 1000) unemployment(x 1000) as prement dite such: nembre1911 dePrestations personnes sociales 12199 1661 210,1 1917,1 10229,3 1,4 3893,9 106,9 18223,2 number1911 of Social indivi- benefits ~ant regudont des rattachées a11oca- 114 à la 124 1559 11 78 0 305 24 duals whodirectly received linked to tions defonction ch8mage ch8mage pro- 1121 1661 233,0 826,8 9441,6 2,6 511,1 13,2 1099,9 unemploymentunemployment benefits as (x 1000) prement di te (x 1000) such : nombre de personnes 136 141 1102 23 18 0 412 58 30 Prestations sociales Sooial benefinumber ts of indivi- 1971 ~ant reçu des121 alloca-99 1667 270,1 1977,1 10229,3 7,4 3893,9 106,9 18223,2 1971 duals who received dont rattacheeations dea ch8magela directly linked to 1667 826,8 2,6 unemp Loytaerrtunemplcyment a6 benefits fonction(x ch6mage 1000) pro- 1727 233,0 9447,6 511,1 13,2 1099,9 (x 1000) prement dite such : nombre de perSonnes 1)6 141 1702 23 78 0 412 58 30 number of indivi- a;yantre<;udes1912 Prestations al100a- sociales 13611 1910 293,4 2880 16541,0 2,6 4418,3 125,8 20426,1 duals1912 who Social received benefits tions dadont ch8mage rattachées à la unemplcymentdirectly benefits linked to (x 1000) fonction ch8mage pro- 2010 1910 229,0 1306,0 15545,8 2,4 528,0 16,3 1075,0 (x 1000) unemployment as prement dite such Total 1972 Prastations sociales 1)617 1970 293,4 2880 16541,0 2,6 4418,3 125,8 20426,7 1972 Soeial benefits en millions U.C. 355 363 311 320 0 1261 14 3304 in millions of U.A. dont rattachees ä La 515 39 directly linked to fonctionnombre ch8mage de pro- personnes2010 1970 229,0 1306,0 15545,8 2,4 528,0 16,3 1075,0 unemploymentnumber as of indivi- prement dite~ant reçu des alloca- 115 144 1161 94 0 431 68 30 such duals who received tions de ch8mage . Total unemployment benefite en mi11iens(x 1000)U.C. 575 355 363 371 320 0 1267 39 14 3304 in millions(x 1000) of U.A. nombre de personnes number cf indivi- ~ant regu des a11oca- 175 144 1761 94 0 4)1 68 30 duals who received tions de chßmage unemplcyment benefite (x 1000) ~ : Office Statistique des Communautés Européennes (x 1000) Statistical Office of the European Communities

Souree Office Statistique des Communautes Europeennes Statistica1l( Office of the European Communitiesei tie (t 52 / 140 20/10/2014 .~ i e re .

~ ~--- --'------" ---.----.-.--... DEPENSES - EXPEHDITURE Tableau III II/675/3/74-F-E ******** '. MONTANT TOTAL DE L ALLOCATION DE CHOMAGE PAR PAYS EN MILLIONS DE UC (1972) - 'r'otalamount.for.un:-mployment benef1.ts ______------_ ___ by country, 1n ffil1honsUA (1972) ---- = -= ------~_.-.- -- ~.~~OCTROI -- -,- - D - UNE - - ALLOCATION -- - ~ _. __ ~ COMMUNAUTAIRE - - FORFAITAIRE _.--.- -0----- _ ~.~ (MONTANT ~ ' FIXE ..~ PAR __ . JOUR POUR 300,_ ___.. JOURS) --..-._ __ ._. _ COi

53 / 140 20/10/2014 ./ . e (. ..'"

II/675/3/14-B UIERPLOYMEI1 .ISURARCE TABLE IY. 1 . -- .- .. ...- --... II/675/3/14"":-,. .-. .v.--. UIENPL6YMEIl .ISURARCE TABlEIY. 1 DEN!4ARK IRSLA'ID U 1'1 I TED KING DO:.! 1'1 E THE R LAN D S ta tIII c...lb w••.Stat•• rat 1 .hIlY 19~1 • EXISTlliG SCHEMES Unemployment insur~~ce a) Unemployment insurance Unemployment insurance a) Interim allow.~ce (opt iona.l ) b) Une~ployment assistance b) Unemployment insur~r.ce T ;.. n s N ;( .~ R K , R ;0: ., '1 [\ U N" I T E n f( r N G D 0 ~4 N E Tc)H Une:n»loymentEil L AN D 5 assistance

W}ISLATION zxrsrmc SCHEl·lES Unemp Lovmen t insurance a) Uner:lp loyment in "nranee Unemploy.nent insuI"ar.ce a) Interim a l.Loxanc e 1. First law (optional) Law af 4 April 1907 b) Une::tp loyme!1tLaw ofaasistance 1911 Act of 1911 b) UneOlploymenta) andinflurar:ce b) Law of 9 September 1949 c) Unerap Iovmerrt ass'i ~t("'':lended)ance c) Law of 10 December 1964 L::XirSUTIo,. on unemDloym~nt ::].ssigt ~ui ce 1- First 1"••. Law of 4 April 1907 Law of 1911 Aet of 1911 a) sud b) Law of 9 Septemb~r 1945- ?. Basic legislation Law of 1970 Social Welfare Laws 1952 - 1974 Act of 1965 (flat rate benefits) (a.r.lenderl) and Acts of 1966 (e~rnin"'3 relat-c) Law oi 10 Dece",,,er 1964 ed benefits), 1971 ~d 1973 and on une:'iolo;ym~nt "ss;."til..1 rCr':ulo.ti0n'1 thereunrJer r::~ ?. Basic 1egi s lat ion Law of 1970 Soeial lrielfare Laws 1952 - 1974 Act 01' 1965 (flat rate benefits) and Acta «r 196G (~::rnin~:Jrelat- fIELD OF Employed workers of 18 65 years With few exceptions, all persons Fl~t r~tp. np~~fits: all ~mployed a) and b) All employees APPLICATION - e~, bcnofit~) , Md 1913 and of age may be a~~itted as Qembers a.,;ed 16 years a..~d over employed persor,r..1971 Option~l cover for mar- c) Employees who do not or no rr.,{~~l..dfl.ti0n0 thereun~er to an unemployment fund under a contract of service or ried vlOm(~n lon~er fulfil the condit inns apprentices!J.ip. F:"rni n~;".i.rc] ot cd "",10] emE'nt: all required in order to receive emDloyees ~ed 18 years or over unemployment insurànce allow- ~'IEIJl OF APPL!CATION ~ployed W'orkel"'~ o"f 18 65 years ~'!it h (c'" eJCceptions, a11 persona }ll."'lt T';'!.tP. n('>~~fits: a11 ~",ployed a) and b) All emplovee s - and under minim~~ pension p~e Mees of age may be a.d.l1itted a.s me;nbers ~ed 16 YCiU'8 and over e::lployed perGnliS. üpti r,ot or no (65 for men, (jJ for ;;omen) who to an une;nploy:nent fund u:1der a eon"tract 0:'" service or rie~i ,,",·o;n!:o~ lQrH~er fulfil the ccnd i t ir,n!'l are receivin~ Îl~t r~te une~ploy appr-errt i.ce shd p , F:~rni r..;,,:;~n~12tp.d r:ll-;,n] e:nent : aU required. in o:-rler t o receive rne~t benr.fit and who had rAckon- aP,.:!Q 18 or over W1er:l~lo~..",entir;SUl"ance al1ow- emolovee" able e"rni~~syears of at lea~t L 500 aJ"d un:!er r.:inimu.":l. pension ~..o:e Mees in the relevant tax year (65 far ncn .• GO fo r- >;omen) vrho are receivin.~ flat rnte une:nplo.v TOTAL UNEHPU)Y!>!E:!T me'lt b'?n~:i t anol ",·ho h ad rl?ck:or:.- Conditions ab l e e"rnin,.",,, of a~ lea~~ •• 500 in the relevant tax ;\te:lr a) be. canable of work be capable of work - Main conditions - be capable of work - - To have registered at the employ- be available for work be ~vailable for work Inth an Qent exchange TOT~L UNm"iPU)YlillTT - 'be availabla for work - - - have signed on at the employ- - have si~ed on at the employ- em'Oloyer' Cond"i-tions ment office ment office - have signed on at the employ:nent b) ba capable of work, available office N.ain eondi1ione - be capab l.e of work a) - be ~~nahle- of loI,"ork be capab Ie of work To have registered a.t the emplo.y- - for and seekin~ work- be free from disqualification - be availabll> for work 'o'e "v~il,,'ole for work be .!1vail~,ble- for work I,rtth an ment exch;;,.nge - have livca in Ireland - for at - have signed on at the emp1oy- have si,o;ned- on At the "'!:1ploy- e!:::~loyer - least 6 mont hs ment offioe ~ent of!'ice have signed on at the employ:nent - have no right to ins~rance- b) - '00 o apab Le of work,t available office for ..r:d s8akin~'bencfiwork - be free from disqua1ifieation - have live.! in Ire1and for at Lea s't 6 1!I0nthB . F'orlOst of the M_er Stat.. - have no right to inS' urance benefi t

54 / 140 20/10/2014 II/675/3/74-E UNEMPLOYMENT INSURANCE DIl£ 1V.1 'n the CoIIIIIIAttyM er State.

GE3MANY BELGIUM FRA :1 c :: ITALY II/675/3/74-EL U X E X ft 0 U ft G UMEMPLDYMEMT iNSURAMCE a) UncmplQJ~ent inGurance UnemDloyment insurance a) Uncmplo,ymeni: as~::;istp..nce a) Une~plo~e~t insurance Unemployment aGsistance b) Unemployment assistance 0) ~Jpplementarv unemnloyment b) ~(ceptional unemployment allow UIU' IV.1 (1) insura!1ce a."'1ces

., G E ;/M A NY ~ LG I U ~, F R A C I m A LY a) and b) 16 July 1927 '>28 December 1944 .- Decree IG. of 19 October 1919 LUX LawE ~l ofB 0 6U August!l G 1921 a) Unemp::"o;;'7ient Lnsur ance Unercp Loyment ir~s'J.rance a) Unc:t.[Jlo,i"tr.:en"t aS!jis-:p.11ce a) li,.,e",,,loy;;ocilt ins'J.rance Uneap l.oynent ao st st ence b} Uncr:1ploy:nent assistance b) Su~plement~r~ unem"lo~ent b) R-::ceptionr),l unemplo:yment aI Low insuz-ance (1) ance s k~w of 25 June 1969 Decreè of 20 December 1963 a) L.w of 11 Octo~er 19/;0 ~~d a) ~~db) Dccree-law of Decree of 24 !~y 1945 and (amended) Decree of 12 Karch 1951 4 October 19j5 (several ~~end- 17 December 1952 0) flp;:'cemrnt of 31 Dcce,ihcr 1958 ments) 11) arid b) 16 July 1927 28 Dece::>ber 1944 Decree 1~" of 19 Octoher 1919 Law af 6 Al.JgU,;t1921 Ordin:1.l1ce of 7 January 1959 Orlin.Lnce of 11 July 1967

a) All e~ployees (industrial ~~d All employees covered by social a) All emnloyees a) All emplo~ees t..'1:plo~'ed person~ except for cer- non-industrial staff and workers securi ty 0) All e'!1ployees bound by a con- b) Workers in certain c~tegories tain categories, for cx~mple, La••. L.,... af 2S Jurteundergoing1969 vocational training)Decz-e e af 20 Deceffiher 1963 a) of 11 Oct,,"ocrtract of191;0 service~d to emoloyersa) "r,;:! 0) Dccrs9-1awand areascf who do notDecre..::- fulfil of 24employees~fuy 1945 inantiágriculture b) All employees (a!lle~,ded) Dccree cf 12withinK'irch theFl51 scheme's fieldI) October of 19~5the(~ever,"1l conditions~'"t.tend•.... required17 Decp.mber for a) 1952 b) !~p,'~cem(\nt ofapplication31 D....~r:ei:l~r:lr (1)1958 ments) Ordin;"!1'!cc of 7 January 1959 f)rlin",,,c8 Gf n .r'JIV 1967 ;,,) ,,) All enp lcye e s (im!"3~rial and A.ll erep Loye as covered 'oy social All es-;->lovees a) t,ll "::J~la::ccs ::..-rr.nloyed ;J-:;!rsonr: excep t f'or c er=- non-d ndu ct r i eL s"taff and ",orkers security b) All c'!1nlo.ycp.sbcund by a c!Jn- b) Horkers in c ert atn cateG"0ries tain cat€gorie~t far cxotllple, under"goir", vocat i.onaL training) tract cf service ta cmp Love r-s and areas who da r~ot fulfil e:nplo:>,"eesin ii,griculture b) All emp Icyee s within the achone I s tield af the conditions required. for a) application (1 )

a) and b): To have registered at To be fit for work and registered It) ~~db): To have registered at a) ~~db): To have registered at To have registered at the employ- the employment exchar~e as unem- for employment the employment exchar~e the employment exchange ment exchange ployed and to have applied for benefit

"') and b): Ta have regist sred 8t Ta be fit far work and registered ~) and b): Tc have registered at a) azid b): To have ::-egistered at Ta have registered at thc t:rnploy- tne emp lo.vment exchanze aa unem- rar employment the Illllp10;l'T1lentexchange the emp Lovment exchange ment exchange played and to have applied far benefit (1) Fr&~ce: Originally based upon contracts, this scheme has in practice been extended to cover all employees except for certain special categories, such as persons employed as domestic servants.

(l) Fra"lce: Originally based upon oontracts, this scheme haa in p~actice he an extcndec to COver all employees , except far certain special~( categorics, such as persons eillployed aae dOmestic 8ervar~S. le c.- 55 / 140 20/10/2014 (r e r. .'

UNEMPLOYMENT INSURANCE TABLE I'. 2 UNEKPlOYMENT.. --.•...,....•...-JMSURAMCE .... II/675/3tT4-F TABlEIY. 2 ----- • II/675/3/74-F t.~ .....- ....~, .' -.. -..-..- In tbe r-untty "_er Stabs Cd1."' ••la'1' .•. PSN'!4ARK IR;:; L ~': [I 'J ~ITED KING DO:.! NETHERLANDS IRr. L 1"1, ': D u ~ I T F. D KIN G D 0 ~ N E T HER L A N D S retn - Qualifyingperiod - have completed a minimum period s) FInt oAnefit Pl nt r,~.t0 li~n~fi t~ a) At,least 130 days of pa~d em- - Qualifying period have co~pletedof emploYffienta m~n.mum periodof 2ó weeksa) duringFI~t r~t~- n~nefit20 cO'1tributions po.id Fl;-,t l"-='!.t0.h~Yl~fit~- 26 em~Ioycd ro.te contributions,,) A.t,leastployment 130 daya in of thepam s&~ee;;l- occup~tional paid since entry into insur~~ce of employrr.entthe of 326 precedingweekG ~uri~,g years - 26 cQ~trib~tio~~- 48 contributionsp~id p8id- or 26 crediter.1?') loycu r,'lte ccnt r-Lbu t i ons plo,yment insector the s~~e during occl1p~ticna1 the last 12 months the 3 preceüing- 12 months years of insurance with4& co~trib~tion3fund ed durin~ p3id the or credit contributionp~id ye~rsi~ce- 50~ntry employedinto in8~!'ance rate contri1:ru.tionssector uuring the la~t 12 months - 12 lilonths cf insurance with fund ed duri~~ the(1) contribution precedir~ the ye~r benefit- 50 yearernp lo'veri p~idr-at e orco~tri:':l.!.tio!lS credited in the rele- lJ}ar.d c): 65 days óf paid employ- contribution (1) preccdir~(1) the hcncfit yc~r p~id ar crcaitedvant in thp. re1e- :vear.JJ1ar.d Reduced cl: 65ment days during bf paid the empley-last 12 ":lonths or (1 ) If le~s thqn 48 but notvant less contber.efits r-ä.bu+Lcn vif ear-, 26 Rcduccd- 49 contributionsment during forthe thelast last12 ,;:;:onths 36 day a er(1) If le~s thonthan ~8 but 26 contributionsnot le8s bec,efits paid or if p~id?G - or 49 creditedcorrt r-ibub i cna for the last 36 dayc (1) tt,~ 26 contributionscrediteù, a p~id reduced or benefitn~id oris creditedE~rnln~s-r~l~ted ~uonlenent cr cd it.cd , apayable redaced benefi t is ~"lrrli::'":.t:::'8-r":'l1~Tit~t!?'d le to!=:lJDnl~nent flat rate benefit and had P~~-rel~ted benefit reckonable earnings of at least payable "'1 Title to fia~ r~te benefit ~~d had ?~~-rrl~tr.rlbc~r.~ttP"."[l':Jle"n,1er the s'l111econdit-reckonab1e I i:.earnings500 in theof at relevant least tax year p=vr.b Le cl:l,lerion~thc a~80::]0 foroond sickne~si t= Ibenefit f. t relevant t yeax b) 500 in he ax ior.~ ~s for 5ickne~3- benefit b) a) and b): 68 ,yo;arsof age 65 - Maximum age - Ksuimum. age I a) and b) Hone Resources ,i b) In,q,à.eq1late resources c) Reduction of ;:tllo".l~.ces in trr.; Resources -0) Inadccuat c r esour-ce a a) and b) lione c) Redu c-ti on cfevent ;üla~-J~.r.:e~of supplementary in trr~ inco~e event of supplement~rv i~co~e I F1..d: r.!~.(\ "aiting period liane fo'l;lt rl!:~ hf'no!lt: 3 d-1..ya 1v"'nf"fit: 3 d:"J.:(8 none ;hitir~ period Fl~!.t r-"l!:0 b"l1Q(,it: 3 d,l.,ya :;one I lione P~v-rel~t~n benefit: 12 days F;."!.rni.r:r~s-rclQ.ten F:ui'rolem.!nt: P"'cr-reht0Cl ,'en0fit: 12 davs ~."'!.rr.""'r..~8-rcl:::!.ten12 da:{s R;mnler.1-JT.t: 17. G,"l:":;

B~1.':FITS F,~-:O:FITS Days for which allowance is 6 days IJ.week 6 d>_ys a week 6 deys a week 5 days a week D~vs for whichgra.'1.-:ed allowance lS 6 days a weck 6 d~,.v" .., ,;eek grrL.'"1.ted Duration of payment Not more th~~ 2~ years a) I:,.sllr-'.~1r.~ F11.'l.t r:-lt.e l~t:'npfi t.R a) Interim allowance: 40 days a Li:71i:qj ta 312 drl.~/S ey.cludin..~ Duraticn cf p~ent Not mare th?."\For21, theye,,1's ins~red entitled toa) anI":,,,.:-,-qr-\~·.~(-!Fl~~tc ap~~fit F'l:::t r'-Lte.b~~pfi t~ a) I"tp.ri~ allöoönce:year, thereafter 40 d~~g a unemployr.1ent old-ae,e or ir.validity pension, ------Li:-:1i~p.-:1 t o 31.2Sundaysin(=d'l~/S cxc A~YIud periodi nz of interrup For the i~s~red enti~lcd to an f]~~LtP. ~~~~ritUnli:71ited if the claim='\.aged ye"r, ther" .•.f'terallo"ance unemp(2)Lovnerrt tion of employ~ent. A claimant re b) old-2,,'ie or it,validityor aged 67+pen limited si on , to 78 da,ys - Su..,.,da,'fS in a.nv p(~r"iod Q f i.n+er-r-uo 130 days a year - linli~,Hnd if65-óQthe clair.1',nt h~s p>idag at ed least 156 co~ a llqt'l811Ce (Z) er aged 67+in limited any period to 78 of days 12 months t i on of p!"1pl·:1>7.i8n"t~Qualifies A.forc l a aimarrt furth reer period of c) 2 years 6S-6B h~g p~idtributionsat least 156 c~~ b) 130 d~vs a yedr in an;y period of 12 months Ollalifies for312 a d"ya furlher "henpericd he hasof paidc) a fur- trib:ltiOTlG - Limitnd to 156 days if aged un- 2 years 312 deys whcnther he 13 hascontri1mtionsa while <1ork- - Gimit~d to 156der rl~ys 18 orif agedmarriedun- "omM de- paid fur- I ori" her husband t he r- 13 contin~ ri'lUtions for an\ntmarrl",d "01ll'1i". da- in~ for nnF.."!rni e~?loyer n~3-re 1 ~.to'>d RunDl ernent pc"!":d~ntan- h8~Limit0d huöoand to 312 days in other S~rr;in!!~-relL~mit pt~d toF=:'J.Dulement 156 days (excluding Sun- - Limit~d to }12c:asp.~daya in other days) P~v-r~l~t~d ~~nefit Limit ta 156 daye (exc1uding Sun------d"ys) Limit0d to 1~7 days Limitcd to 147b) A~~i~t:u:~e davs 'b) A~~itd:;."!.r("!-e Unlimited Aa_a Ur. 1imitrd. -...I._~ "'L~ .L • ror.st 01 thl5-Gay111 •• wee~. .,. Stal•• ~M Yetherlar.ds:~~r~e~s recelving the i~teri~ allo~ar.ceare con~idered to è~ still linked to the occupational sector. ~:~'~r~:;:~;:Tfietrade"or:':ersrecelV>~.g' cooperative,the assaciationsi,.,teri,., allo,.,~.~e are aathorizedaro con~idercü to grantt o thisce still al1o~~cc li~.]{"d for tc at h lor~cre oc cup period. at i ona l. ?r.erea~er sector. _orkerG ~~j receive be~efit for 78 daVR i~ tr.p ~~np VA~~. ~fie tr~c eooper~~Lve=av a~~oc~a~~onsune~olo~r.:er.t are a~~nO~lze~ ~O gran~ tnls al:o~~ce for A lor~~r per~od. ?r.e~~after ~orkerG ~aV r~ce~ve une~o:o~~e~~ be~efit !o~ 78 ~aVR i~ t~p c~r.~ ~A~~. 56 / 140 20/10/2014 II/675/3/74-B UNE"PlOY"ER, ,NSURAICE . ..., ;.....;...;.....;... TMlf". Z II tit, c...ttyll Stat.. -.-- .- .-" --~. --.-

GERMAXY 9ELGIUM FRAilCE ITALY II/675/3!74-BL U X E M ROU R G UNE~PlOll!EUT .NSlJR •• CE ••...... ~...-.,.=...... , -...•...... -.... TMUIt.Z a) At l~ast 6 months' emplo~~nt ?~riod vari~s according to the age a) To have been in paid ~mploym~nt a) At least 2 y~ars of insuranc~ At l~ast 200 days of ~mployrn~nt of the insur~d p~rson: 75working for at least 150 days during the ~~d52 weeks' contributions during during the last year under insuranc~ cov~r during the . - -- - . .. _ .. _ .... -_." last 3 years days during the last 10 months and last year the last 2 years b) During th~ last y~ar at l~ast 600 working days during the last b) At least 91 days' memb~rship b) At l~ast 5 w~~ks' contributions GER10 weeks' 1~ !I. ?l" employmentY under in- 365 E monthsI.G I UM For? 520r, n workingc :. hours ov~r 12 b~for~j TAL 1949 Y or during the lastLUX 2 E M Il o URG sur~~ce cover or to have received months years unemployment allowance (for at loyment allowance (for at least ans da,y) 65 65 for men a) and 11) 65 - 65 a~b 65 60 for womon a) ~.t~ximurJ'1resources + allowa.."1ces ca - pp - - b) State of n~ed - 1 200 por month. !lo mn..xi:;a:m during first 3 months

for men n) anti n) 65 65 None 65 None 65a) 3 days ,,) 7- d:3.~'s 2 days if period af unemnla~rment ~~65 60 f-or womBn b) None b) 1 day is less than one week 80) - - r·:~xirr.urn renources + allow::t..""lcp.5 CI - - b) State 01' need F'F1 280 pe r nont h , Uo r.v~.."(imlJm - during first 3 mon"tha s) and b): 6 days a week Working days and Unpaid public a) and b): Ever:r day a) and b): Every day iWery da,y holidays None None a) 3 riav s Cl) 7 d(W~ 2 d"ya if period of unem~layment :Jone b) 1 is a) Proportionate to periods of l'io limit (except for certainb) ca8es a) :10 limit hut sllowU1ce reducoddA", a) 180 days a year (extended le~sto than26 oneweeks week in 12 months emplo~~ent during last 3 years where unemplo:rment is protracted 0 by lO~ after 1 year ar.d by l~ 360 days in the building sector fun lo..."~nt Al low 'l'1Ce recurs with unusual freqllency, h~~ for e?Ch further yoar (m'J.Ximum und~r transitional arrangem~nts) 6 months - 78 days dicapp~d work~rs in a prot~ct~d r~ductian of 30~ far work~rs ov~r b) 90 da,ys, with possibility af a) and b): 6 9da;'/"sa months week 120,fo rleing da,ys da,yaworkshopand unpaid and 'forkerspub l i c with"') reducedandb): Every55: no dR,Vroduction when job,,) lostand b}: Evaryexte:lsionda:r i'Nery da.y 12 months 156holiiiays days hours over 55) 18 months 234 da...vs b) 365 days - with ext~nsions a) Prop0rtionate to periods of .,0 limit (elCCO?t for certain case e a) :[0 l i mi t hut ,'l.llol<'l!lce r<>r::nccd Cl) 180 d.ü,vsa year (exter.dcd to 26 weeks in 12 months 24 months 312 days varying according to worker's age 8mploy;ner.t during last yeaz-s i 8 prot ract ed c lO~ after ye"r Rr.~ by :0-; 360 days in the ~~ilding acctor b) No limit 3 where unemplo~{rnen~ by 1 F.:on'lrt-, .,~nt Al!o-;..r=J~"ce recurs with unusual frequenoy, h~.n for each fuMher ycar- (~'lXimtlm under transit ional 3..-:-angements) 6 mcnt hs 78 days dicapped wo~kers in e. protectcd reduction cf 3~~ for workers over bl 90 da,ys, with possibility of 9 months 120 da,ys c

{4. 'j. - lIe (~ ~ L 57 / 140 20/10/2014 ~{ } e re .'

II/675/3/14~ UNEMPLOYMENT INSURANCE ---~-_.- TABLE Ir . 3 ----

,-,. . to. . ------II/675/3/74~---. ,w' 0

TAIlLE". 3 nSN?4ARK lRF.L~'.!1 D NIT E J1 KINGDOM NETHERLANDS (at 1 Jub 19'-) • EarnlngE it.aken as reference Calculat ion usually based on ave- P~~-r01~tcd D~n~fit F~-1rnin:7';:-r"'1~t~(1 fiunnlem~nt D~ily earnin~s lost rage earnings of preceding 5 G~oss t~x~blB earninr,s in a pre- AvorrJl\€,;cck1:.r e~~rnin~~ ( obtained 'JN"TTEJ1 KIN"GnOM t.;eeks vious income t~x year by dividin~ e~~ual carnin~s byNETHERLANDS 50 in the relevant tax year

Earning! .t.akenasCeiling reference CnLcul at Lcn90;~ usulilly of averi4>ebased onearningsa.ve- P"~-r~]~tcnPnv-r~l~t~ih~~0fit ~~~pfit ~-:"1r'1i. n""i:-r'"' E?rni.n~~-r~l:1tedl::d erl !';'.Jn"!)1 Qm~nt f::u":)nleme!1tD~ily earnir.~sa) andlost b) FI 155.70 per day rage earnings of prcceding 5 c~o~~ ~~xablBI.: )0 e~~in~8 per ,:cekin a pre- AV0.r.'1i-:';€ t:cc-kl:,1: 42.e~IT:ir.P:'~ per tH~ck(obtained (5-d3..Y week) I.rni.r,t··~-r~ltl;ted.InsuredFJ."'':101erl''le"!'lt persons under 18:a) £a~d 4.75 b) ~L c) 155.1075rl, ofper referenced~v earnings per day) >: 50 per ":C8'"!.~:m or ",'Or.1anot~er than above:.L ':::';::.per ~·!'eckMarried Nomen (5-d'l.Y: 1: 6.05week)Minimum for heads of household L 7.75 ppr week (1 ) and single persons of 40 years Rate l·:a.xirnUID. rates are fi;:;ed fOT a a) ~'l;:;-t r"'lt e "h ('>~,~ fi ~ }lll:"l.t r"!.t~ henpfit a) ~d c) ~ Qf reference earn- p"v-r~l~tpd oenefit E:trnjnl?'f~-rC];tt0cl ~llnT)l~mpnt and over: ye= at a. tilDe by the aepar'ate ~~~~ied wc~~~ d~p0ndent on her c 8.60 per li~ek (I) in~s t10:.~if rcr:Ko!1anlc weekly earni!1,ffFf 33 ll~:; of n.vera~e T,-lcekly e.'3.rn- and b) 80% of Fl 72.38 funds (a.t not mare tr.an Dk: 132 husb~~d: t 6.55,~er week Insured pers ans under 18: i: 4.75 c) of referenaaa~ ea.-ning~ bntwepn 1: 14 and r. 50 inp;s np.hrecn £. 10 ;md i. 307>~ plus c 75% of Fl 76.15 per day) ~~ ~r wO~an otner than above: ~::l..rried h'0ffiQn :L 6.05 Minimum for he~~s cf houschald IS";' of(1 ) ;J.vcr2..:-çc\.;cek1.v earnin~s l. 7.75 ppr week0) Urb't!'l ;u'e~s: i. 6.35 maximum and single persons of 40 ye~s E~"l.rnir.!!"~~-!"'~lrtt~dbetween :'":'lnDl~m,pnti. 30 .~d i 42 PAv-rpl~t~d Otherher.efit : i. 6.05 rna..xim'J.111 and over: aO~if rCI.Konablaper weekwcekly earni~9 33 171::; afLimitpd "ven,:,e l: 10 totaland f. He~kly30 plus ben~fit 75%(in-cf Fl 76.15 The co~bined fl~t rate and p~v- cl 1S·~ 0 f .r:!VCT'i"!.18clu~in~F~eekl:{carn fl~t rrttebenefit,in;;s in- b ) Ur-n-m "1'e~s:rel~t~dL benefits6.35 ma:d.mum ~~ynot exceed bet~'cen i:. 30crp.a~es :u:d i 42 for àeocndRnts and earn- Ot ho rth0 : p~r~on'G l: 6.05 rn'llCÜn'.llll rcckonablc we0kly in~s-rel~ted.G~pplement) up to per '.cek Limit~d to the P-ffi01xnt needed ta e"lrnin.~r: 8')',:~ of :J.ver,-;-,,'"':p'\-~e('i.:l:ve::trnint;:1 brin~ total weekly ben0.fit (in- ..J The cocb i ned fl~t r-at e arid p av-« Family supplements a) 1 deppndent adult ch:riin.:;1:5.05 flat 1 ratedependentbene I'i.t adult , in--- .. 5.30 N'one Tel~~~d be~efita ~~y not e~ceed each firnt cr~~~es for13t 0epcndRn1s dependent Rnd child earn- i. 2.70 - th~ r~r~'",'~r-ecken••blc1 or w!!oklytwo dependent children in~s-r~l~ted1: 2.20 ur to e;"J,rnin."':f': 2nd~~rple~ent)dependent child i. 1.80 , errch further child es,.:1:of 1.80."1.ver.-'r:~~rtherp ~';c(l:':l:v children,e.rtrnin~~::; each .., per week 1: 1.70 per week (1) Family supplemente Uona a) 1 dp.p~'lJe'ltadult L 5·05 1 de!,~nd"nt "dult t: 5.30 1 or cnch0)fi,.~t 1 dependentt"W'o adult 13t aependent child i 2.70 dep end ont chi1dre:-:urban areas C 2.201: 4.602nd max.dependent child t 1.80 e2.ch funherother child C 1.80r. 4.50further max. children, ea.ch per week 1 adult + 1 child L 1.70 per week (1) urban areas C. 6.55 max. b) 1 dcp~!Ldent adult other 1: 6.45 max. urban ar-e as L 4·60 ::nax. per week otter L 4.5° max. 1 adult + 1 child urban areas C 6.55 1n.-J.X .• other i. 6.45 max , per ••ael<:

11...... A.ba.. . ."0+ n" "hA '''I'IIo''l'AO (J) As from 25 July 1974. ... In addition to family allowances

• I'Or iIOst PT tna "_ .•,. ;)tatlS (1 ) Ae fro~ 25 July 1974· -:In addition to Camily allowances 58 / 140 20/10/2014 II/675/3/74..;p. UNEMP1.0YJUBT J.H.sijRAJCE ..~ .1. aa.._ ------...... - R" TABLE IY. 3 Inthlllr-nlb M_er States

GER~!AYY 3ELGIUM FR r. !1 C E ITALY II/675/3/T4-BLUXEMBOURG

••••UNE"PlOYMflr ".•.••••••••.•.••••• _ 11SijBAJCEb ••••• _ .••••••••• a) lAllE IY.1 a) a."1d b) jret earning" for the Average gross earnings - - ~arnings on which sickness in~~r- last 20 da,vs ta thll r-nlbb) Earnin~s on whichstate•. contributions ~"1ce contributions are paid h~ve been"_erpaidfor last 3 months CERMA!fY B_LCIUM IT t.. LY LUXEM1'I0URG a) a."1db) DM 2 500 per month - c) FP 9 280 per month - Lfr 42 267.- per month a) a~d '0) ~8t earnings for the .\verage g roaa earnings a) - ~arnings on which 81c~eS8 in~ur- ~inp's a)on Standard r~te FF 9.10 (1) per lasta) According 20 d<\"{s to f&~ily situation: 60~ of ea.~ings for one year,b) then which cQntributions a) and b) Standard rate: ~"1ce contributions60% of reference are paid .earnings been raid .80 to 62.5~ of net earnings reduced to 40~ unless householdh~ve àav for last ...3 Lit 800 per day b) From ~; to '52.5% head: months b) 35;~ of reference earnini;s (2) maximum Bfr 452 per day Minimum: FF 13.92 per day (3) Y~~imum for single persons: a) MiniIüu.m cl F? 9 280 Fromper Decemberrnonth 1974: total indem- per and b) D:~a) 2 D~ 500 228.60 per month per week Lfr 42 267.- ~onth Head of household Bfr 345 nity is increased to 90% of the b) D~ 192.00 per week 1------4------+------1------1------~Single person Bfr 276 gross salary for il maximum period 6a.J~ of ea....-ningsfar one ;year, then ,,) Sta.'1dard F'P 9.10 (1) per a) ~ccording to fa~ily situation: (6-da,y I,eek) ofrate one year a) and c) Standard rate: .80 t 0 62. 5i; 0 f net earninge r-educed to 40% un Ie ss houaeho Ld dav •• Lit 800 per day b) Frou 80'!~to ·52.5;~ b) 3~~ of reference p.arnin~s (2) ma>,i~~ Bfr 452 per da..V ~ür.ir.:"J."': i''i<' 13 .92 per day (3) ~~~icum for single persons: Mini~ From December 1974: total ind~rn- a) ml 228.60 per week nead of household Bfr 345 nit.y is increased to 90% of the b) D~ 192.00 per week Sine,le person Bfr 276 r,~Q~S salary for a maximlli~ period (6-da,y \1eek) of ane yenr

*) I a) and b) DM 12 per week for each a) For spouse and each dependent dependent person (can be comóined person: FF 4.- per day - - with f&~ily allowances up te a maximum of DM 348 per week)

,,) n) and b) DM 12 per week for eaoh a) For spOuse and eaeh dependent depend~nt nerson (ean 'oe combined person; F? 4.- per day with family al10wances up tc a ~axi~ of DM 348 per week)

*) In addition to f~i1y a11owa."1ces. (1 ) For the first three months: FP 10.-. (2 ) 15% supplement du:ingthe first three months. (3) For the first three months: FF 16.-.

In add i t i or; to fa.1.ilya'lLovance s , Par the firot three conths: }~_lOf-9 fi~st three 15~ 5upple~ent du:ing the montha. e' le (II' '( For the first three cOnths:~ F? 16.-.~' 59 / 140 20/10/2014 t e re ~\

II/675h/74-E UNE"PLOYMENT INSURANCE ._. 11 j r I - '111f...... TABLE IV. ~ (at 1 July 197~) · In the Qlullnfty "111181' States IIj675/JtT4-E

DBN!l.ARK IRELA'iD I UNITED KINGDOM NETHERLANDS PARrIAL U!ŒJ.!Pr..oy;.!z}''T (at 1 Jul)' 1914} • In the Co.llntt)' 11••. Stabs Definition of partial No special definition - Any day of unemployment on which Short-timo workinG (under 48 hrs unemployment a person would normally work per week) or alternating periods IRELA':n TI N I TED KIN G D 0 X N E Tof HER employment ~ A N D withg the approval of the authorities

Definition of partial ):;0 special definition Any day cf unemployment on which Short-timo workin~ (under 48 hrs unemp loyme nt 1'1. person would norrnally work per weck) or altern~ting periorls of emplo:rment with the &ppraval af the authorities Conditions See Total Unemployment See Total Unemployment See Total UnemDl~'Tment - (interim allow~c~)

Compensation Proportional rate as for total - See Total Unemployment See Total Unemployment Conditions See Total Une.mploymentunemp loyment See Total Unemplo~ent See Total Une~plQ~~.ent (interim allow~ce)

PropoMiona.l rat e as for total See Total Unemployment See Total Unemploymcnt uncmployment

ACCU'.rnLATIQ1, Pensions: acc~~ulation permitted Normally not payable with other See Tables "Sickness-Cash Bene- a) and b) ~~y compensation paid but duration of benefits is social insurance benefits fits" by the employers is deducted limited c) - Sickness cash benefits: no Part of supplementary income is acc~~ulation ,\ccrr..nJLATION per.sions: acc~~ulatiDn permitted No~ally not payable with other See 'rabIes "Si.ckness-Caaa Bene- a) and b) Anydeductedcompen~ati~n from thep~id allowance Income :rom othp-r ~ainful activit hut rluration of benefits ie social inß~rance benefits fita" by the employers is deducted (self-employed activit v excepted). limited c) - the general rule excludes accum- ~ickness cashulation.benefits: In ana number of special Pa.-t of supplementary income ia accunu Lnt i.on cases, however, accumulation is deducted from the allow=ce In cone -"'romoth••r .,.,"linfulactivi t possible (self-employed activi~v €xcep~ed). the ~eneral rrile 8xcl~des accum- ~lation. In a number of s?8cial cases, however, accumulation is po~aible

· For lost of the It8lllber states

• For IWst 01 t heIIser statn 60 / 140 20/10/2014 UNEMPLOYMENT INSURANCE II/675/3/r4-E -r..i--.,-j'-- - 1""... TABLE IV. 4 fn the r..nHy "8IIIber States

GERMANY SELGIUM P R A 11 C ::: I TAL Y LUXE>!BOURG. II/67 5/3/7 4-E UNEMPLOY"ERT,NSQRjNCE closure Insur~~ce only: unavoidable Days or half days during•••• li::IIIII which •• --- --the~-,_c"iIi-a) Assistance: ." ""s temper,,!,:,! i'i"",e stlDple:nents: temporary clcs- 3hort-time working or two or ,"ore short-time working initially execution of the work contract is or short-time workin?, (under 40 ure or short-time werkin~ (under daYs of une:npl~vmentTABU1'1.4 in a norm"l affecti~ at least 1/3 ~~d there- suspended fll the Co.unHyhours per "_ar week) Stabs affectin?, at ~O hours per week); workin/\,week after at least l~ of staff (1) least 20~ of the st"ff for industr~al workers whose enterprises h~ve b) Insurance: pa,~ent of supple- been admitted to CERMANY FRA~!C'!: the w~e Gupplements scheme; and mentary heurs allowance T T ~ L Y LUXE:.l]10URG in cert"in cases also for employees Insurance only: unavaidable Days or half daYs during whieh the a) Assiatance: tem"~rarv closure ih,',:e snpplc:nents: temporary cIo a-. Start-time working or two or ~Ore See Total Unemplo~ent and over See Total Unemployment See Tot"l Unemployment None See Total Unemplo.vment short-timo working initi~lly execution of the work cantract is er stort-time ",nrki".?,(under 40 ure or ahort-time workin,~ (UZlder da:rs cf une.7lploY':Jcl'ltin a norrna I affecti~ at10'least reduction1/3 and ofthere- normal workingsuspended time ho~rs per weck) affecti~ at ~0 h~ur" per veek); worlcing- week af't e r at· least 10;"'1. of staff (1) least 20:!.cf ttc st"ff rar industr~~l wa~ker8 whas~ e~- Per hour of ~~emplo~ent, propor- See Total Unemployment il)Hourly allowcmce: 1/80 of the r.ave pay up to 16 b) Iricur-anc e t p~.vme:n-t cf 81.lppli';!- terprises 2/3been of theadmitted tot"l to See Total Unemployment tional rate as for total unemploy- mentary hoursallowanceallow~ce granted to a tot"llythe ~~e 3upplementshours perscherne; week, with~~d unlimited ment (official Bcale) unemployed person for ain fortnight certain Casesdur.'lt inn also in for the emp1oy- case of short- t ime ,:orkin", and up to 4 weeks h) Hourl.y aUowcmce: 2.80 r'P (extension possibla) in the case See Tot al Une:r.r>l.ovmerrt and ove r See Total Unemployment See Total Unemrloyment None See Total Unemplü.yment 1(': retluetion ~f ~orma1 workins of t~mporrtrv closure tim!C! Pencions: as a general rule, no Pensions \beloW 60 or ó5): a) Assistance: with allowances to a) No acc~~ulation of .~~e~ployment Income: deducted in part from Per haul' of ~~employment, propor- Unemployment a) Hour Iv allOH"811ce: l/BO o r the öf acCu.mulation See Total unemployment allowance discontin- old workers ~~d invalidity2/3 pens-th" totalallowancespay up withto exceptional16 See allow- Total Unem91aymentallowance tional raleSickness as for total allowance: unemploy no accumulat- ued or reduced accordingallowance to rate gr~tedions: no to accumulation a tctal1y ofhour earningsn p8r weck,ances with un limi t ad ment (offici~lion 8c~le) of pension unemp lcved p~r~o"daily resourcefor a fortni.:nt ceiling: nllr"t i or; in th"No casaccumulation e of shnrt- with sickness Income: t i:n~ JI,:-jrkin3: and up to 4 weeks Income: h) Hourly afor l Iownn sin?,leperson co r ~'F' 2.80 FP 17.74 allowance a) Income from self-employed acti- no clause relating to resources for f"milies (extension pos~ible) in thp. oase Pl" 33.40 b) No accumulation with pensions vity taken into account in part of t~r:1Do1r.:tr:" c l onur-e b) Supplementar:rinsur"nce: with SO far as the activity does not allow~~ce provided as u.~employ- Pe~GiDn8: aB a excludegeneral unemploymentrule, no Pension5 under the (below 60 or 65): a) As~i~tanc~! ~ith allow:~ces ta a) No acc~~ulation of ·~~ecploy.oent Income: ded~cted in p~ from ment assistance: accumulation pos accumu Lat i cn .terms of the law unemp10yment allawance discontin- old wprkcrs ~~d invaliditv pens- allow~nces with exceptional allow allowancc sible up to (95% if there are SietcEless a.llo'Wance~b) Entitlement nc accw"a1J.lat- to assistanceued or pre-reduced according to rate i.cnst no accurnu La t i cn o!9010 earninga ances dependants) of earnings ion eupposss state of needof pension daily reso~rce ceili~~: No aceun~lation with sickness Income: Inceme: far sinP,le person F? 17.74 allowance a) Incame from self-employed acti for fa.:r.ilieg 1'1" 33.40 no clause relating to resources b) vity taken into ac count in part No accumulation witn pensions b) ~'pple~ent~rv insurA.nce: with SO far as the activi ty does not allo~p~ce provided as ~~e~loy- e~clude LL~employment under the mellt assistance: accll:mllatior. po s t erms of the law eible up to 1f there are b) Entitlement to aselstance pre- 90i0 (95; dependantn) of earnings euppoaea state of need

(1) In the building sector, in the event of une~ployment due to weather conditions (1 November - 31 March), for each full day lost compensation as for partial unemployment and in addition for each hour of unem~loyment a ~~pplewent equal to 5% of a mason's hourly wage.

(1) !n the building seetor, in the event of une~plo~ent due to weather cenditions (1 Uovember - }1 March), for each fall day lost ,. t~ compenaation as for partial une~ployment and in additioft for each

RapportRapport du dugroupe groupe de dereflexion réllexion ((Union«Union economique économiqueel monetaire et monétaire 1980)) 1980))

ReporlReport of the of the Study Study Group Group uEconomic«Economic and and Monetary Monetary Union Union 1980)) 1980))

BerichtBericht der der Studiengruppe Studiengruppe uWirtschafts-))Wirtschafts- und und Währungsunion Währungsunion 1980« 1980«

Contributions individuelles / Individual contributions / Individuelle Beiträge Contributions individuelles / Individual contributions / Individuelle Beiträge

Annexe II Annex II Anlage II Annexe 11 • Annex. 11 • Anlage· 11

" l o o W iii "- ;;: ~.. BRUXELLES, MARS 1975 . BRUSSELS, MARCH 1975 . BRÜSSEL, MÄRZ 1975 ..I BRUXELLES, MARS 1975 • BRUSSELS, MARCH 1975 • BRÜSSEL, MÄRZ 1975 r- ""- ~ '" ., "-It) .... 10 r-, 10 "- ::::"' 62 / 140 20/10/2014 TABLE DE3 MATIERE3 CONTENTS

TABLE DES MATURES CONTENTS " A) H.W.J. BOSMAN, Professeur dans les domaines: ''Monnaie, crédit, banques" à l'Université de Tilburg A) H.W.J. BOSMAN,Professeur dans les domaines: l'Monnaie, crl§dit, ... 1. What does an Economic and Monetary Union include! ? (UEN-7) ' banques" a 1'UniveTsitä de Tilburg' B) G. BROUWERS,Président de la Chambre de Commerce et d'industrie de 1. What does an Bccnonri.o and Monetary Union includ'l ? (UEM-7) la Ha;ye

, B) G. ffiOU'rlERS, President1. Analyse de critique1a Chambre du passéde Commerce et enseignements et d'industrie pour de l'avenir la Haye (um-38) . 1. Analyse oritique du passe et enseignements. pour 1 'avenir C) L. CAMU,Président de la Banque de Bruxelles (U1!M-38) 1. La recherche d'une,unité de compte européenne pax les C) L. CAMU,Presidentopérateursde 1a Banque (UEM-60)de Bruxelles 1. La recherche d'uneunite de compte europeenne pax lee D) I. FOlGHEL,Professeur de droit à l'Université de Copenhas~e operateurs (UEM-60) 1. The Institutional and Legal Problems in connection with an D) I. FOlGHEL, ProfesseurExternal da Borrowing droit a l'Universiteand an Exchange de Copenha~:ue StabilizatioD Fund for the 1. The InstiCommunity tutional (UEM-62) and Legal Problems in connect Icn wi th an Externa1 Borrowing and an Exchange Stabilizatio~. Fund ~or the E) F. FORTE, Vice-président de 1 'ENI, Roma Community (UEM-62)

E) F. FORTE, Vice-prhident de l'ENI, Roma

1. 'A Fiscal Framework for European Union (UJ!M-1O) F) H. GIERSCH, Directeur de l'''Institut ftir Weltwirtschaft an der 2. Energy scenario and European Energy Institutions (UEM-l2) Universitä.t Kiel"

F) H. GImSCH, Directeur1. The Case,de l'fortlInsti a EUropeantut ff1r ParallelWe1twirtsohaftCurrencyan (UEN-13) der Universität Kiel" G) P. LYNCH,Professeur d'économie à l'Université nationale d'Irlande, Dublir .. 1. The Case. for a Eu.ropean Parallel Currency (mM-13) I., Monetary integration - A note on the Irish experience (UEN-26) G) P. LYNCH,Professeur d'econom1e a l'Universitä nationaled'Irlande, Dublir ,;:',- 1._ Monetary integration - A note on the Irieh experienoe (um-26)

63 / 140 20/10/2014 '" H) Sir Donald MAC DOUGALL, Conseiller principal pour les affaires économiques H) Sir Donald MACDOUGALL,Conseiller principal pour les affaires ~conomiqueB de la "Confederation of British Industry", London de la "Confederation of Eri ti sh Industry", London I"' .. 1. Discussion paper submitted for the second meoting of the 1. Discussion paper submitted for the second meoting of the Group on 29/30 March 1974 (um-8) Group on 29/30 March 1974 (UEM-8) J) H. MARKMANN,Directeur de "Wirtschafts- und Sozialwissenl~chaftliches J) H. MARKMANN, Directeur de 'lWirtschafts- und Sozialwissenr3chaftliches Institut des DGB" Institut des DGB" 1. The Policies of Social Security in a future :~conomic and 1. The Polichs of Social Security in a future :Economic and Monetary Union (UEM-24) Monetary Union (tJm-24) 2. Concerted Action in the Economic and Monetar;r Union (ITEM-50) 2. Concerted Action in the Economic a.nd Monetar;v-Union (illM-50) 3. Measures to fight Unemployment (Um-52) 3. Measures to fight IlnempIoymerrt (UElvI-52) K) T. PEETERS, Professeur d'économie à l'Université de Louvain K) T. PEEl':ERS,Profeeseur d'economie a lfUniversite da Louvain 1. EMUand Employment, Price and Income Policies (UEM-9) 1. EMUand Employment, Price and Inoome Policies (UEM-9) 2. The Linkbetween Internal Monetary Policies and a Credible 2. The Link between Internal Monetary PoUchs a.nd. a Credible Intra.-European Exchange Rate System (ITEM-54) Intra-European Exchange Rate System (lIEN-54) L) A. SHONFIELD, Directeur du "Royal Institute of International Affairs" L) A. SHOEFIELD,Directeur du "Royal lnsti tute of International Affaire" 1. The Aims of the Community in the 1970's (UEM-ll) 1. The Aime of the Community in the 1970's (~EM-l1) 2. A European Community Balance - of~8\YII1ents FUnd (UEM-34) 2. A European Community Balance - of~a;yments F'und. (1mJI-34) M) N. THYGESEN,Professeur d' économie à 1 'Université de Copenhague M) N. THYGESEN'. Professeur d feconomie a. 1'Univerei te da COj:enhagu.e 1. Community Coordination of Exchange Rate Policy (UEM-43) 1. Community Coordination of Exchange Rate Poli cy (UliM-43)

~ '-,

5 5

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Document rédigé par H.W.J. BOlli~N

DocumentDocument redige written par H.W.J. by H.W.J.BO~~NBOSMAN Document written by H.W.J. BOSMAN

1. What does an Economic and 1-~onetary Union include?

1. What does an Economic and Monetary Union include ?

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WhatWhat does does an economic an economic and andmonetary monetary union union include? include?

TheThe monetary monetary aspect aspect of an of economic an economic and andmonetary monetary union union can canbe be moremore ea5ily easily definedthan defined than the theeconomic economic aspect. aspect. According. According. to the to theWerner- Werner- repport a monetarya monetary union union implies implies full full and andirrevocable irrevocable internal internal con- con- reppart vertibilityvertibility of the of thecurrencies currencies at fixed at fixed definite definite rates rates of ex- of ex- changechange and and full full liberalization liberalization of capital~movements. of capital_~ovements. Because Because the money-supplythe money-supply or the or the liquidi liquidity ty ofa ofa member-state member-state can can in that in that sltuations~tuation no longer no longer be controlled be controlled by the by thenational national central central bankSt banks, monetarymonetary policy policy at least at least in its in mainits main decisions decisions "must .must shift shift from from thesethese authorities authorities to authorities to authorities at the at thecommunity community level. level. What What monetarymonetary policy policy implies implies is also is also clear: clear: discount discount policy, policy, open- open- market-policy,market-policy, liquidity liquidity ratios, ratios, ceilings ceilings to bank to bank lending, lending,

exchange-rate-policyexchange-rate-policy (of the(of thecommunity community towards towards the theouter outer world) world) . . NotNot only only the thefinal final situation situation is rather is rather clear, cle.é3.r,it it is also is also pos- pos- ~~,-~ '''~ s~bles~ble to suggest to suggest stages stages in which in which co-ordination co-ordination between between central central b~nksb~nks will will be gradu~lly be gradually replaced replaced by a by common a common system system of central of central banks,banks, which which could could be based be based on the on theEuropean European Fund Fund of Monetary of Monetary Co-operation.Co-operation. The The narrowing narrowing of the of marginsthe margins of fluctuation of fluctuation of of thethe European European currencies currencies also also follows follows logically logically from from the thede- de- f.l.nition.f.Lnition. TheThe authorities authorities who who should should combine combine their their efforts efforts and andultima- ultima- telytely roust must fo~m form a new a newbody, body, are arealso also clearly clearly to define. to define. They They areare the thecentral central banks banks under under a certain a certain general general authority authority from from ehe Government.Lhe Government. The The ultimate ultimate relation relation between between the theFederal Federal ReserveReserve System System of ~he of ~heCommunityand Community andthe thePolitical"Authority Political Authority of thatof that Community Community will will not notbe easy be easy to find to find as this as this relation relation nownow changes changes fram from country country to country to country but but the thenegotiations negotiations on 0n t.h asth~s point point will will not notdiffer differ fundamentally fundamentally from from t.ne thenegot.i..a negotiatlo~scLor.s concerningconcerning the politicalthe political organs organs of the of theCommunity Community such such as a as a GovernmentGovernment and and a Parliament. a Parliament. ThatThat the themonetary monetary aspect aspect Ls in is more in more precise precise terms terms to de" to y:.""de';r;~.," 1S provenis proven by the by theWerner-report Werner-report and and also alsoby the by thereport report "European "European EconomicEconomic Integration Integration and andMonetary Monetary ~nification"of ~nification"of the theStudy Study GroupGroup on Economic on Economic and andMonetary Monetary Union. Union. ThoughThough the theultimate ultimate transfer transfer of power of power in the in themonetary monetary field field to ato supra-natural a supra-natural organ organ will will be a be very a very dec.1.sivebut decisive but also also

q g 66 / 140 20/10/2014 A-IA-l

d1fflcultdtfficult step in the process towards a European union, from ~ the technical point of view the obstacles will be smaller than in the fields of social and economic policy. The authorities .... (central bank people and ministry of finance people) know each other and often meet. They have a great expertise that is shared onlyanly by a few people outside their offices. The only important economiceconomid group that is1s directly influence~byinfluenced··by the décisionsdecisions of the monetary authorities is the banking system that is generally wellweIl organized and with which contacts are relatively easy, There also seems to be a general t~ndencyte.ndencythat that the banking system as a rule followsrecornrnendationsfollowsrecommendations of central banks. Of course the structure of the banking systems is1s rather different ln~n the various member-states, but that points to the conclusion that the implementation imp1ementationofthebroadof thebroad decisions of the European monetary authority should be decentralized and for the time beingheing remalnrema1n in the hands of the central banks. In the broad field of economic and social policy far more pressure groups are involved ~ndand parliamentary control is much stricter than in the case of monetary policy. These issues are more debated in press, t.v. and radio than in the case of monetary policy. Wage policy for instance has a direct bearing on the income and welfare of the people; the same applies to'to tax policy. A budget policy that is restrictiveiestrictive for macro-economic reasans,reasons, will always hurt some groups and interests and where- as within the nation-state it is already difficult to formulate and implement a soupd policy,po1icy, e.g. to stabilise the business- cycle, ·itit will be far more difficult tota harmonize those poli- ClesCles between nation-states. Moreover to reach a certain objec-ohjec- .~ tlVetiVe there are many possible instruments. One instrument can from an economic, social and political point One instrument can from an economic, social and po1itical point ,. of view be better applied in country A and another instrument in country B but implementing both in their respective c'.)untriescoun t.rLe smS3 m~ threatenthreatenequilibrium equilibriuni .between these states. The same can ha.ppen of course in the field of monetary policy but as pointed outOU~ before, fewer and less1ess broad interests are involved and a com- promise that prevents a conflict can be more easily reached.

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The Werner-reportThe Werner-report rightly rightly stresses stresses that that in the in final the final stage stage two community two community

organsorgans should should be established be established : B. tI :centre a "centre of decision of decision for economic for economic policy" policy"

~ and aand "community a "community system system for the for central the central 'banks!", banks". When When it comes it comes to lay to down lay down whatwhat should should happen happen during during the first the first stage stage the report, the report, besides besides recommending recommending smallersmaller margins margins between between currencies currencies thali than follows follows from from the margin the margin towards towards the the -;:. U.S. U.S.dollar, dollar, does does not mention not mention precise precise measures measures of economic of economic policy policy but reiies but relies on :on consultations, : consultations, meetings, meetings, big lines big lines of economic of economic policy, policy, recommendations, recommendations, harmonization.harmonization. liIoreprecise More precise is the is idea the idea of a of ~urvey a ~urvey at communi at community ty level level bar.reber.regovernmentsgovernments draw drawup their up their budgetary budgetary proposals. proposals. Most Most of these of these px-opo- propo- salssals have have been been taken taken over over by the by Council the CoUncil of Ministers, of Ministers, but the but experience the experience of theof past the past few years few years taught taught us that us that these theseprocedures procedureshave have proved proved to be to be failures.failures. One can One safely Can safely assert assert that that these these procedures procedures and the and deliberations the deliberations withinwithin the Council the Council have have never never been been effective effective in influencing in influencing national national decisions. decisions. For thatFor that reason, reason,.!!2!!!.! ~powerpower should shouldbe given be given to Community to Community a.uthorities, authorities, even even if itif were it were only only a right a right of approval of approval or veto or veto and it and should it should be rather be rather precisely precisely laidlaid down down in what in what fields fields this this power power may be may executed be executedand hoW' and detailed how detailed this this powerpower will willbe. be. In orderIn order to reach to reach agreement agreement between between the present the present member-states member-states this this power power can notcan be not too be detailed too detailed but it but should it should be effective be effective • hot . to hot harmonize to harmonize eco- eco- nomicnomic policy policy in all in its all aspects its aspects - but -to butprevent to prevent effectively effectively tendencies tendencies thatthat would would separa.te separate the development the development of the of economies the economies still still more more than than i8 is now alreadynow already the oase. the case. This This oould could bring bringus to us an to action an action of the of conununity the community authoritiesauthorities to narrow to narrow the discrepancies the discrepancies that that exist exist at present at present between between member-states.member-states.

The reportThe report of the of Study the Study Group Group says says (pe 4) (p. : 4) :

"Autonomy"Autonomyof national of nationaleconomäc economicpolicy policy objectives objectives and the andLack the lackof homogeneity of homogeneity of attitudesof attitudes in particular in particular towards towards the trade-off the trade-off between between unemployment unemployment and and inflationinflation are at are the at origin the origin of the of familiar the familiar adjustment adjustment problem problem which which has been has been plaguingplaguing the functioning the functioning of the of international the international monetary monetary system system far more for more than than ~" a decadea decadenow. now.It is Italso is also the central the central issue issue in the in process the process of creating of creatinga a mone'tarymonetary.union". un i.on"• il

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>!c It should be the aim of the CommunityCommunitysupra-national supra-national bo~body of whichwhieh the Commission of the EUropeanEuropean Communities isia the logicallogiea.1 predecessor,predeeeasor, to judgejUdge whetherMhethermeasures measures proposed by the national authoritiesauthor1ties would strengthenstre~hen the - ~ differencesdifferenees in attitudesatti tudeB. towards the trade-off. In that easecase onecould imagine that e.g. a wagefreeze, or other measures of fneomeincome policy,pOl1eYt,proposals proposals pointing to a broadening of the budget deficitdefiei t (aooording(according to national accountsaecounts following the O.E.C.D. pattern), wi th more than Sa::! say 10%, tax measures whichamourrt' amount to more than certain percentages, should be judged beforebef'cre by the Commission. In caseease a right of approval or of veto whou1dwhould be ,thought.thought to go too far for the moment, a right to postpone the measure or just the right to give the "European" opinion would a1re~already be interesting. In the latter case the opinion would have to be published in order to influenceinfluenoe public ,opinion.ópinion. The present difficulty is18 that iti t is1s not knoWnknoWnwhether whether a concreteconorete measure of economic policy is1s against the broad communitycommunityinterest. interest. Followingm;y my proposal the European authoritya.uthority must!DUstgradually gradually form a wealth of materialm,aterial andand. exercisesezerci8es on which laterla.ter to base an economic policypolioy of their own. I have Umi!imi ted myself m;yself to what couldoould be done in the time to come and what should be the minimum measures to be taken in the field of proaedures.procedures. The efforts to reach fundamental solutionss01utions for problems like a communityoommunitybudget,budget, a European corporation, harmonization of socialsoeial security etc.eta. shouldahould of course go on. WeWecannot, cannot, however, wa.!waitt for those issues to be solvedaolvedto gain some experience in dealing wi with th a European social and economiceeonomic policy.polioy.

J.J.W.J. W. J. :BosmanBoaman -t Tilburg, 4th March 1914

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Document rédigé par G. BROln,~RS

Document written by G; BROmJERS Document redige par G. BROtn'~RS

Document wri tten by G." BROffirlERS

,;'

1. Analyse critique du passé et enseignements pour l'avenir

1. Analyse critique du passe et enseignements pour Ifavenir

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G. BRomw,RSG. BROmIERS

ANALYSEANALYSE CRITIQUE CRITIQUE DU PASSE DU PASSE ET ENSEIGNEMENTS ET ENSEIGNEMENTS POUR POURL rA 'JENIRL'A \TENIR

~. IntroductionIntroduction

La orteeLa crise actuelle actuelle

1)1) La criseLa crise qua traverse que traverse actuellement actuellement la Comrnunaute la Communauté europeenne européenne est plus est plus gravegrave et plus et plus vaste vaste que les que precedentes. les précédentes. Par le Par passe, le passé, des obstacles des obstacles speci- spéci- fiquesfiques ont maintesont maintes foisfois freine freiné 1e developpement le développement de la de Gommunaute, la Communauté, mais mais un un efforteffort conjoint conjoint a le a plus le plus souvent souvent permis permis da les de surmonter. les surmonter. Gette Cette fOis-ci, fois-ci, cependant,cependant, san unite son unité encore encore inachevee inachevée est menacee est menacée par un par malaise un malaise plus plus general général qui eprouvequi éprouve davantage davantage sa force sa force da resietance de résistance et partant et partant sa cohesion. sa cohésion. Ce Ce malaisemalaisè trouve trouve son origine son origine dans dans un ensemble un ensemble de causes. de causes.

Une causeUne cause recente récente et importanteest et importante la est crise la crise de l'energie. de l'énergie. Celle-ciCelle-ci a provoquea provoqué dans dans une serie une série d'Etats d'Etats membres membres un deficit un déficit da la de balance la balance des des paiementspaiements qui aqui profondement a prOfondément perturbe perturbé leur leur equilibre équilibre economique. économique. En outre, En outre, co~ncidantcoïncidant avec avecune penurie une pénurie exceptionnelle exceptionnelle sur lesur march6 le marché des matieres des matières premieres,premières, elle elle a porte a porté l'inflation l'inflation en Europe,en Europe, qui stait qui était deja déjà vive, vive,a un à un niveauniveau ja~s ja~is atteint. atteint. Aussi Aussi grave grave soit-elle aoit-elle an elle-meme. en elle-même, la crise la crise da de l'energiel'énergie n'a somme n'a somme toute toute fait fait que mener que menera son à apogee son apogée un mouvement un mouvement en coure en cours depuisdepuis quelques quelques anneea. années. Par dfimportants Par d'importants mouvementsmouvements da capitaux de capitaux speculatifs, spéculatifs, le desordrele désordre monetaire monétaire international international a nona seulement non seulement rompu rompu ln stabilite la stabilité rela- rela- tivetive qui caracterisait qui caractérisait les rapportsles rapports monetaires monétaires en Europe en Europe mais mais a egalement a également contrecarrecontrecarré les tentatives les tentatives timides timides visant visanta une à politique une politique conjoncturelle conjoncturelle communautairecommunautaire et sape et sapé la realstance la résistancea l'inflation. à l'inflation.

LtebaucheL'ébauche encore encore fragile fragile de l'unite de l'un.ité monetaire monétaire da La de Communaute la Communa.uté nra n'a ~ pas pupa.s reaister pu résistera de~ellea à de. .telles pressions. pressions. Les p~sLes pays de la de Communaute la Communauté connaissent conna.issent actuellementactuellement une inflation une inflation demesureedémesurée et un et chomage un chômage accruaccru qui affaiblissent qui affaiblissent sa forcesa force de croieeance de croissancedeja déjàattenuee atténuée par des par causes des causes internes. internes. Ces tensionsCes tensions economiqueséconomiques provoquent provoquent des tenaionsdes tensions politiques.politiques. Ensemble, Ensemble, elles elles conduisent conduisent les gouvernementsles gouvernements des Eta~B des Etats membres membresa se à conceritrer se concentrer davantage davantage Bur leurs sur leurs I I problemesproblèmes atrictement strictement nationaux.nationaux. .../...... /...

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2) Il11 ne s'agit pa~ seulement pour les Etats membres de sauvegarder àa court terme leurs intérêtsinterets personnelspersonneis immédiats.immediats. L'impuissance de la1& Commu- , pautépaut~ d'influer sur l~la courscaurs des événementsevenements accrédite&ccredite de plus en plus la thèsethese que, en adoptant le1e rythmer,ythme qui étaitetait lesien, la CommunauteCommunauté a surestimésurestime ses possibilitéspossibilites pratiques et que les disparitésdisparites nationales sont encore 'Ii trop grandes pour êtreetre surmontéessurmontees par des spéculationstechnocratiques.speculationstechnocratiquee. Avant qu'on puissepuisee songer àA une relance de la1a Communauté,Communaute, ili1 conviendrait d'abord de triompher des difficultésdifficultes concrètesconcretes sureur le plan national, fût-cetUt-ce par 1&la concertation ou la coopération.cooperation. Dans une telleteIle aptique,optique, la1& CommunauteCommunauté n'a de chancesohances reellesréelles de reussirréussir que si 1ele climatelimat est favorable, c'est-à-dire,c'est-a-dire, si les problèmesproblemes nationaux sont en bonne partie résolus.reso1us.

Toutefois,Toutef'ois, "reculerIfreculer pour mieux sauter" est un principe qui ne convient pas dans~ans la1a situation actuelle.actue11e. ReculerRecu1er n'a un sens que si l'on dispose d'une assise solide sur laquelle1aquelle on peut se replier. Or,Ort l'assisel'aasise nationale est aujourd'hui devenue trop étroiteetroite pour la solution des problèmesproblemes auxquels les Etats membresmembrea de la CommunautéCommunaute sont confrontés.confrontes. Afin de sortir de l'impasse,l'impasae, ili1 est doncdone indispensable de renforcer la CommunautéCommunaute plutotplutôt que deda la figer pour un temps dans l'immobilisme. Sur le plan national on peut tout au plus encore essayer de se protégerproteger tant bien que mal des effets des influences perturbatrices. Tenter de seee maintenir pendant longtempslongtempa sur l'assise troptrap étroiteetroite déde l'ecanomiel'économie nationale seraitaerait retourner vers un passépasse dontdorrt les leçonslagons n9u_~~llou.l'!~ontamenes ont amenés il y a un quart de sièclesiecle àa r:0u.sr:ou.s_ellgager _e~gager résolumentresolument dans la voie d'une/coopérationd'unejcooperation nouvelle.

3) Il esteat dtailleursd'ailleurs illusoire de vouloir revenirrevenlr temporairement adesà des solutions nationales. Non seulement parce que, en raison de l'intégrationl'integration de fait de l'économiel'economie européenne,europeenne, lesproblèmesles problemes ne serontseront"resoluB résolus que surBur le national " plan/et doncdone~e manière maniere partielle seulement et que leur solution demandera par conséquentconsequent un temps deda plus en plus long, mais aussiaUBsi parceparee qu'onquton se heur- ~ tera BanS cesse àa de nouveaux problèmesproblemes auxquels s'appliquera ce qui vient d'êtred'etre dit àapropos propos des problèmesproblemes actuels. Le monde ne s'arrêtestarrete ni économi-economi- quement ni politiquement. Dans les multiples discussions sur le1e choix deda la '" sociétésociete de demain, c'este'est àa peine si l'on mentionne encoreeneore l'idéeltidee de l'unitél'unite

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europeenne,européenne, a10rs alors que taut que tout ce qua ce nOus que nous avons avons appris appris au cours au cours de ce de siecle ce siècle demontredémontre que cette que cette unite-est unité"est bien bien le fondement le fondement indispensable indispensablea l'equilibre à l'équilibre politiquepolitique et economique et économique de notre de notre continent. continent. Si la Si Communaute la Communauté marque marque 1e pas, le pas, 1a aoeiatela société de demain de demain se fara se fera sans sans elle. elle.

~ 11 eeraitIl serait evidemment évidemment foncierement foncièrement errone erroné de croire de croire qu'une qu'une Communaute Communauté mieuxmieux cimentee cimentée serait serait en mesure en mesure de surmonter de surmontera court à court terme terme lee difficulteB les difficultés dontdont souffrent souffrent actuellement actuellement les Etats les Etats europeens. européens. Cela Cela vaut vaut tout tout particulie- particuliè- rementrement pour pour l'inflation. l'inflation. La persietance La persistance et l'acceleration et l'accélération croissante croissante de celle- de celle- ci. problemeci, problème economique économiquea I'origine, à l'origine, en ont en fait ont fait un probleme un problème politique politique dont dont les donneesles données sont sont da plus de plus en plus en plus liees liéesa 1a à question, la question, da politique de politique aoeiale, sociale, de 1ade repartition la répartition des revenue. des revenus. 11 n'empeche Il n'empêche que, que, grace grâcea une à action une action plus plus efficaceefficace face facea. l'ensemble à l'ensemble de nos deprob'Lömea nos problèmeseconomiques, économiques, une Communaute une Communauté consolideeconsolidée sera sera mieux mieux en mesure en mesure qu'un qu'un Etat Etat iaole isolé d'apporter d'apporter ace à probleme ce problème crucralcrucial une _rep0!lseeconomiquement. une réponseéconomiquemeri~_~t _et socialement socialement _juatifiee._Il justifiée..Il est evident est évident qua lesque bases les bases de depart de départ d'une d'une Communaute Communauté plus plus solide solide devront devront etre être etablies établies d'und'un commun commun accord accord par des par mesures des mesures preliminaires préliminaires concernant concernant les problemes les problèmes qui sequi posent se posent aveC avec acuite, acuité, tela tels que les que deficits les déficits particuliers particuliers des balances des balances des paiementsresultantdes paiementsrésultant de la de crise la crise de l'energie, de l'énergie, l'hyper-inflation l'hyper-inflation due en due en partiepartiea eette à cette meme même crise crise et les et rapports les rapports de parites de parités entre entre les Etats les Etats mernbresa membres. MaisMais les meilleures les meilleures techniques techniques sont sont vouees vouéesa I'eohec à l'échecsi on si s'avise on s'avise une foie une fois de plusde plusa vouloir à vouloir les appliquer les appliquer par la par voie la voie qui s'est qui s'est revelee révélée tant tant de fois de fois infructueuseinfructueuse de la de coordination-non la coordination obligatoire. non obligatoire.

4) 4) Le marasmeLe marasme actuel actuel de la de Co~aute la Co~auté ne vient ne vient pas de pas ce de qu'elle ce qu'elle aurait aurait J I surestimesurestimé son importance. son importance. La cause La cause profonde profonde en est en que est les que Etats les Etats membres membres ont bienont bien trop trop hasite hésitéa tirer à tirer les consequences les conséquences politiques politiques concretes concrètes des des prinoipesprincipes politiques politiques qui ont qui preside ont présidéa sa-oreation. à sa.création. C'est C'est cette cette faiblesse faiblesse organiqueorganique qui a qui empeche a empêchéLa Ccimmunaute la Communauté de jouer de jouer un role un rôle posi tif positif face face aux aux problemesproblèmes des dernieres des dernièrês annees. années. ,I>- Alorsqut qu'à l'époque du plan Schuman, l'aspect politique et l'aspect Alors a l'epoque du plan Schuman, l'aspect po1itique et l'aspect éoonomique de l'intégration européenne étaient équivalents, la valeur attachée eoonomique da l'integration europeenne etaient equivalentst la valeur attachee ." au premierau premier n'a cesse n'a cessé de se de deprecier se dépréCier au fil au des fil ans. des ans.

Aujourd'hui,Aujourd'hui, la Communaute la Communauté en est en arrivee est arrivée au point au point aue pour que pour poursuivre poursuivre Bon integrationBon intégration economique économique et eviter et éviter qua les que Etats les Etats membres membres ne reviennent ne reviennenta à des politiques exclusivement nationales, il faut des mesures concrètes, des politiques exclusivement nationalest il faut des mesures concretest

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d'ordre politique, par-là entendez également d'ordre institutionnel. L'objet de la présente introduction est d'illustrer brièvement la thèse développée drordre politique, par-la entendez egalement d'ordre institutionnel. L'objet ci-dessus en prenant pour point de départ le développement politique et ~ de la präsente introduction est d'il1ustrer brievement la these deve10ppee économique de la Communauté et de dégager ainsi l'orientation principale des ci-dessus en prenant pour point de depart le developpement politique et propositions précises, à court et à plus long terme, qui sont exposées dans economique de la Communaute et de degager ainsi l'orientation principale des ~ les chapitres suivants. propositions precises, a court et a plus long terme, qui sont exposees dans lesLes chapitres débuts desuivants. l'inté~ration européenne

Les5) debuts deLa l'integration volonté d'écarter europeenne à tout jamais les divisions politiques et économiques des années trente a été le point de départ de l'intégration 5) La volonte d'äcarter atout jamais les divisions politiques et européenne. Dans un premier temps, les efforts ont avant tout porté sur l'in- economiques des annees trente a ete le point de depart de l'integration tégration politique; les menaces de la guerre froide opposant très rapidement europeenne. Dans un premier temps, les efforte ent avant tout porte sur l'i~- l'Est et l'Ouest n'y étaient pas entièrement étrangères. Ces efforts ont tegration po1itique; les menacesde la guerre froide opposant tres rapidement abouti à une double initiative: la créationde la Communauté du charbon et l'Est et l'Ouest n'y etaient pas entierement etrangeres. Ces efforte ont de l'acier,_ d'une part, et de la Communauté européenne de défense, de l'autre. abouti a une double initiative: 1a creationde la Communaute du charbon et Dans les deux cas, l'objectif était de créer des garanties contre une renais- da l'aciar, d'une part, et da 18 Communaute europeenne de defenser de Itautre. sance de la rivalité franco-allemande, rivalité qui avait été si longtemps au Dans les daux cas, l'objectif etait da eraar des garanties eontre une renais- centre des divisions en Europe. sance de la rivalite franco-allemande, rivalite qui avait ete si longtemps au centre des divisionsLa première en Europe initiative •. avait pour but de dénationaliser l'assise industrielle de la guerre en intégrant l'industrie européenne du charbon et de La premiere initiative avait pour but de denationaliser l'assise l'acier dans une Communauté supra-nationale. La seconde visait à dénationaliser industrielle de 1a guerre en integrant l'industrie europeenne du charbon et de l'appareil militaire en l'intégrant dans une communauté supra-nationale de I'acier dans une Communaute supra-nationale. La seconde visait a denationaliser défense. La première fut couronnée de succès, la seconde échoua. Un système 1 'appareil inilitaire en 1'integrant dans une communaubä aupna-nat Lona Le de militaire intégré apparaissait prémat~ré et l'on chercha, dès lors, à mettre defense. La premiere fut couronneet de succes, 1a secende echoua. Un systeme sur pied une coópération militaire dans le cadre atlantique. militaire integre apparaissait prematpre et l'on chercha, des lors, a mettre l 6) Si le succès rencontré par la CECA constituait une première épreuve sur pied une eooperation militaire dans 1e cadre at1antique. importante de la force des tendances à l'intégration européenne,ce succès 6) Si 1e succes rencontre par 1a CECA constituait une premiere epreuve restait limité à la "petite" Europe des Six. Le reste de l'Europe occidentale importante de la force des tendances a l'integration europeenne, ce succes ne semblait pas encore-disposé à franchir le pas décisif de la supra-nationalité restaj,.tlimite a la "petite" Europe des Six. Le reste de 1'Europe~ occidentale .... même si celle-öi n'était présente dans la CECA qu'à un degré relativement ne semb1ait pas eneore'dispose a franchi~ 1e pas decisif de 1a supra-nationalite modeste. Cette supra-nationalité apparaissait dans les pouvoirs~ de la Haute meIDe si celle-ci n'etait presente dans la CECA qu'a un degre relativement ,. Autorité qui lui permettaient a~ moyènnant un budget propre obtenu grâce à dés modeste. Cette supra-nationalite apparaissait dans les pouvoirs de la Haute prélèvements mis à charge de l'industrie communautaire du charbon et de l'aCier, Autorite qui lui permettaient a~ moyennant un budget propre obtenu gräce ades de promouvoir la modernisation des secteurs considérés et de faire face aUX prelevements mis a charge da l'industrie eommunautaire du charbon et da Itacier, éventuelles conséquences sociales d'une telle modernisation; b) d'empêcher de promouvoir la modernisation des secteurs coneideres et de faire face aUX eventuelles consequences soeiales dtune teIle modernisationi b) d'ernpecher .../... 18 .../... 18

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la formation d'ententes et donc de positions dominantes dans ces industries.

La Haute Autorité était directement responsable devant l'Assemblée pour tout .. Ia formation d'ententes et done de positions dominantes dans ces industries. La Hautece qui Autorite avait trait etait à directement ses compétences responsable propres. devant Lorsque l'Assemblee des problèmes pour tout plus graves ce quise avait sont posés, trait a commeses competences la crise charbonnière propres. Lorsque de 1957, desil problemes est apparu plus que graves les "". se sontpouvoirs posest.comme de la Haute 1a crise Autorité charbonniere étaient insuffisantes de 1957, il est et apparu elle a que dû se les soumettre pouvoirsaux décisions de 1a Haute du Autorite Conseil des etaient ministres insuffisantes où les intérêts et elle nationaux a du se soumettre étaient aux d~cisionsencore prépondérants. du Conseil des ministres ou les interets nationaux etaient

encore7) preponderants.A l'origine, on oeuvrait avant tout dans le sens d'une intégration

7) "fonctionnelle"A 1'origine det laon vie oeuvrait politique avant et tout économique, dans 1e sens c'est-à-dire d'une integration d'une intégra- "fonctionnelle"tion d'objectifs de la spécifiques vie politique tels et qu'incarnés economique, dans c'est-a-dire la CECA et d'une la CED. integra- Outre tionl'aspect d'objectifs très specifiques important de tels la qu'incarnes sécurité dans dans ces 1a deux CECA domaines, et la CEn. l'idéeOutre qui l'aspectprésidait tras important à ces efforts de 1a était securite qu'une dans intégration ces deux domaines, de fait des 1'idee économies qui des presidait.Etats aces européens efforts ne constituait etait,qu'une pas integration une base suffisante de fait des pour economies appliquer des à une Etatspluseuropäena grandene échelle constituait le principepas une de base la supra-nationalité. mtffisante pour appliquer Après l'échecA une de plusla grande CED en eohelle 1954 et 1e la principe stagnation de 1a relative supra-nationalite. de l'OECE, laApres force I'echec des tendances de à la CEDl'intégrationen 1954 et 1a européenne stagnation s'est relative cependant de l'OECE, révélée 1a suffisamment force des tendances grande poura faire l'integrationaccomplir europeenne à l'Europe slest des progrès cependant beaucoup reve1ee plus suffisamment consédérables grande dans pour le domaine faire accompliréconomique.a l'Europe des progres beaucoup plus consederables dans 1e domaine economique. La Communauté économique européenne

La Communaute8) economiqueEn mettant europeenne en oeuvre le plan Marshall, l'OECE - dont l'éventail des

8) tâchesEn s'élargiramettant en ultérieurement oeuvre le plan - avait Marshall, accompli l'OECE pour - dont l'Europe 11eventail un travail des tachesimportant s'elargira dans ulterieurement le domaine de - la,libération avait accompli des pour échanges l'Europe économiques. un travail Elle avait importantmis fin dans aux le restrictions domaine de 1a quantitatives liber~tion des à l'importation achanges economiques. et à l'exportation Elle avait et mis finmultilatéraliséaux restrietions les opérations quantitatives de paiementa l'importation entre les et Etatsa l'exportation européens. et Ces deux multilateralisemesures avaient les operations favorisé au de plus paiement hautpoint entre le les redressement Etats europeens. et la Ces croissance deux mesuresde l'économieavaient favorise européenne. au plus Il haut était point apparu le cependant redressement impossibleet 1a eroissance de poursuivre dans le cadre de l'OECE le processus de libéralisation et d'aboutir à un ... de l'economie europeenne. 11 etait apparu cependant impossible de poursuivre dansdémantèlement le cadre de l'OECE s,ystématique 1e processus des tarifs de liberalisation douaniers. Il et fallait d'aboutir poura celaun des demante1ementimpulsions s,ystematique politiques plus des tarifs fortes douaniers. qUi, en définitive,11 fallait n'ont pour pu cela être des trouvées

"' impulsionsqu'à l'intérieur po1itiques de plus l'Europe fortes des qtii, Six en désireuse definitive, d'une n'ont intégration pu etre trouvees totale. Ainsi qu'aest l'interieur née la Communauté de l'Europe économi~~edes Six desireuse européenne.d'une integration totale. Ainsi

est neB9) la CommunauteLa CEE economi~Je a été conçue eu~opeenne. en tant qu'union économicrueà caractère supra- 9) nationalLa provisoirementCEE a eta con9ue limité. en tant Si qu'union on excepte economicrue les compétencesa caractere propres supra- de la nationalCommission provisoirement européenne limite. en matière Si on de excepte politique les competences de concurrence propres et de de politique 1a Commission europeenne en matiere de politique de concurrence et de politique .../... 19 •. .. " 19 .. /

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commerciale, c'est au niveau du Conseil des ministres, composé des représentants

des gouvernements des Etats membres, que se situe le centre de décision concer- commerciale, c'est au niveau du Conseil des ministres, compos8 des representantB -', nant la politique socio-économique. Sur la base des objectifs définis dans des gouvernements des Etats membres, que se situe le centre de decision concer- le Traité, la Commission européen.""1ea pour tâche de soumettre des propositions nant la politique socio-economique. Sur 1a base des objectifs definis dans .... au Conseil qui, dans certains cas, décide à la majorité qualifiée. Ces décisions le Traite, 1a Commission europäenne a pour täche de soumettre des propositions auraient dû conduire, après une période de transition de 12 ans; à une union au Conseil gui, dans eertains CaS, decide a la majorite qua1ifiee. Ces decisions complète avec li~re circulation des marchandises, des personnes, des ervices auraient du eonduire.a apres une periode de transition da 12 ans; a une union et des capitaux et/une politique commune dans la mesure où, d'après le Traité, complete avec li~re c~reulation des marehandises, des personnes, des erviees celle-ci étaitindispensablea au bon fonctionnement de l'union considérée. Pour et des capitaux et/une politique commune dans la mesure ou, d1apres 1e Traite, cela, le budget communautaire, limité à l'origine, serait doté des moyens celle-ci etaitindispensable au bon fonctionnement de l'union consideree. Pour nécessaires selon des modalités qui étaient également déterminées par le Traité. eela, le budget communautaire, limite a l'oricine, serait dote des moyens necessairesLa selon politique des moda1ites commune guicouvre etaient également egalement les cinq determinees domaines par suivants: 1e Traite. a) L'union douanièreLa politique et lacommune politique couvre commerciale egalernent communeles einq qui domaines s'y rattache; suivants : b)a) L'unionla politique douaniere agricole et la commune; po1itique commereiale commune qui s'y rattache; b)c) l'harmonisation1a po1itique agrico1e des politiques commune; économiques et la politique commune en matière d~ concurrence en vue d'assurer un marché totalement libre; c) l'harmonisation des politiques economiques et la politique commune en matiere d) la politique structurelle, y compris la politique régionale, afin d'assurer à d~ concurrence en vue dfassurer un marche totalement libre; la Communauté une structure économique équilibrée et efficace; d) 1a politique structurelle, y compris la politique regionale, afin d'assurer a e) la politique conjoncturelle etmonétaire. 1a Communaute une structure economique equilibree et efficacej

10)e) la politiqueLe succès conjoncturel1e des débuts etmonetaire. fut prometteur. L'union douanière fut réalisée pendant la période de transitio~ prévue pour son achèvement. Il en fut de 10) Le succes des debuts.fut prornetteur. L'union douaniere fut realisee même pour la politique agricole commune. L'agriculture s'était vue attribuer pendant la periode de transitio~ prevue pour son achevement. 11 en fut de une place toute particulière dans le Traité parce qu'à l'image de la politique meme pour la politique agricole oommune. Ltagriculture stetait vue attribuer menée dans les différents Etats membres on la considérait comme un secteur une place toute partiouliere dans le Traite parce gu'a l'image de la politique où la formation des prix ne pouvait être abandonnée au libre jeu de l'offre et menee dans les differente Etats membres on la considerait comme un secteur de la demande. Le fondement de la politique agricole fut la mise en place d'un ou 1a formation des prix ne pouvait etre abandonnee au libre jeu de l'offre et mécanisme de formation de prix aussi uniformes que possible et, s'y rattachant, de 1a demande. Le fondement de la politique agricole fut 1a mise en place d'un une politique d'importation et d'exportation vis-à-vis des p~s tiers, qui mecanisme de formation de prix aussi uniformes que possible et, s'y rattaohant, seule t pouvaient garantir une libre circulation des produits agricoles. Aussi, une politique d'importation et d'exportation vis-a-vis des pays tiers, qui cet élément de l'union économique était-il défini avec précision dans le Traité. seule t pouvaient garantir une libre circulation des produits agricoles. Auasi, Cette définition précise et le fait que les Etats memores, fût-ce à des degrés oet element de l'union economique etait-il defini avec precision dans le Traite. divers, avaient particulièrement intérêt à ce que la politique agricole commune Cette definition precise et le fait qua les Etats memorea, fUt-ce a des degras se fasse ont grandement contribué à ce succès. divers, avaient particulierement interet a ce que la politique agricole commune se fasse ont grandement oontribue a ce ~cces. .../... 20 .../.....

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11) En vue de réaliser la circulation totalement libre des marchandises, 11)des services, En vue de des realiser personnes la .et circulation des capitaux, totalement la Communauté libre des a déployé rnarchandises, pendant des services,la période des de personnes transition .et une des très capitaux, grande la activité Communaute pour a harmoniser deploye pendant les dispo- 1a periodesitions de législatives transition une nati-onales tres grande et notamment activite les pour régimes harmoniser fiscaux. les dispo- Mais, les sitionsprogrès legislatives furent lents nationales parce au'on et notamment se heurtait les regimes à de nombreuses fiscaux. traditionsMais, les et pragresparticularités furent lents nationales parce au'an auxauelles se heurtait lesa Etatsda nombreuses membres se traditions raccrochaient et souvent particularitesavec acharnement, nationales parfois auxquelles sous l'influence les Etats ~ambres de groupes se raccrechaient de pression. C'est Beuvent avecpourquoi acharnement, ce chapitre parfois l'union saus l'influence économique de n'est rrroupesde pas encore pression. achevé. C'est pourquoi12) ce chapitreCela vaut l'union dans economique une plus forte n'est mesure pas encore encore acheve. pour la politique struc- 12)turelle. Cela Cette vaut politique dans une comporte plus forte deux mesure aspects. encere Le paur premier la politique est l'harmonisation struc- ture11e.des mesures Cette politique nationales comporte destinées deux à aspects. venir en Le aide premier aux régions est l'harmonisation en retard et aux des mesuressecteurs nationales défavorisés destinees en vue, a d'une venir part, en aide d'éliminer aux regions les distorsions en retard et de aux concur. seeteursrence defavorises à l'intérieur en vue, de la d'une Communauté, part, d'eliminer et, d'autre les part, distorsions de renforcer de concur· la reneestructurea l'interieur économique de la de Communaute, celle-ci. et, Une d'autre politique part, énergétique da renforcer commune la revêtirait structureici une economique importance de particulière. celle-ei. Une Le politique deuxième energetique aspect est comrnunerevetirait l'encouragement des ioi uneactivités importance qui ne particuliere. peuvent s'épanouir~einement Le deuxicme aspect que est sur l'encaur~ement le plan communautaire. des activitesL'utilisation qui ne peuvent de techniques s'epanouir~einement modernes et la qua recherche sur le plan nécessaire oommunautaire. à cet effet L'utilisationprésentent da sur techniques ce point modernes un intérêt et exceptionnel. la recherche necessaire a eet effet presentent surceLe point développement un interet de exeeptionnel. l'industrie nucléaire était considéré çomme un exempleLe particulier develeppement de ce de type. lrindustrie C'est dans nucleaire cette etait optique eonsidere que, parallèlement comme un exempleà la particulier CEE et sur de les ce traces type. de Ctest la CECA, dans cette que fut optique créée quer une nouvelle parallelement Communauté : a laEURATOM. CEE et sur Cependant, les traces les de intérêts la CECA, nationaux qua fut cre8e à court une terme nouvelle apparurent Communaute tellement : EURATOM.plus Cependant, importants les que interets ceux de la nationaux Communautéa court dans terme son ensemble apparurent qu'EURATOM tellement se plussolda importants pratiquement que ceux par de un la échec.' Communaut e dans son ensemble qu'EURATOM se par- soLda pratiquementBien queun les echec.' p~s de la Communauté aient manifesté pendant la périodeBien de transition que les p~ys une da croissance la Communaute relativement aiant manifeste forte et pendant diversifiée, la periodeon ne da peut transition affirmer une que eroissance la politique relativement structurelle forte de et la diversifiee, Communauté en fut un on nefacteur peut affirmer important. que Lès la pelitique tentatives structurelle visant à coordonner de 1a Communaute les politiques en fut nationales un faeteurdes important. Etats membresLes setentatives sont encore visant trop a heurtées coordonner à des les conflits politiques souvent nationales imaginai- des Etatsres d'intérêts membres se nationaux. Bont encere Cette trop coordination heurteen adesa notamment conflits failli souvent sur imaginai- le plan res dfinteretsimportant de nati.onaux,Cette la politique régionale; coordination la Communauté a notamment devait failli payer Bur chèrement Le plan cette importantcarence de lorsqu'à la politique la fin regionale; des années la soixante, Communaute sa devait croissance payer et cherement sa stabilité cette carencefurent lorsqu'a ébranlées la fin par des l'inflation ann6es Boixante, et par le sa dérèglement cralssance et du sa système stabilite monétaire furentmondial. ebranlees par l'inflation et par 1e dereg1ement du systeme monetaire mondial. .../...... / ... 21 21

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St~pnation d~~s la CBE

StRpnation d<:'l.l1s 1a 13) La gravité,decnE ces difficultés est imputable d8~s une lar~e mesure 13)à la carenceLa gravite.de de la partie ces de difficultes la politique est ~e imputable la Communauté dDns une qui 1areo aurait mesure précisé- a ment1a earenee dû en être de la l'élémentcentral, partie de la politique à savoir ce la la Cornmunaute politiquo'conjoncturelle qui aurait preeise- et mentmonétaire. du en etre Contrairement l'element central, à la politiquea savoir CCmTJne la politiquo·conjoncturel1e qu'il prévoyait dans de et monetaire.nombreux autres Contrairement secteurs,a 1a le politique Traité préconisaitCOffiTJne qu dansti1 prcvoyait ce domaine dans la coordina- de nombreuxtion des autres politiques secteurs, nationales le Traite des preeonisait Etats membres. dans Il ce posait domaine donc 1a en coordina- principe que tionceux-ci, des po1itiques en premier nationales lieu responsables des Etats de ~embres. leur troissance 11 posait et done de leur en prineipe équilibre. que ceux-ci,propre, en assureraient premier lieu la responsables croissance et da l'équilibr~ leur croissance de la et Communauté de 1eur equi1ibre. dans son propre,ensemble assureraient en coordonnant la croissance leurs politiques, et l'6quilibr~ tout en de acceptant la Communaute d'éventuelles dans san ensembledifférences en eoordonnant d'orientation leurs imposées politiques, par des tout circonstanbes en acceptant divergentes. d'eventuelles Il sous- differeneesestimait donc d'orientation les limites impoß~es guela dépendance par des cireonstances rêciproqu8 et divergentes. l'interpénétration 11 sous- estimaitcroissante done des. les économies limites quela allaient dependance imposer aux reoiproquB politiques et ltinterpenetration conjoncturelles croissantenationales. des' Il eeonomies méconnaissait allaient la nécessité imposer aux d'une politicmes politiqu.e conjoncturelles conjóncturelle et nationales.monétaire commune 11 meconnaissait rendue indispensable la necessite par dtune l'intégration politique conjoneturelle elle-même. En consé- et monetairequence, les commune institutions rendue indispensable de laCommunauté par ltint6cration n'y étaient pas elle-meme. préparées. En A conse- mesure quence,que les les tensions institutions internationales de laCommunaut6 s'aggravèrent, n'y 6taient cette pas carence preparees. organique A mesure se fit quede les plus tensions en plus internationales sentir. s'aggraverent, eette carence organique se fit de14) plus en plusLa Commission sentir. européenne, conscienfude la nécessité d'une coordi- 14)nation aussiLa Commission effective que eurapeennc, possible, conscienmde déploya dès la le necessite début une d'une grande coordi- activité nationdans ce aussi domaine. effective Cinq qua comités possib1e, consultatifs dep10ya compétents des 10 d6but dans une les grande différents activite danssecteurs ce domaine. de la politiaue Cinq comites économique cansultatifs et financière competents préparèrent dans les differents les débats seeteurspériodiques de la du politiaue Conseil des economique Ministres et au financiere cours desquels preparerent les di~ectives les debats élaborées periodiquespar la Commission du Conseil européenne des Ministres en matiere au cours de politi~e desquels conjoncturelle les di~ectives étaient e1aborees parexaminées. la Commission Ces débats europeenne portèrent en matiere bien vite de politique également conjoncturelle sur des programmes etaient à moyen examinees.terme et permirent Ces debats de porterent recueillir bien de vite précieuses egalement informations Bur des pro~rammes sur la politiquea moyen termesuivie et par permirent chaeundes de recueillir pays membres. de prGcieuses Toutefois, informations ils ne débouchèrent Bur la politique pas sur auiviede réelles par chaeun confrontations des pays membres. et n'influencèrent Toutefois, donc ils ne pas deboucherent concrètement pas la sur politique dedes reelles gouvernements confrontations nationaux. et n'influenC0rcnt Sur ces points done essentiels, pas concrctement ceux-ci étaient la politique trop despréoccupés gouvernements par la nationaux. situation Sur économiqueceG points et politique essentiels, dansceux-ci leursetaient pays respectifs trop preoccupespour accepter par la l'idée situation d'en débattre economique encore et poßtique au sein dudü.l1s Conseilleurs des pays Ministres. respectifs pour15) aceepter Au lfidee début, dIen il n'y debattrc avait encore pas lieu au de sein s'en du inquiéter, Conseil des compte r.1inistres. tenu de la 151forte expansionAu debut, économique il n'y avait et de pas la progression lieu de s'en du inquieter, taux d'inflation campte tenu encore de la forteassez expansion lente à cette economique époque. et Avec de la ~~ progression peu d'optimisme, du taux on dtinf1atian pouvait considérer encore assez lente a cette epoque. Avec ~~ peu d'optimisme, on pouvait conciderer \ ...j... 22 ..../.... 22

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qu'il s'agissait du déma~rage d'une procédure qui, à la longue, deviendrait plus qu1il s'agissaitefficace. Toutefois, du dema~rage à mesure d'une procedureque l'inflation qui, a s'accélérait,la longue, deviendrait le contraste plus entre efficace.la gravité Toutefois, desa problèmesmesure que et I'inflation l'inefficacité s'accelerait, de la coordination le contraste au sein entre du ~ la graviteConseil des devint problem~s plus et manifeste. l'inefficacite Les rapports de la coordination et les reco~mandations au sein du de la ConseilCommission devint plus européenne manifeste. se LeBfirent rapports plus pressants, et les recommandations surtout lorsque de lales symptômes Commissionde crise europeenne monétaire se firent internationale plus pressants, s'aggravèrent surtout dans lorsque la seconde les sympt8mes moitié des de eriaeannées monetaire soixante. internationale La nécessité s'aggraverent de faire front dans en 1a commun seconde contre moitie les des dangers qui anneesmenaçaient soixante. La la necessite stabilité de faire la Communauté front en de commun l'extérieur contre leaapparut dangera de façon qui mena9aientévidente. la stabilite Toutefois, de lail Communaute était tout de aussi l'exterieur évident qu'une apparut action de fagon communautaire. evidente.plus Toutefois, vigoureuse il sur etait le plan tout extérieur aussi evident resterait qu1une théorique action communautaire en l'absence " d'une plus vigoureusepolitique suréconomique 1e plan et exterieur financière resterait commune theorique sur le plan en 1'absenceintérieur. d1une L'insistance politiquede la economique Commission et afin financiere qu'il soit eommune tenu sur compte 1e plan des interieur. intérêts de L'insistance la.Communauté de 1a Commissiondans la définition afin qu'il des Boit politiques tenu compte nationales des interets apparaissait de la"Communaute comme un exigence dans 1aà definition laquelle il des était politiques impossible nationales de satisfaire apparaissait dans la comme pratique. un exigenee a laquelle16) il etaitL'échec impossible de la de coordination satisfaire dans dans le 1a domaine pratique. de la politique macro- 16)économique L'echec a de coïncidé 1a coordination avec le moment dans 1e où domaine l'idée d'ériger de 1a po1itique la supra-nationalité macro- economiqueen principe a coincide directeur avee 18 demoment la politique ou l'idee étrangère d1eriger était 1a supra-nationa1ite l~ plus discréditée. an principeDans la directeur Communauté, de 1a les po1itique oppositions etrangere qui se etait manifestèrent 1~ plus discreditee. à ce sujet eurent Dans 1apour Communaute, effet d'entraîner les oppositions l'abandon qui provisoire se manifesterent dans laa pratiquece sujet de eurent la règle des pour effetdélibérations d'entrainer à la l'abandon majorité provisoire au sein du dans Conseil la pratique de Ministres, de 1a reglequi n'avait des deliberationsd'ailleursa 1a jamais majorite été auappliquée. sein du Conseil Les dissensions de Ministres, au sujet qui n'avait de l'élargissement d'ai11eursachevèrent jamais de ete plonger appliquee. la Communauté Les dissensions dans l'impasse. au sujet Il de fallut 11elargissement attendre la acheverentconférence de p10nger au sommetde la Communaute La Haye dans de 11impasse.déc.embre 1969 11 fallut et les attendredeux décisions la de I conferenceprincipe au sommet qui y de furent La Haye prises de dec.embre concernant 1969 l'élargissemeat et les deux decisions de la Communauté de et I principeson qui renforcementy furent priees interne concernant par la création l'elargissement d'une union de laéconomique Communaute et etmonétaire son renforcementpour débloquer interne la situation. par 1a creation d'une union ecanomique et monetaire paur debloquer 1a situation. L'Union économique et, monétaire L'Union economigu9 et monetaire 17) Le• groupe Werner, Chargé de présenter un rapport sur l'élaboration 17)de cette Le groupe Union, Werner, résume Chargede la manière de presenter suivante un rapportle contenu sur de l'elaboration celle-ci : de cetteles Union, monnaies resume communautaires de la manieTe sont suivante assurées 1e contenu d'une convertibilité da celle-ci : réciproque les monnaiestotale communautaires et irréversible, sant sans assurees flucturation d'une convertibilitede cours et avec Teciproque des rapports de totaleparités et irreversible, immuables sansou, de flucturation préférence, de sont COUTS remplacées et avec despar rapportsune monnaie de commu- paritesnautaire immuables unique; ou, de preference, sont remplacees par une monnaie communautaire uniquej .../...... /.... 23 23

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- la création de liquidités dans l'ensemble de la zone et la politique monétaire - laet creation du crédit de sont liquidites centrali~écs; dans l'ensemble de 1a zone et 1a politique monetaire et du credit sont centrali~ecs; - la politique monétaire à l'égard du monde extérieur est du ressort communau- - lataire; politique monetaire a l'egard du monde exterieur est du ressort communau-

ta.i.rej - les politiques des Etats membres à l'égard du marché des capitaux sont unifiées; - les politiques des Etats membres a l'egard du marche des capitaux sont unifiees; - les données essentielles de l'ensemble du budget public, et en particulip.r lesla donnee variation a essentielles de leur volume, de l'ensemble l'ampleur du des budget soldes public et les ,et modes en par-ti.cu de financementLi er- 1aou variation d'utilisation de leur de vo1ume, ces derniers l'amp1eur sont des décidés soldes au et niveau les modes communautaire; de financement

oules d'uti1isation politiques régionales de ces derniers et structurelles sont decides ne au sont niveau plus communautaire; exclusivement du lesressort politiques des pa,ys regionales membres; et structure11es ne sont plus exc1usivement du ressort des PE!iYsmembres; - une consultation s,ystématique et continue des partenaires sociaux est assurée - uneau consultation niveau communautaire. s,ystematique et continue des partenaires sociaux est assuree

18)au n~veau communautaire.Lé rapport Werner estimait que l'exercice de ces compétences nécessi- 18)tait l'institutionLe rapp~rt de Werner deux organes estirnait communautaires: que l'exercice de un ces centre competences de décision necessi- pour taitla politique l'institution économique da deux et organes un système communautaires communautaire : un de centre banques de centrales. decision pour Alors 1aque politique ce dernier economique serait responsable et un systeme de communautaire la politique monétaire de banques interne centrales. et externe, A10rs queà l'exclusion ce dernier sarait de la fixation responsable de la de parité 1a politique de la monnaie monetaire communautaire, interne et externe, le a premierl'exclusion exercerait de 1a fixation de façon de indépendante 1a parite de une la influence monnaie communautaire, décisive sUr la 1e politique premieréconomique exercerait générale de à fayon l'égard independante des autres une points inf1uence cités decisive plus haut. BUr la politique economique generaleEn ce quia l'egard concerne des notamment autres points la politique cites plus régionale haut. et structurelle, le budgetEn de ce la gui Communauté concerne devrait notamment être la majoré politique de façon r~gionale adéquate. et structurelle, Une autre leconséquence budget de 1a de Communaute ce transfert devrait de compétences etre majore serait de fagon le transfert adequate. d'une Une autre respon- consequencesabilité parlementaire de ce tranBfert correspondante de ccmpetehceseu parlement sarait 1e de transfert la Communauté. d'une respon- Le sabilitestatut de parlementaire ce dernier devrait correspondffilte refléterPU ceparlement transfert de de la responsabilités, Communaute. Le non statutseulement de ce du dernier point de devrait vue de refleter l'ampleur ce de transfert ses attributions, de responsabilites, mais aussi non eu seu1ementégard au du mode point d'élection da vue de de l'ampleur ses membres. de ses attributions, mais aussi eu egard19) au modeUne d'election période de de 10 ses ans membres. était jugée nécessaire pour la réalisation 19)complète deUne l'Union. periode Ellepourrait de 10 ans etait être jugee accomplie necessaire en deux pour étapes, 1a realisation éventuelle- completement davantage. de l'Union. La première Elle pourrait étape etre detrois accomplie ans était en deux décrite etapes, de façon eventuelle- détaillée. mentElle davantage. devrait, grâce La premiere à une coordination etape detraie intensive ans etait de decrite la politique de fagon monétaire detaillee. et Ellebudgétaire devrait, et grace à l'harmonisationa une coordination des instruments intensive de monétaires la politique suivant monetaire un calendrier et budgetaireprécis et et sousa l'harmonisation le- contrôle du des Conseil instruments des Ministres, monetaires mettre suivant en oeuvre un calendrier une preoisharmonisation et sous le- telle c0ntrole que le du transfert Conseil de des compétences Ministres, à mettre la Communauté en oeuvre et une la harmonisationcréation d'organes teIle que cO~ll1autaire le transfert puissent de competences être entamésa 1a au Communaute cours de et la 1a deuxième creationétape. d'organes cO~ll1autaire puissent etre entames au cours de 1a deuxieme etape. 24 .../... 24 ••• /11II ••

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Un rapport sur les réformes institutionnelles sera élaboré en tempsUn utile rapport avant sur la les fin reformes de la première institutionnelles étape, afin sera que elaboreles propositions en en temps utilela matière avant puissent La fin de être la premiere soumises etape, à une conférence afin qua les intergouvernementale propositions en la matierequi sera puissent convoquée etre soumisesconformémenta une aux conference dispositions inttrgouvernementale de l'article 236 du Traité. qui sera20) convoquee Dans conformement sa résolution aux dispositions du 20 mars 1971, de l'article le Conseil 236 des du MinistresTraite. a 20) adoptéDans pratiquement sa resolution toutes du 20les mars propositions1971, le du Conseil Groupe des Werner Ministrea quant aau fond. adopteToutefois, pratiquement il toutesne s'est les pas propositions prononcé sur du la Graupe question Werner essentielle quant au fond.des organes . Toutefois,communautaires i1 ne s'est qui pas seraient prononce chargés sur la d'exercer question essentielle les compétences des organesnationales. qui communautairesdevraient qui être seraient transférées charges à la d'exercer Communauté. les competencesIl s'est borné nationales provisoirement qui devraientà affirmer etre transferees que les institutionsa la Communaute. de la Il Communauté, s'est borne à savoir provisoirement le Conseil, la a affirmerCommission que les et institutions le Parlement, de seraient la Communaute, mises ena savoir mesure led'exercer Conseil, leurs la respon- Commissionsabilités et 1e en Parlement, matière économique seraient mises et monétaire en me sure avec d'exercer efficacité leurs et-rapidité. respon- De plus, sabilitesil a en déclaré matiere expressément ecenomique etque menetaire les politiques avec efficacite communautaires et"rapidite. mises en De oeuvreplus. 11 a declaredans le expressement cadre de l'Union que les économique politiquea et communautaireamonétaire seraient mises soumises en oeuvre aux dans 1edélibérations cadre da l'Union et au economique contrôle du et Parlement roonetaire européen. seraient soumises aux deliberationa et auLa controle résolution du exigeait Parlement certes europeen. le dépôt, avant la fin de la prem1ere étape,La d'un resolution rapport exigeait sur les certesmodifications 1e depot, institutionnelles avant la fin de nécessaires, la premiere mais etape,elle d'un restait rapport muette sur les sur modifications la nature des institutionnelles modifications à necessaires, apporter au Traité. maie En elle restaiteffet, muette le transfert Bur la de nature compétences des modifications pourrait s'opérera apporter soit au sur Traite. la base En des effet,dispositions 1e transfert existantes da competences du Traité, pourrait soit s'operer sur la basesott deBUr dispositions 1a base des non prévues dispositionsau Traité, existantes arrêtées du conformément Tratte, seit à sur l'article 1a base 235, de dispositions soit sur la non base prevues d'une an Traite,révision arreteea du Traité conformement conformémenta l'article à l'article235, soit 236. L'avissur la basefavorable d'une d'une conférence intergouvernementale ne serait requis que dans le dernier cas. revision du Traite conformernent, a l'article 236.. L'avis favorable d'une conferenceL'incertitude intergouvernementale sur ce point ne fondamental serait requis n'a quepas dans manqué le d'affecter dernier cas. le dynamisme , , . L'incertitudede l'harmonisation. sur ce point fondamental n'a pas manque d'affecter 1e dynamisme de l'harmonisation.21) Après une période au cours de laquelle peu de progrès sensibles 21) furentAprea enregistrés, une periode la au conférence.au cours de laquellesommet peude Paris de progres d'octobre sensibles 1972 confirma furentexpressément enregistres, la la résolution conferenceau dans sammet tous ses de Paris éléments. d'octobre Elle décida1972 confirma éga~ement, pour expressementpermettre la resolution officiellement dans le taus passage ses elements.à la deux-ième Elle decida étape conformément ega~ernent, paur au texte permettrede la officiellement résolution de le février passage1972,a lad'instituer deux"ieme etape un Fonds conformement monétaire au européen, texte de la r~aolutiondoté pr9visoirement de fevrier de1972, compétencesd1instituer encore un très Fonds limitées, monetaire et europeen, un Fonds de déve- date pr9visoirementloppement régional, de cornpetences financé par encore des tres ressources limitees, propres et un de Fonds la Communauté. da deve- Enfin, loppement regional, finance par des ressources propres de la Communaute. Enfin,

...1...... /...

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les chefs d'Etat 0:: ùe C,y}vC'T'ner.-::lt )3.:'":~cipl,nt à la conférence se donnèrent

comme objectif majew" de ':-r'i.'1.11f'[':)l'i!lCr :',I cTls(~mble des r8lations des Etats membres les chefs d 'E:at C"C. ue CY.~'.'crn':,;;:·" t ).J.,'~:ici pan t a La conf'er-cnce se donner-errt en une Union européc::no,; Tl G pri'r,-'nt le,_~ 7_nfJti t'J.tions de la Communauté comme objec t i f maje'J~' de ·~!·i.'.'1~r2'l'rnet' :'.' cn aemol.e des r-aLat.Lons des Etats membres d'élaborer un rappo;'t F~lr ;~E: G11-jCt F:,';;.:r1t l!:l fin de 1975, retardant ainsi en une Union eur-ope enno , Tl ~ lTri,'rt:>nt LeG 7.nßti tu t i ona de La Communaute jusqu 'à cette date le d0p3t du l'~':0port institutionnel qui, en vertu de la d'elaborer un r-apport ~'~:r :~(' G"~C'~""lL:r~t ln fin oe 19751 retardant ainsi résolution de 1971, devait êt~p.rrôt peur l~ fin de 1973. jusqu 'a. cette dat e 102 d8p3 t. du T~;("ll)Ort insti tutionnel qui , en vertu de La Le faux départ resolution de 1971, ~l.~l:!~~5.;.?D..~~:.2.f::~1J!!~,d8v~it et~2 rrot POUT l~ fin de 1973. 22) La Commission europssn::e e'c 16 Conseil de Ministres de la CEE durent constater à la fin de 1973 CfUE:, prati::ruement, aucun résult~t important 22) La GomrnisfJlüo etll'Up{E)l::e et 1.0 Con sei i de lI1inistres de La CEE n lavai t été atteint en Ge qlÜ conce;'ne l' ensemble du programme prévu pour la durent canetater n la fin oe 19?3 ~~8, prati:ruement, aucun result~t important première étape. Pour ce quoi. est de la coordination des poli tiques économiques n'avait ete atteint en ce (tüi c:::>JlCe::lh? l' ensemble du programme prevu pour la à. c_ourt terme, les procéàilre~ et 1.nr;;in:;tru_ments prévus ont été respectés. Les pr-emdär-e etape. Pour co au:'. ast de La coord inat i on des pali tiques economiques consultations préalables et ÜbU{','(itoires à toute mesure importante n' ont ä. cour-t terme, les proaea.;;rüs ot LnG im:tl'ilments prcvus ont ete z-espec t ea, Les réellement jamais eu lieu. Le;3 réu.nions eiu Conseil des Ministres ont eu un conaultations prea.IatLe s et übli{';nt:>:i.res a toute mesur e importante n tont intérêt surtout académique. Les GomUAs ctlt certes permis un échange fructueux reellement jama.i.s e1.1Lieu , 1,8;";l'enniCmf~ du Conseil des Ministrea ont eu un d'informations, mais iln n'ont pu p:11È:rc aller au-delà. Les recommandations de interet surtout acadcmtcue, LüG :::omi1;-5scn t certes permis un echange fructuewe politique économique et nO~2m:nent Qe polit.iqu8 budgétaire adoptées par le dtinf'ormations, mais i.l s n t ont pu gUf\re a.l I er- au-de Iä , Les recommandations de Conseil étaient de caractère conventionnel, mais sans grande portée pratique. politique economi.que ct no ~amrnerrt d.e pol:i.tique budgetaire adopt ee s par le La convergence des politiques ':;co]lOmicp.l8S Tl'a été CTue très imparfaitement Conseil etaient de caractsrc convcntionnelr mais sans grande portee pratique. réalisée.Même avant l'imr2,~t r1e IF>. crÜ18 de l'énergie, des divergences impor- La convergence des po l i ti.::ru_es 2coJ~(lrniquez n fa. etl§ cue tres imparfai tement tantes se manifestaient dans le rytnme de l'inflation et la balance des paie- real isee. Memeavan t 11 imr~:~t r1p. lr>, er] se de 1.' energi e, des di,vergences impor- ments. tantes se manifestaient dana Le ry tome de l' inflation et La balance des paie- mants.23) En matière de pohtiri-lW jT;(Jnf.tai.re/ _.certains proß'rès réels ont pu être réalisés, mais ile se sont 2~8r~'" preca1res.L a Résolution de 1971 23)' En mattere d e po li. tiiT'·l'~ j;(l!::f.ta.i.re I certains progres reels ont prévoyai t que les r.J.0nn.'3-ies commm12,:::ti1.ires fluc-i:;ueraient à. l'intérieur de pu etre realises, ma.is Ll c se SO:G.tr.'.\,..;-~r,.~.: pr ecaa r e s , LA. Resolution de 1971 marges plus étroites. Ceci deva~.t se faire d'é'.bord à. titre expérimental, avec prevayai t que les monnaaes C0IT'm1J11c;,'.):t~.1.res· fluc-:ucrcüent a I' interieur de comme monnaie d'irrterT'?nt.i0n lr~ dr)J J.8.1'. i::, C:'\.S de succès de l'expérience, on marges plus 6troites. Ceci d:,va~t RG fai.r':! d'<'.bord a. titre experimental, avec devait passer d 'UL réGime (le :';:..u, :;, J,n réC;,l'l\" d8 droit, puis à des interven- cornme monnaie d'itrtel''l':'"lt),:,n 1(~ d,"'LLa.r. i:::"J C:'t8 de eucc cs de l'experience, on tions en monnaies comrTt:Il:J.Ui.:::Ù::-,?,'.;;; :, dG n()1;VC',1ll.Xl'0-trécissements des marges. devait passer d "un ~',·~[,i.mcr>.."! :rF,1~,\ :1"0. t;~i;;,,,e dn dr-oi t , puis a des interventions en monnaiesDansC()l1Urr.:ll:1ui~,i",?,' le r:J0r;;etemp:::,.:.1: J.o. ,\ dc c.)Crd_!',''.:c::'O(lnC,l;'-,cau.x rotrecissements des politiquesdes monétairesmarges. devait être intensifiéee:Jtr~1 les ';-:;¥lC'"02 r-cr..tr'lles, un fonds européen de D~TC ct rcu la t Lon des eapi taux progressi"'8mc;"',~ "i.J:;,;":;cc,.·,'e ,': :. ~., .../...... /...

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24) La suspenoion de la convertibilitü du dollar ne permit pas la

24) mise enLa placesuspenGion du méca:Üsme da la cQnver~~bilit8 prév,l; nÉie..."l:!lains duaprès dollarur.e na périodepormit pas d'incertitude1a mise o~en leplaoe Markdu et mecam.eme le Florinprev'li devinro::1tnö anmc!!flottant:::'!,im> apr es une un periodesystème d d'interventions1 inoertitude oü 1ecoordonnéesr.1ark et 1e fut Florin misd en evi 'plac0nr-errt au"f'Lotrtan printempst e'! , 1972.un eys L8st emo ma.rges d' interventions de fluctuation cocrdonnöeadmises s fut étaientmis en très 'pl ace supériemresau pr Lnt emps à celles 1972. initialement Les mar'ge s de retenuesfluctuation et par là la admisesrésolution etaient det!'~s 1971superiellres n'était pasn edles respectée initialement formellement,retenues mais et ellespar restaient1a 1a resolutioninférieures de 1971 den'etait moitié à. pas celles respectee qui auraient formellement, pu êtremais obtenueselles sans restaient un tel inferieuressystème. de LesrnoitiC margesa. celles vis-à-vis qui du auraient dollar pu furentetre d'abord obtenues respectéessans un tel ("serpent s.ysteme.dansLes le tunnel")rnarges vis-a-vis puis abandonnéesdu dollar ("serpentfurent d'abord seul~'). resp8ctees Ainsi les ("serpent monnaies de la dansCommunauté 1e tunne l" ) conservaient puis abandcnnäe entres ("serpent elles des aeu écartsI"}, relativementAinsi les monnaies réduits; de lesLa inter- C6mmunauteventions conservaient avaient lieu entre en principe elles desenecsrts mammies relativement cO!!1Jnunautaires; reduits; un les mécanisme inter- ventionsde crédit avaient à trèslieu courtan principe terme rel~Y8en monna pari en uncommunau soutien ta.Lr-e à courts ; un terme'devaitmecam sme de creditpermettrea tres uncourt fonctionnementterme rel~yf sans par heurt. un soutien En juinä 1972,court leterme'devait Royaume-Uni et permettrel'Irlandeun fonotionnement se sont provisoirementsans heurt. retirés En juin de 1972, ce système,le Royaume-Uni suivis paret l'Italie l'Irlandeen marsse 1973sont etprovisoirement par la FranceretiroB en janvier de ce 1974.systeme, suivis par l'Italie

en mars25)1973 et En par matièrela France de coordination en janvier 1974, des politiques monétaires, aucun

25) résultatEn spectaculairema'ti er-e da coo n'a rd i.nat été ion obten11.des poli Lost i consultationscruas monet ai.r-ea, préalables,aucun notamment resultaten matièrespectaculaire de manipulation nta ete obtenu. de taux Las ou deconsultations système de change, prealables, n'ont notamment pas été en matiererespectées.de manipulation da taux ou de systeme de change, n'ont pas ete

reapectees. Le fonds européen de coopération monétairo a été créé par un "acte solennel"La fonds en avril europeen 1973. da Il cooperation s'agit d'un monetaire organisme a doté ete de cree trèspar peu un de"acte pouvoirs solennaletll deen moyens.avri1 Le1973. soutien 11 s'agit monétaired'un àorganisme court termedate auide vient tres peu d'être de pouvoirs élargi est et deen moyens. théorie Le incorporé soutien monetaire au Ponds.a C';8Stcourtur! termer::écanismelourdmli vient d'etre qui n'ae1argi été utiliséest en theoriejusqu'à incorpore présent qu'une au F'ond seules , C',est fois. urrSes tlccanisme r'~t'SG11r::esLour'd sontqu L d'ailleursnta ete ut i.l très i.ae limitées. jusqu'a qut present Enune ce quiseule concerne fois.la Ses li::,rerp~GmlT~~S circulë:..t..C'},lson~ dtailleurs des capitaux,tresillimitees. y a eu recul. RnDes cedérog(3.tionsnombreuses qui conc er-rie La li~r& auc~rcu12::'i.0:·1 TraHé ontde 0~é s cap accordées.i t aux , il Aucuney a eu philo-

recul.sophie Des derogß,tions commune n 'anombr-euae P',~-êtrc"~,i?;ê}g,~es au T.ra~V~ r:;1~r l~orrt SGratéfäe(~6 accordcea, à ;::,dcrptcrvis-à-visAucune philo- des

sophiecapitaux cornmune extérieur;::;.n "a :P',~'etrc·'!.":i;2g·i9 [1'[_"' '19.stI'at8p,:ie a ~dJpt0r vi s-ä-v i s des

oapitaux2ó) exterieur;::.Dans ]''.: dom.?"~r8 de J.G. p')li~i(1lJe ~i">ionale. 8.1.iCun progrès n'a

26)été accompli Dans J.'~ audom.?"~,,(.) COUI~; C::.de :;.,""r::''-''nj,; J.c:.po Lit i reque :~"p'~.r!p'ion

ete aocomp.liFonds régionalau COUl~, cuc pLi'=' .~2. ~ê,': r~·"':'T·i.i.; ,,:,' l':;~3re ,. "1~.::t:'l:1t::;~:·'IY.~. L·:>r~ :::\."',tdL::.:.'l;SGior-:sij, pc;l:'l'8.continuent0tre doté. sur Maisle on peut se demander si les ,,'T}C;1'~':;,:,.:.,:"_::;'è"""-J::,,,,>rç:;,~l:,tc,;t u,", "3é'out de conception , peu t dse 'une demander- véritable s i 1ecpoli :'e} t:i,_,~F)(.1':',.1",::1":': ~;. ~: ".,. ::~:~'.__ t., c;:: (,., :r c·::.~l:·t~-:,;~,C.: t ur,:l~:C. ,~cout de eone ept i on

d I une Ver i t ao Le po11 t 2.:: i'~ I".:ri>.: -..'~.::e:'~: .',.,'.: :.~-::.~;;';.'~'+. ~.

...1...... / ... 27 27

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Il apparaît alors bien que la première étape de l'Union économique

et monétaire n'a pas offert ce que ~on pouvait espérer. Le passage morose à une deuxième11 apparait étapea10rs sans reliefbien que ni la grande premiere signification etape da l'Union renforce economique ce sentiment.

et monetaire27) n1aIl pas faut offert admettre ce queque, l~nconçue pouvait à un esperer. moment Le où passage le s,ystème moroee monûtairea une deuxiemeinternational etape restait sans relief fondé ni sur erande des pàrités signification fixes et renforce la convertibilité, ce sentiment. au 27) moins deI1 principe, faut admettre du dollar que, congue en or,a l'Unionun moment économique OU le s,ysteme et monétaire monetaire ne pouvait internationalqu'être gravement restait fonde affectée sur par des les parites désordres fixes multiples et la convertibilite, survenus depuis au t~ois moinsans de dans principe, le fonctionnement du dollar en des or, mécanismes l'Union eeonomique monétaires et du monetaire monde. Et ne il pouvait est qu'etreindéniable gravementque affecteeles différences par les desordres de mentalités,de multiples structures, survenus depuis de niveaux trois de vie, ans dansetc. le étaient fonctionnement de nature des à rendre meeanismes diffic~le monetaires l'approche du monde. initialement Et il est retenue indeniabled'une réduction que lee differences rapide des de marges mentalites,de de fluctuation structures, entre les de niveaux monnaies, de en vie, etc.l'absence etaient de d'un nature rapprochementa rendre difficile suffisant l'approche des st~lctures initialement et d'une retenue redistribution d'uneimportante reduction des rapide revenu~. des marges D'autre de part, fluctuation le bloc entre communautairereprésente les monnaies, en par ra~ I'absenceport à d'un l'extérieur rapprochement un ensemble suffisant relativement des stntctures homogène, et d'une si l'on redistribution tient compte. importantedu rapprochement des revenu~. géographique D'autre part, et d'une 1e bloe intégration comrnunautairerepresente de fait des économies par ra~ port notammenta l'exterieur entre un les ensemble six pays relativement fondateurs, homogone, à la faveur si l'on de plus tient de compte dix ans d'union du rapprochementdouanière complète. geographiqueUne plus et d'une grande integration flexibilité da dans fait l'approche des economies monétaire notammentet financière entre les et six un pays effort~us fondateurs, grandä pourla faveur réduire de les plus disparités de dix ans structurelles d'union douanieredevaient complete. avoir été Une à plus la mesure grande des flexibilite difficultés dans à l'approche résoudre. monetaire

et financiere28) etAu un contraire, effort~us la grand CEE n'est pour reduire jamais parvenue les disparites à définir structurelles une position

devaientcommune avoir claireete a surla la mesure réforme des du difficultes s,ystème monétairea resoudre. international et par 28) conséquentAu contraire, sur la place la CEE qu'une n'est organisation jamais parvenue monétairea definir propre une à l'Europe position pourrait communeoccuper c1aire dans sur le la schéma reforme d'ensemb1e du systeme des'relations rnonetaire international monétaires mondiales. et par Cette consequentsituation BUr de la fait, place ne qu'une pouvait org~isation manquer d'affecter monetairepropre la crédibilitéa l'Europe du mécanisme pourrait occupermonétaire dans le européen schema d'ensemb1e et sa capacité des 'relations de résister monetaires au moindre mondiales. trouble dans Cette le situationfonctionnement de fait, ne du pouvait s,ystème manquer des paiements d'affeeter mondiaux. la credibilite du mecanisme monetaire europeenLe mécanisme et sa capacite des règlements de resister intracommunautaires au moindre trouble s'est dans alors le avéré fonctionnementinadapté à du son s.ysteme objet. des Il n'a paiements pas été rnondiaux. possihle en pratique de fai~e fonctionner un dispositifLe mecanisme de crédits des reelements réciproques intraeommunautairos entre les p~s européens, s'ost alors et ceci avere surtout inadaptedu faita san de objet. l'absence 11 n'a d'un pas accord ete possihle satisfaisant en pratique sur les de modalités fai~e fonctionner de remboursement un dispositifde ces crédits. da credits A partir reciproques du moment, entre en les effet, pays où europeens, ni l'or au et prix eeei officiel, surtout ni du fait de l'absence d'un accordsatisfaisant sur les rnodalites de remboursement de ces credits. A partir du moment, en effet, cu ni I'er au prix officiel, ni .../...

28 .../...

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B-l le dollar inconvertible ne constituaient plus des instruments mutuellement acceptables pour le règlement_de déficits ou d'excédents intra-européens, il devenait très difficile de maintenir un régime de parités fixes impliquant 1e dollar inconvertible ne constituaient plus des instruments mutuellement des transferts de réserves. Dans ces conditions, le "serpent" communautaire acceptables pour le reglement_da deficits ou dtexcedents intra-europeens, 11 ne pouvait être maintenu intégralement que dans'trois hypothèses: une parfaite devenait tres difficile de maintenir un regime de parites fixes impliquant coordin~tion des politiques.conjoncturel~es éliminant par avance toute possi- des transferts de reserves. Dans ces conditions, le "serpent" communautaire bilité de déséquilibre durable dans les paiements intra-européens, l'accepta- ne pouvait etre maintenu integra1ement que dans'trois hypotheses : une parfaits tion par les ~artenaires européens d'un financement réciproque illimité en coordination des politiquesconjoncturelfes eliminant par avance toute possi- montant comme en durée, la définition d'un instrument de réserves adapté bilite de desequilibre durable dans les paiements intra-europeens, l'accepta- aux règlements intra-européens et servant de base aux règlements des soldes tion par les ~artenaires europeens d'un financemcnt reciproque illimite en ou des concours intra-communautaires. montant comme en dureet la definition d'un instrument de reserves adapte aux reglements29) intra-europeensA partir de mars et servant 1913, le de mécanisme base aux du reglements rétrécissement des soldes des marges Ou desa concours changé de intra-communautaires. nature à la

29 .../...

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La C~Àse fondamentale ~ 30) Il faut en résumé conclure que les éléments externes ont La C~1se fondamentnle joué un rôle dans 1 '.échec du début d 'union économique et monétaire europé- 30) II faut en resume conclure qua les elements externes ont enne, mais ce rôle n'était pas fondamental. Si ces éléments n'avaient pas .. joue un r-öLe dans l',echecdu debut d "un i.oneconomique et monä'ta i r-e eur-ope - joué, l'Union économique et monétaire européenne aurait peut-être enregistré enne, mals ce rale n'etait pas fondamental. Si ces elements n'avaient pas des débuts moins heurtés. Mais sauf les conditions qui viennent d'être joue, l'Union economique et mon~taire europeenne aurait peut-etre enregistre mentionnées ci-dessus, la construction ébauchée serait restée fragile et des debuts moins heurtss. Mais sauf les conditions qui viennent d'etre surtout les limites à son développement seraient bien vite apparues mentionnees ci-dessus, la construction ebauchec sarait restee fragile et évidentes. Cela tient à la nature même des mécanismes mis en place, à leur surtout les limites a son developpement seraient bien vite apparues incapacité à s'adapter rapidement à des situations éminemment changeantes, evidentes. Gala tient a la nature meme des mecanisrnes mis an place, a leur à leur impuissance à distinguerl'intérêt de la Communauté de la somme des incapacite a s'adapter rapidement a des situations eminemment changeantes, intérêts nationaux. a. leuT impuissance a. distinguerl'interet de la Communaute de la somme des Il en auraitété autrement si certaines dispositions institu- interets nationaux. tionnelles nouvelles avaient été prises. _.II.~~aura.itete autrement si certaines dispositions institu- tionnelles31) nouvellesa) avaient On aurait ete pu prises, créer un orBane, investi de pouvoirs propres et agissant en fonction des intérêts d'un système européen de paiements, 31) a) On aurait pu craer un oreane, lnvest! de pouvoirs propres chargé notamment de : et agissant en fonction des interets d'un systeme europeen de paiements, charge- fixer notamment le cours da : communautaire du dollari

.fixerveiller 1e cours à la communau'ta coordinationi.r-e du véritabledo ll.ar-: (c'est-à-dire consultation préalable et non simple information à posteriori) des interventions des banques - veiller a la coordination veritable (c1est-a-dire consultation prealable centrales;

et non simple in~orrnation aposteriori)I des interventions des banques centralesjautoriser les aménagements nécessaires temporairementi , autoriserproposer les un amenagements dispositif necessaires de contrôle temporairement; des mouvements de capitaux à court terme entre l'Europe et les pays tiers et surveiller Sa mise en oeuvre. proposer un dispositif de controle des rnouvements de capitaux a court terme entre l'Europe et les pays tiers et surveiller sa mise en oeuvre. ). 32) .. b)'Hais le proßrès sur cette voie est conditionné par une réforme profonde des masures prises depuio 1972 pour assurer la coordina- 32) b)"nais ie praßres sur catte voie est conditionne par une tion des politiques économiques internes, notamment de la politique du reforme profonde des masures prises depuio 1972 pour assuror la coordina- crédit et de la politique budgétaire. Une conjoncture plus homogène ainsi tion des politiqucs economi~ues internes, notamment de la politique du que la politique conjoncturelle qui doit permettre de la réaliser exigent credit et de la politique budgetairc. Une conjoncture plus homogene ainsi une double coordination celle du développement et du financement des que la politique conjoncturelle qui doit permettre de la r€aliser exigent une double coordination cello du developpemont ot du financement des .../...

30 ..../ .....

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dépenses publiques et èelle du développement et du financement des dépenses

privées. La liberté des mouvements de caPita~\dépend des mêmes conditions. depenses pub1iques et celle du developpement et du financement des depenses Le rapport Werner avait mis l'accànt sur une conception privees. La 1iberte des mouvements de capitauX\depend des\ memes conditions. claire des politiques à suivre dans la phase final~ del'Union économique La rapport Werner avait mis 1tacc~nt sur une\ conception et monétaire et des organes communautaires\\ Charßés(de les mettre en oeuvre. claire des politiques a suivre dans la phase finale de ltUnion economique La Résolution du Conseil des Ministres de 1971, co~ indiqué ci-dessus, et monetaire et des organes communautaires charees!de les mettre en oeuvre. n'a pas repris ce point. Là se trouve une raison principale d'échec de La Resolution du Conseil des Ministres de 1971, co~e indique ci-dessus, l'harmonisation des politiques économiques et-, de la lutt~c?mmune contre n'a pas repris ce point. La se trouve une raison principale d'echec/ de l'inflation. l'harmonisation des politiques economiquea et da la lutt~_c?mmune,/ " contre .> l'inflation. Les procédures de consultation devraient, pour être efficaces, déboucher sur une-: instance de décision capable Les procedures da conaultation devraient, d'infléchir, dans l'intérêt général, la conduite de la politiaue économique pour etre efficaces, deboucher sur une instance de decision capable de chaque Etat membre. Gela n'est possible au'au prix d'une modification d'inflechir, dans l'interet general, la conduite de la politique economique du contenu actuel des traités. L'expérience montre qu'il ne serait pas de chaque Etat membre. C~la nIest passible autau prix d'une modification suffisant, à cet effet, d'introduire la règle de vote majoritaire au du contenu actuel des traites. L'experience mantre quli1 ne serait pas niveau du Conseil. Pour que des décisions majoritaires puissent être suffisant, a cat effet, d'introduire la regle da vote majoritaire au imposées aux Etats minoritaires, il faudrait encore que ceux-ci puissent niveau du Conseil. Paur que des decisians majaritaires puissent etre compter Bur une large Bolidarité financière à l'échelle de la Communauté. imposees aux Etats minoritaires, i1 faudrait encare que ceux-ci puissent compter33) BUr une largec) solidarite Il n'est financiere en effet pasa l'eche11e possible d'imposer de 1a Communaute. à l'un des membres de la CEE des décisions contrairesà ses intérêts économiques immédiats 33) c) Il niest en effet pas possible dtimposer a Itun des membres ou susceptibles de l'exposer à des difficultés politiques internes, si da la CEE des decisions contraires"a ses interets 8conomiques immediats cet Etat ne peut compter sur une splidarité financière effective de ses ou susceptibles de 1'exposer ades difficultea politiques internes, si partenaires, permettant de répartir, de façon équitable, entre tous les eet Etat ne peut compter sur une splidarite financiere effeytive de ses membres de la Communauté, les sacrifices imposés par l'intérêt général. Pour partenaires, permettant da repartir, de fa90n equitable, entre taus les que les pays de la CEE puissent suivre une ligne commune en matière membres de 1a Communaute, les sacrifices impos8s par l'interet general. Pour économique et monétaire, il est indispensable de pouvoir procéder, par que les pays de La CEE puissent suivre une ligne comrnune en matiere l'intermédiaire du budget de la CEE, à des transferts importants de econornique et monetair8, i1 est indispensable de pouvoir proceder, par ressources réelles. 1'intermediaire du budget de la CEE, ades transferts importants de reSSOurces reelles. C'est en définitive, une mutation de caractère politicrue et institutionnel qui aurait été nécessaire pour surmonter les difficultés Glest en definitive, une mutation de caractera politioue et inatitutionnel qui aurait ete necessaire pour surmonter les difficultes ...1...... /...

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rencontrées par l'Union économique et monétaire depuis 1971. Les chefs

d'Etat ont pris conscience de cette nécessité lorsqu'ils ont évoqué la rencontrees~ création par d'une 1'Union véritable economique Union et européenne. monetaire Mais depuis ils 1971. n'en Les ont chefs pas précisé d'Etatlecontenu ont pris et conscience en ont renvoyé de cette l'étude necessite à une lorsqu'ils date ultérieure. ont evoque la

~ creation34) d'une veritableCependant, Union si europeenne. l'on veut éviter Mais i18 quen'en l'Union ont pas économique,et precise lecontenupeut-être et en même ont la renvoye politique 1'etude agricolea une commune date ulterieure. et l'Union douanière, ne 34) régressentGependant, à l'avenir, si ill'on estveut probable eviter que que le l'Union saut doitêtreeff~ctué economique, et d.ès peut-etremaintenant. meme la Il po1itique pourrait agricole être limité commune à trois et l'Union secteurs douaniere, bien déterminés ne qui r~gresaentn'exigenta l'avenir, en aucune il façon est probable une union que politique 1e saut complète. doit.etre~ffectu~.d.es_

maintenant.- Le premier 11 pourrait concerne etre les limite responsabilitésa trois secteurs des banqueß bien determines centrales qui, qui tant n'exigentdans en le aucune domaine fagon des une changes union que po1itique dans celui complete. des taux d'intérêt, devraient - La premierêtre soumises concerne par les le responsabilites moyen d'une banque des banque~ centrale centrales européenne qui, à une tant danssupervision le domaine des communautaire changes' que dans dans la celui mesure des nécessaire taux d'interet, à la réalisation devraient etredes soumises objectifs par 1e de moyen l'Union d tune économique banque centrale et monétaire. europäenne a. une

supervisionLe deuxième communautaire concerne surtout dans 1a les mesure politiques necessaire budgétairesa la realisation qui, au double des objectifspoint de vue de l'Union de l'importance economique des et masses monetaire. budgétaires,et du mode de finan- Le deuxiemecement des concerne soldes, surtout devraient les po1itiques également être budgetairea soumises gui, à une au supervision double pointcommunautaire devue de 1timportance par le moyen des d'une masses instance budgetairesLet de décision du mode communautaire de finan- en cementmatière des soldes, de politique devraient économique egalement et etre qui sera soumises nécessairea une supervision beaucoup plus communautairerapidement par qu'on 1e moyen le pensait dtune à instance l'origine. de decision communautaire en

matiereLe troisième de politique concerne economique le budget et qui ~e sera la CEE necessaire qui, doté beaucoup de ressources plus I rapidementpropres qu'on élevées, 1e pensait devrait,a l'origine. sous le contrôle d'un Parlement européen, Le troisiemeêtre l'instrument concerne 1e d'une budget égalisation ge la CEE des qui~ charges dote de que ressources la réalisation de I cette union impose au~ Etats membres. propres e1evees, devrait, sous 1e controle dtun Parlement europeent

etre35) l'instrumentCes dtune mesures egalisation semblent des néanmoins charges nécessaires que 1a realisation pour relancer da non cetteseulement union impose l'Union aux économique Etats membres. et monétaire, mais par l'intermédiaire de celle-, 35) ci, égalementCes mesures la Communauté semblent dans neanmoins son ensemble. necessaires La stagnation, pour relancer qui a non seulementcommencé l'Union vers economique la fin de la et période monetaire, de transition, mais par l'intermediaire était due avant de tout celle-, Ci, ega1ementà la carence 1a Co~~aute de la coordination dans son des ensemble. politiques La stagnation, conjoncturelles qui a et monétaires. Toutefois, la réalisation d'un marché communautaire absolument commence vers la fin de la periode de transitionJ etait due a.va.nttaut a lalibre carence et de l'élaboration la coordination d'une des politiaue politiques structurelle conjoncture11es commune et se sont monetaires.également Toutefois, heurtées la à une realisation résistance d'un souvent marche opiniâtre. communautaire A mesure absolumentque libre et l'elaborat ion d 'une poli t Lque structurelle commune se sont ega1ement heurtees a une resistance souvent opiniatre. A mesure que .../... 32 .../... 32

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l'attentionse concentrait sur les problèmes économiques et financiers,

on enregistra même de moins en moins de progrès dans ces deux secteurs. Rien l'attentionsenepermet concentrait de penser BUr qu'il les problemes en sera autrement economiques à l'aveniret financiers si det meilleures on enregistraperspectives meme de moins ne devaient en moins pas de s'ouvrirprogres dans à l'Union ces deux économique secteurs. et Rien monétaire. ne permet de penser qutilCette en sera dépendance autrement esta double.l'avenir Si si essentielles de meilleures que soient les perspectivesréformes ne devaient examinées pas s'ouvrir plus hauta pourl'Union la relance economique de l'Union et monetaire. économique et monétaire,Cette dependance son développement est double. futur Si qui, essentielles sans aucun que doute, soient n'en les restera reformes examineespas moins plus parsemé haut d'embûches, pour la relance sera de également l'Union tributaire economique de et l'activité qui ,- monetairetsera son developpementdéployée dans futur les autres qui, sans secteurs aucun de doute, l'Union n'en économique. restera Enfin, il pas moina parest seme difficile d'embilchest d'imaginer sera egalement une coopération tribl1taire européenne de l'acti plus vite active qui " dans le sera deployeedomaine dans de les la autres politique secteurs étrangère de l'Union si des economique. progrès sensibles Enfin, il ne sont pas est difficileréalisés d'imaginer dans celuiune cooperation de l'intßgration europeenne économique. plus active Pour dans toutes1e ces raisons, domaine d~un lanouveau politique départ etrangere mieux si préparé des progres de l'Union sensibles économique ne sont et pas monétaire est le realisea dansseul celui moyen de d"atteindre l'intßgration 1 'objectif economique. majeur Pour que toutes constitue ces raisons,1 'Union européenne, un nouveauque depart les mieux Chefs prepare d'Etat ouedede IrUnion gouvernement economique réunis et moneiaire à Paris en ast1972 le ont inscrit seul moyenau d"atteindre programme1 detobjectif la prochaine majeur conférence que consti au tue sommet I 'Union prévue.eur opeenne pour1975. , que leB Chefs dtEtat oU2de gouvernement reunis a Paris en 1972 ont inscrit au programme de la prochaine conference au sommet prevue pourl975.

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Document rédigé par L. CM~U

Document redigeDocument par written L. CAMU by L. CM~ Document written by L. CM(O

1. La recherche d'une unité de compte européenne par les

1. La rechercheopérateurs d'une unite de campte europeenne par le8 operateurs

35 35

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L.\ nLCllEHCI!EL.\ RLCiIEnCI~E ;)' U~~E l!~nTE i)'lPŒ Df. l!~ITE Cn;,p'TF Ils Cn;,p)TF ~";~Jr.()!)EE.'J'~E r:~m()!)EE.T~E PAR------~------U:SPi\------tlPERATElJRS R U:S OPERA TElJRS Louis CamuLouis , i'rtsillent Camu, l'Tl~sident cic IR Patiennuc la Brtnouc ek ll ruxcde Ll J\ruxcllese s

L'abantlonL'abandon du rGgime ùu régime des pa rdesi t ö s paritésf i.xc s , fixes, Le s f Luc lest unfluctu:ttionst ion s (1(~50r- r1(~sor- Jonn6csJonn6cs des coursdcs descours chnnrcs,des changes, c~ cn pnrti~111icr et en pnrti~11lier1c d~lnhrcmcnt le d~lahremcnt r(ccnt rGc.cntdudu do I l.a r ,dollar,ont c ons onti l16rn.hlcr.wntconsil16rn,hler.wnt'ac cru los ~;iccru r i slesq uc s risqnes 1i:~s li:~s aux placementsaux placementsen tlc~iscs en ùe~iscs ftrang0rcs, ftrang~res, et Jonncnt et donnentllinsi un ainsi regaln un regain d'actunlited'actualité aux tcchniCjucsaux techniquesdc cotlvcrturc de couverture:contrecontrc lcs ri<;rtuc~dclcs ri s

POUT lcsPour opCratio~sles opérations cornDcrci31cs~ cOTImcrciales,lcs m6thoJcsles m6thotlcsordinnirc5~ordinaires, ba söcsbasées sur 1e surrcccur le s recours aux uar auxchö s r.larchés:lterme:t terme des dc vi desscs devises suf fi sent suffisent gcn~r;11cmcnt.gén~ralement. Hais pour Hais les pour p ln lcs c cracn rl<1cementsent s c n oh l 'io a t011lin~ltjons,i ons , il taut il Ç'aut

rechereherrechercher d'autrcs d'autresformu.1es, formu.1es,enCll r a i s on raisondc La dutJer ö lae plus dur6eLon pll1so uc lon:'uc oe cc s J.eoperations, ces opérations,que n c quepcuvc nen t peuventc ouv r i r couvr.irles Jn:tTC'1(S les m:nc11(s ~ t.c rric ~ tcrr:c elest ainsic'estquc ainsi50ntquenecs sont lcs nées differentes les c1iff:rentest1Unit(s "1Jn:iti~sde comptc!1 d.e compte" u t i Li sricutilis0css dc pu i s depuis 1061 d an1061s des dans örai dess s Lort 6nissionss des s e ct dessectcllrsc n r s PUlllic puhlicct et prlVC. prlVC.Trouvaicnt-cllcs Trouvaient-clles lcur place leurdans placeles danscffort~ les effortsJ'intf~rRtion J'int0~rRtion monö t a'imonGtaircr o our cpö crmc curopóenne, , 21 l'inst:H~ l'instardc s un i Jest ö s unitGsdc c orap det c COJ~ptc offi.ciclle-officielle- mcnt cmpmcntl ovöe employées s da n s le dans c a d r le c Je cadre La no ùe Li lat i.quc T)01itiqucilp:rieolc ap:ricole cormunc COI7lJ'1Une,I c t c on sett Ltconstituaient-elles ua Lon t e o l Lo s unc r6pon·:o--:une r6pons-: v a l.ab Le valable des 01'(ratc_llrs des op.:.rate.llfSd e van t clevant l'6chccl'6checdc 5 pol desi t iquc politiques5 CU rop öecurop6cnncs?nric s? Pcu t-o n Peut-ony t rouvc y rtrouver,t noyc nnan Doycnnantt les modificationsles modificationsappropri6cs, appropriées, l'csquissc l'esquisseJlunc solutiond'une solutionall proh10au pro\110 a c t.ue l,actuel du placement du placement c t du r ete cvc dul ar;c recyclage des petrodoll:lYs, des p6trodol1;lrs,olle 1.1 01lCmau- la - mau- :j V\liSL; tvaist.:c nuo du tenue clol ldua rdollar ri s que risquedc nor-t dec r porter:j s ' invcs s'i!1vec;tirti r Cp .IH-f., CPen l)1f., en francs francssuisscs suisscs ou cn francsou en francs frnn~ni5,français,GvcntuellcncntGventuellcncntcontrc contrl;lc gr~ le gr'': j I.k':; au tdesor i t aö 1.1tors no uötést a i 1~1011~tr o s (~C a irec c 5 s tie n.1.V<; ces? 1).1.ys?

I. - 1~6s·~1.t<.lts1.- E6sultats des tcntativl!Scles tentativt.:s.l' integration (l'intégrationmorie t » imonét;drcrc

Ces r ö suCes Lt a résultatst s SOllt -sont J:1I1S -LcI..hnss Ea Ltles s - faits (i,~cc\'ants.-

;;ntrc Lc::ntre p r cm leicr prelitÏcTp l a n ::!nnifir:~tion plan ~:'unificat:i.on;:,on(t:11 ;,;on(t:1irc.l'i).

:.l • r~a ymi,t.0 n d r~aymondj) a r r c c Barre n 1 S G:; en .: t lSGS'1 :l f .::tlai n 1:1 n, fino 1074, n n C I oni ,- C":: (list C1iTc-:;istr': r -: n ) u « (1e n]\ls (le ch a n g cmc ch;Jngcf:lentsn t s d c nctTit6s de paritéso f f i.c i.coHiciellesl l c s c1~~clnrJGs (1~~clnr.!cs(c;t ilc; (etv.t r i der t i ,,",";ri'1t.ionso n s der: der; cours entrecOIns r.roentrenna icr,lOnna~_cs s dc 1::1 C.f:.~:. de 1::1 C.E.::.plus ~1T.l;)le<;) T'lus :trl!)lcsj (J\l'cntrc (]l1tCntrc1~)S') c:t 1~)S') et 1968. 1968.

37 37 91 / 140 20/10/2014 C-l C-1

c ' esc't-J.-dire est-il-direpcnda pendant, nt, Lc s les p rcnri.ö nrcmièrcs rc s annö années c s dc de l' cx l'i existences t cnc c du dl! ~Iarehe ~Iarch( CommunComr.1Un. , Le 1.e !·.rarl~ I..lark a l Lcraand alleT.1and, , 1e lefJorin,.lc fI orin,. le franc francsu i sus s i e sse et ctlc lef r anc fnmc . . , hcl~chelge ontont Gt§Gt~ r6Gvalu6s,r66valu6s, tandistandisQUC quese se d6valuaicntd6valuaient In la livrc livre sterIilsterlit ~ i lala lire lire et et lc le franc' francfTan~nis. français. CesCes troistrois dcrniares derni~res mannaies monnaies sont sont rest€csrestées. cn en fait fait dans dansl'orhitedu l'orbite dudollar dollaret et.ont ontahandonn6 ahandonn6 l'apparte- l'apparte- .." nanecnancea Ja à J zone a zone mone monétairet a i.ro. cur européenne, opücnnc , r:5trccic r6trécie June ~ unez one zonè i'brk, è1arJ~, ; I 3. laquc~ laquelle llc s' at s'attachaientt acha icn t quelqucs quelquesmonna monnaies.extra-communautaires.I os cx t rn=communaut a i r es , th E~En 1970, 1970, la la Comm Commissioni S s i on Werner WernerrGdigc1li rédigc-nit unun r appo rapport r t comportant comportant

un uncal,cndricrcalendrierdont dontl'al?outisscmcnt l'ahoutissementetait était prevuprévupourpourlCl30. ln~(l.Ce Cc plan, plan, qu iquicompo comportaitr t a i t not i1.otammcntammcn t l' ab l'abaissement-ai.s seincn t- p ro progressif grc ssIf desdes na rrtc nar~ess dc cie fluctuation,fluctuation,dc defaC;.on faç.on"dö "d0finitivef in i t i ve et ct Lr rö irrévocahle" vo cah le " fut fut;1dopt6 ;1c1opt61e le 9 f6vricr9 f~vrier 1971~1971'~11 Iln'cxcluait n'excluait pas pas la lamodification modification desdes parit6sparit6sOll ou t auxtauxccn centrauxt raux dan dans s ce.r certaint a in s cas s cas~:ruvcs. ~r.raves.En Enmai maid e deIn laTIlGme mêmeanne année, c , la lamarge marge de defluctuation fluctuation du duDM.~'puisDM.,·puis.dudu florin,florin, sautaitsautaitcornmc commeun un vcrrouverrou trop tropfaible. faihle.

EnEn avril avril 1972,1972,un unnou~clnou~el accord,accord,touj~urs touj~ursPOUT pourIa larSduction r~ductiondes des margesmargesdcde fluctuation, fluctuation, ct· et.u~e uneconccrtation concertationsur surles les.op~rations .op(rations dc de sccourssecOUrSmutuclle~ mutuclle~ ~ntrc entrebanqucs banques ccntralcs, centrales, 6tait 6tait conclu. conclu.TIn Enjuin juin dede la larriGrae mGmeannöeannéedej déjaj a; lala 1 ivre livredric ddcrochait,rocha I t , La la Pr ancc Pranceren renforçaitf or ca l t le lecontr6lc contrôle desdeschangcs,changes, la laeOUTonnccouronnedanoisc danoise prcnait nrenaitdu du champ champ. • .En. En 1914,1914, le leflottemcnt flottementdes d~strois troi~monnaies monnaiesparmi parmilos les plus plus \ \ irnportantcsimportantesdc de la laC.E.E. C.E.E.a d6truit a détruitl'illusion l'illusionrlc decohfrcncccoh6~ence et etde de

stabilistabilitéde tG .de 1 t e 1n'ensemhle.scmb Le , I'.fcmc IlJêmeu l'ilLn l't intérieurö r Leur de deIa laconcertationconcertation dfnommcedénommée"serpent", "serpent",lapossibili lapossibilitét6 dc demorl modificationi f Icn t t on des dest aux taux ccn- cen- truuxtraux cntrcticnt entretient uneune inqui6tude,inquiétude, qui qui rcnd rend ]e )esyst~mc syst~mcfragile. fragile.

LaLa limitation limitationd6clar6c déclar6edesdesmouvcrncntsmouvementsdc de change change continuscontinIJsn'annn, n'Rnnn,

tcte guere guère Je de confiancc confiance ou oud de garantie,lorsClueT' l'onsai snit.t ntl0011('df'<; mr'llil c garantic.lorsoue on dl"" mrl1" merrth1cnts discontinuss discontinusplus plus suhstanticlssubstantie1s son sontt po s posi.b s5ihles.l c s , !\u MImoindrc moindre J

i.ndindiceicc Oll OllcommcncOJllmentaire tu i r c Lnd indiquantiquan t ccttc cettepo spossibilit.:), s ibi l lt ü , 1e le r i snuc risoltc dc de chunchangé gc 'augme 'au~menten t e c t etavc avec c Lui luiLa la'cha èhance ncc dc de vo i voirr so sc ren] réaJj s ciserr In la modmodificationi.f i ca t Lou du dutaux taux pr övuo pr6vl1e. ,

LeLe sccptic scepticismeismc desdes opö Opt~ r a tcursrateurs au raurai a i t put puctrcêtrea t tenne atténuéparP,H 11 cx l'i exis- s. .tcnce.tence d'und'unorg~nismc orginisme ccntra!, tentral,1e let:Fend '~FondEurop6cn Europ6en de de Coon~ration Coon~ration ~on6taire't,Monétaire",(FnCO~)J (rECO~),qui qui cOt catdisposG disros~ da de moycns moyens suffisants suffisants pour pour

i.nt interv'cnc rvcn t r ire n en monna n10nnaiei.o s dc s depaypayss mcmb membresre s dc dela laCommun COr.1l11unauté.aut d, Hais Ha.c is. c t cc t orgariismcorgariisme estest an6mique, anémique, ct etrnßmcmGmcsesses interventionsinterventionsutilcs utilesn'insni-. n'ins~i-, re ntrentaucune aucuneconfiancc confianceen enraisonraison de del'6troitcsse I'Gtroitessedcde sos sesmoyens. moyens.Tl IJ

enen va va dc demcmemêmedc 5desco ncconcours ou r s a. couril courtt t e rmc terme ent entreTC ~~anfluc Banquess Ccn Centrales.t Tale s.

),8 92 / 140 20/10/2014 J 0-1 0-1 Aujour~'hui, le zone mon6taire du Nord - la zone D~1. - ne AujourJ'hui, le zone mon6tairc du Nord - la zone D~'. - ne correspond plus,a la C.ll.E. et sa monnaie dominante est trop forte corrcspond la et sa monnaie dominante est trop pourplui.n faire croireC.ll.E. à la stabilité. forte pour faire croire a la stabilitc. Par ailleurs, la politique monétaire commune n'a apporté aucunc Par aillcurs. 1a rolitique monetaire COJ!1mune n'a apporte aucune amGlioration a la liherté de circulation des capitaux, ni meme a J. In de circulation des caritnux~ ni meme il amGliorationla coordinationlihcrtcdes limitations imp05~cs ~ cette libcrt6. Aucune

la coordination des lirü t.a t i on s Lmposrie s l\ cctte Li.be r t ö , J\ucune distinction ne fut faite ùn faveur d~ la libre circulation intra- distinction fut d~ libre circulation ihtra- cOli1munautairc,ne faiicet ~n lesfaveursuspicionsla ou spéculations d'origine extra- coumuneut a Lr e , e t lcs susp ic i ons ou spöcu l a t ion s d'orip,inc cxtra- cOI:~munautaire ont pu am]Jli fier les !'entiments d' instaniU té déj D conmunaut a Lr c ont pu arnp Li f i er Lcs sen t Iment s d ' instahilit6 dejii suffisamment ?Bnantcs a 'l'interieurdc la C.E.E. La mise en ocuvr. ~Bnantcs 3 ·l'int6rieur·dc C.E.r. La mise suefisammcntll'actlvités financières communautairesIR (huc1g.~ts, fon

elle-neue une Lmpo s s ib i Lit ö dcpu i s p Lus i.cur s an nf c s , La conclusion est évidente ;le5 op6rateurs estiment que l'intr La conclusion est 6vi~~ntc ; les op6ratcurs cstimcnt quc l'int~ gration monetaire de la zone C.E~E. - zone opth1ale pour toutes gr a t i on monö t.a i r e dc In z one C.E.E •. ·- zonc op t ima l c POUT toutcs les raisons décrites par :iundell - n'cxi$te que dans l'Europe de~ Lc s r a i son s dö c r i t os par :iundcll - n "cx i s t e qucul an s l' Fltrope dc s discours. discours •

.11.- Les solutions pratiques trouvées par les opérateurs .11.- Lcs solutions pratiqucs trouv6es rar les op6rateurs La remise en question du dollar - la monnaie la plus ~tilis~e , ~'- ' La remise cn qUCSti011 ciu do l La r' - In monn aic La plus ut i Li s öe . en rnati~re. d'euro-6mission~. ~.~ . et la clé devoOte dusyst~me - et cn rnati~rcles d'euro-6rnission~ .3checs des 11roj e ts et d' la un cl6 ifica dcvoOte tion l:1onétai dusystamc re européen,ne, - et ont les 0chccsincitédes lesprojets banquiersaJ'unificationuon6ta~rc imaginer des formules curopGc~ne, susceptibles ont d~ incit6 les banquicrsl imagin~r de~ formulcs susccptiblcs d~ procurer il 'l'investissement interna,tional une I1rotection co6tre proeurer a '1' inve s t i 5 scme nt in t c r na.t ionnI une p r o t c c t i.on co;~tre les risques de change. Cette protection a pris la forr.lc cl' unités Le 5 r i sque s de change , Ccttc protcction a pris 1.1 f ormc cl t uni s con~osites englobant les principales rno~naies europ6cnnes,te ou compo s i t e s cng l oban t les p r inc i.pa l c S morma i.c s cur opö cnnc s , Oll d'aggrégats de devises' nationales de la Communauté.- ..,

d I agg rfiga t s dc dcv i se s na t i.cna 1c s dc La Communaut ö ,: L'unitG J~ compte (lJ.C.), cr66c en 1961 p~r la Krediethank, L'unit6 ~~ compte (U.C.), cr66c en 1961 par la Krcdiethank aprDs du longues ~tudes au sein de l'Institut Internationalt d' aprDs duEtudes loneues ßancairc~, ~tudcs au constituesein dc I'Institut une adaptation International ori~inale d'au domaine Etucles nancairc~,privé d'unitGs constituc utilisées une adaptationdans les relations ori~inale entre au dOMaine Etats, d'abord priv6 d'unitGsdans leutilisGcs cadre de l''uniondans les europ~cnnerelations des entre payements, ftats~ diabord puis '"au sdn dil d an s 10 Harchécndrc de Commun.'l'Union Lacur formuleopö cnne initialedes paycmcn utilisf:et s ~ pu enl s " 196131.1 SCl reposaitn du en i t i i i t Harch6 Communeffet, , ' sur La les formulc monnaies i.n desnl c 17ut pays'mcmhresl.d s öc e n 1961 de rcpo l'U.L.P.sa en ~ présent c f I'e t , surdissoute. Le s monn La a i.o formule s dc s 17 rnodifiGc, p aysv mcmbrc utilis~c s dc l'U.L.P. depuis lefi. p déhut r ö se.nt de 1973, di 5 saute, La formule motl i f i öe , uti lis0c dcpuis le d6hut dc 1973, et [art proche de là notion de l' uni té de compte agricole de la ' ct Fort; Communauté,proehe dc In est not fondée ion dc sur1 tun lesi t6 monnaies de compte des a gr 9i co I:tats 1e Ge mcmhres 1a . de la Communaut e test fond6e sur 1c s morina i e 5 dc s 9 tta ts mcmbr c S Ge 1<1 C.E.E., pour Butant qu'elles rdmplisscnt deux conditions: 3) avoi . t pour aut~nt rdmplisscnt 0) avoi C.E.E. une parité ;qu'cl1cs b) voir ses' ..ours surdcux les conditions marc~lés des : changes 1T1ainte-

une p ar Lt ö ; b) voir s c s ..ours sur 1es mar chö s des chnn gc s maintc- nus J l'intdricur des mat :es de fluctuation ~tahlies l'ar le (onsei nus J l' Lnt d r i.cu r des mar .c s dc (luctu::ttion'H) ö t.ab l ies llar 1(' f:onsci ·H') 93 / 140 20/10/2014 C-l C-l

des des\lini.strc5 'lini.stres dc Inde C.LE. la C.E.f:. (c'cst-il-dirc(c'est-il-dire :1 l'intGricurli l'intGrieur du scrpcndu serpent).t ) . Si cesSi cesmonnaics monnaiessortent sortent du serpentdu serpent ou n'ontou n'ont plus plus dc parit6,de parit6, elleselles pcrelcntperdentautomatiqucmcnt automatiquement 1e statutle statutde lJ10nnaic de )J1onnaicdc rcfcTcnce.de référence. La La conscquenccconséquence pratique,pratique,a l'heurc il l'heure actuci~c, actuei~e, e'est c'est quc qne le franc le franc fTan~ais.français, In lire, la lire, 1a livre la livre sterling sterling et la et livre la livre irlandaisc irlandaiseont ont ... perduperdu ce statut,cc statut, ct quc et quel'U.e. l'U.C.est estmomentanemcnt momentanGmentli6e liée aux auxcinq cinq monnmonnaies a Lc s rc s t restantes.arrtc s , En c En a scas dc flottcmcnt de flottement dc toutcs ùe toutesLc s lesmcnn monnaies a i e s (hypo(hypothèset hc so d'ahnndon d'ahandon du "pe ùut "petiti t sc rpcnserpent'!)t") f'U.e. l'U.C.sc r aseraiti t a s s i assimiléern iLö e a lailplus la plus stahle stahled'cntre d'entreellcs,'dcpuis elles, .depuisIa date la date d'6mission d'émissionjusqu'nu jusC]u'au momentmoment 00 iloùy ilaurait y aurait} ~ nouven" nouveaudes desmonnaics monnaiesde r6fGrcnce. de référence. En dehorsEn dehorsdcquelquc5 de quelquesJiff6rcnecs différences dans dans l~application, l)application, l~s l~stech- tech- niquesniques des desdcuxdeux formulcsformules d'U.C. d'U.C. son t sontLdcn identiqÙes.t i quc s , , L'U.C.L'D.C. est est 6galcégale ~ una'poielsun poidsde 0,888161de 0,888761 grammc gramme d'or d'or fin finct peut et peut ai n sainsi.i 6trc êtreexp r exprimée Lmöc d an s ùansles les.monna monnaiesio s pa rt participantesLc i.pan t c s pa r p:trLc b le.1"1iai5ia i s desdes d~finitions dGfinitions officiclles officielles ou des ou des taux taux centrRUX. centraux. Les Lesrelationsrelntions entreentre U.C~ct U.C~Qt monnaies monnaiesIn composant, la composant, cxistantes existantes RU moment nu moment d'uncd'une ömlssémissionion cn uneni t unitésüs dc campte, de compte,con s constituentt i t uc nt lcsles "pa r "paritési t.d s da T')3.50"de l;asc" : : une unemodification' modificationdc la de d6finition-or la définition-or dc l'U.C. de l'U.C. nc neut ne neut intervenir intervenir que quesi dcux si deuxconditionsconditionssont sont simultnnemcnt simultanémentTcmplies remplies :' toutcs : toutes les les monnaies ont ùe nouvellesdGfinitions d6finitions officielles diff~rentes de rnonnnies, ont do nouvcl1cs officiellcs rliffrrentes dc , " . loursleursparit6s pari tésde hasc~ de base,ct une et unemajdrit~ maj o'rH:êde modifications de modificR tion (les5 (les dcux- c1cux- tierstiers dnns dans la premiere la.prcmière Eormule, formule, 1a majorite la majoritédescles S monnaics S monnaiesrestan- restan- testes dans dans La scccndcla seconde) ) intervicnncntinterviennentdans dans1c mßmcle mêrac sens. sens. (testr.' est 10 le plusplus petitpetit changcrncnt changement const~t~ constat~ dans dans 1e graupele groupe rnnjoritnire majoritaire qui qui sera sern appliqu6appliquéa l'U.C. a l'U.C.

L'applicatiollL'application Je cesde cesTi~glesr(~gles dan sdans In prn la tpratiquei quc s iqn si~nifiei f ic (111C quei'u.r, i'u.r. c st estrc stüc restéeinchangGc inchangée pour pourt ou stOltSte s lescnp run cl:1prunt'5,t s , s anf saufLc s lcst r-o i troiss pre- pre- mi ermiers s (2 cmpr (2 clI\pruntsun t s sJ\r.onSAr.Onc t unet cmprunt un empruntdc 'laden[lnquc la nnnqueConununn Communalele dc de ~I

Norvt}glJ,Norv0ge, qu i quiö t aIcrrtétaientsoumi soumis s ,.:1 .le .:1s lIes,rCnlC5 règlesspöc 5pécialc$iaLc s dc mod dei modif ica- fica- tion).tion). " La röLa s Lsrésistancet ancc au chanucncau changemcntnt dc l'O.C. de l'tI.C. c s t estclone donct c l l.c tell,Çqucque 1e le po r tporteurc ur d'ohli~rnti.onsd'ohligations Li.bc libellées Ll ö os cn uneni t unitüsö s dc c

r-c vcrcvenus'~xpriJ:lés nu s i c xp r i mds d an s dans su no sanria llonnaiei c nu t i.on nationé11<.;. a l c ,

40 40 94 / 140 20/10/2014 C-1

C-l L'investisseur dont la monnaie nationale a ~té rG6valu6e o,u dGvaluGc. sc trouve donc ~ans une situation i~cntique 5 tout invcs L' Lnvc s t i s scur clont La monna Lc nütionalc a 0t6 riJ6val1l8e Oll tisseur en devises Gtrang~rcs. Par contre, le rjs~uc li~ ~ un~ dGvalu~c, sc tra~vc done ~aD5 une situation i~cntiquc ~ tout invcs Iilodi fica tiOn de pari té d' une monna.ie Gt rangèrc se trouve 1inti t~, tisscur eil. dcv i se s 6trangercs. Par co nt r o , 10 ri 5f~UC 1i':-:~une étalé en principe sur le.s neuf monnaies curop6ennes. uod i f i cat Lon dc pn ri tl~ d ' une monna.i.c 6t rangC!rc s e trouvc 1 illli t~, 6talG cn principcLe pr~teursur l~s trouvait ncuf monnaics dans cette'formulecurop6cnncs. un avantage psycho1o- nique, et l'er.lprunte~r .sophistiqu\J un aval\.tage de taux: elle eut Le pr~tcur trouvait dans cetteformulc un avantage psycholo- donc un certain succ~s dan~,le domaine Jes émissions internatio- g i que , et l' eraprunt.eur -s oph i st i.quö un avant agc de t aux : elle eut nales. puisqu'elle fut, employt:e, entre 1961 et janvier 1<)75, dans done un ccrtain succ~s dan~.le domaine des 6missions internatio- 54 émiss ions puhl iques totalisant 729 mi llio-ns d'Tl. c. (équ:i valan t nales. puisqutelle fut· cßlTlloy(;e, entre 1961 ot j(lnvior 1075, dans à 877 millions de dollars). Des entreprises puhliques et privées 54 emissions puhliqucs totalistlnt 719 millio-ns d'U.C. (6qu:ivalant de pays aussi diffórents que le Danemark, l'Afrique du S~d, , a 877 mi11i'ons da dollars). Des. en t rcpr Lsc s pub liquc s ct p rivüe s l'Autriche, la Norvage, l'Irlande, l'Italie, la France, le Portugn dc l")ays au ssi d i.Ef ö rcn t s quc 1c Danemar k , l'Afriquc du Sud , , l'ont'employée.",. Cc qui nrouve l'0tendue géoRraphique du he50in de l'Irlande, l'ltalic, 1a Porturn' l'~utrichc.stabilité. la Norvegc~ Mais le total de ces émissiorisPrancc, reste 1c insignifiant l' ont 'cmploy6e. Ce 'qui nr ouvc l' 0.tcn<11.10 geogTaphiquc du hcsoin dc (3,2 % seulement)par rapport il cc lui

Conscicnts des limitcs de In protection oIfeT"!;c par l'lJ.C.t l'E.C.U. L'a diff5rence essentielle r65idcdans le fait que T10ur les , hanquicr~ imaginarent Vnc au~~cUnitG':lon6tairc' Euron6cnnc un emprunt libelléen E.C.U., les parités de base exi!"tantau 1 '::.C.U. L'a di[[5rcncc essentielle r ös i de da.n s Lc f a it q ue nOUT moment Je ,l' émission restent valahles pen(lant toute la durée' de UI1 cmprunt libelle cn E.C.U., les pnrit,5s de base cxistant an l'chlprunt. VE.C.U. ne constitue rien rl'au1;re qu'une, applir.ation moment JC,l'Gmission restent ~al~)lc5 pcnrlant taute In dur6c de spécifique de la formulb classique d'option de chanqe, rnttach6e l'clLlprunt. L'E.G.lJ. nc constituc rien d'llutrc. qu t unc. app li c at i.on il une lIouvelle 9énolî1,inl)tion~ L'invcs~isseur ne sc trouve plus spöc i.f iquc dc I a fo rrnu Lc c l u s s i.quc d'option dc chano o , r n t t ac hdc seulement prot6gé contre une d6valuation desa propre monnaie, il une u ouve Ll.c dönoim na t i on , . L I Lnvc s t i s scur no sc t r ouvc plus Ji):1is il profite ér,alement (le toute r(~évaluation d'une des monnaic'., sculcmcnt prot6g0 contrc une d6valuation dcsa propre monnaic, de référence. IH.1is il profite 6r.a1cmcnt de taute r(~6v:lluati()n d'unc dc s monna i c « dc ru forelle<.:. Les 'parités uti lisées (3taient' celles appliqu'-;cs entre les 6 monnaies \le la C.E.L. et le dollar'aumomcnt oÙ l'émission Les 'pa ri t (55 Ut i 1i S0es,) ta icn t .cc 11 c 5 .t 11])1iq u ~c sen t rc 1o s ~ avait lieu; () monn ai cs llc La C.E.I:. ct 1c ,lollnr'numomcnt ou 116mission aV:1it licu; la C.E.E. ne comptait encore que 6 memhres. Au cas oÙ de tels en~runts seraient émis aujourJ'~ui, les neuf monnaies la C.E.U. nc comptait cncorc quc 6 mcmhrcs. Au cas de lri C.E.E. devraient nornalement Gtre prises en consiA6ration. oü dc tels ernp run t s sc r a i cn t ömts auj cur d ' ~lui, Lcs neu f monna ics Je la C.E.E. dcvruicnt nornalcment Ctrc priscs cn consiAdration • 41

41 95 / 140 20/10/2014 C-l C-l

L'J:.C.U. fut utilisé quatre fois, et détail ':1r1I1S:1nt, par le nrésjJ

L'];.C.U.et laf C.r.C.A.,u t u t i Li sö pourqua t unr c totalf'o is , Jec t dGtail 165 millions anus an det , dollars.pn r 1e nrcsiJ Comme et la1eli C.[.C.A., h re cho ixpeur deun la totalr.lOnnaie Jecst 165 donnémil1ions au sousede dollars. ri pteur,Co~me tan t T'lour 1c 1leihr paiemente eh 0 i x dei des a intérêtsr.lO nna ie (111ele es t d0 nn remhoursef.lentc aus 0 U sc rir dut cu capital, r , t ;1n t 11 il0 U r

Je pa s'agissaiti crnc n t des d'uneintcrcts .formuleC!.ue coOteuse 1e r emhour pourscncn let d6hitellr,du c ap i t a L, quii l devait

s t a gassumer, is s a i t dilI uneplein, .fo rrau toutel e coü modification tcusc pa ur 1e (lu d tauxö h i t cu de r, change qu i do(I va'une I t monn;1i assumcr,?ide référence.plein, toute I\.cc lllodification titre, un empruntdu taux endc E.C.U.change constituait (1'11ncmonnni de sa de rGfcrencc.part un acteA dece foi titre, clansun laemprunt stahilitécn TI.C.U. des parités constitunit ?i l'intérieurde sa de partla unC.E.I!. acte de C'est [ai clans sans1a doutestnhilitc pourquoi dc?parites cette formule?i l'intcricur fut rapidementoe Ia C.E.I~.abandonnée C'est ; etsans aussi daute longtemps pourquoi quecctte seraforrnulc maintenufut lerapidcmcnt système des at.andonnücmonnaicsflottantcs, ; o t au s si Lcn il gt crnps n'y a quo pas se lieur a ma dei n t.cnu s'attendre1e sy st aömc de des nouvelll luonnaies.flottuntcs,émissions en E.C.U.i1 n'y a pas 1iou de sratt~nclrc n de nouvelll EmissionsParcn contre,E.C.U. les titres libellés en ~.C.U.,né30ri6s sur le Parnlarché contrc, secondaire, les titfes fontlihellcs largementcn priôe~.C.U.,n630~i6s : les courssur ontle d6ja marchecons sccondairc, idérabl~ment font devancélargement les événemcntsprine : les Iaonétairescours ont ;dej?i de ce fa it, cons lei dö gain rab lcmont de dlBnge dcvanc pourö I'es un evenemcn investisseu.rdésirant ts morie t aIrcs ;aujourd dc ce fa'hIdi t , entrer 1e galndans de le change marché pour est fortement un invcstisscu.r.oesirant limité. Clujol1rd'huj cntrer dans leLe marche Europeanest Compositefortcm~nt Unitlimit!. ou EURCO, également fondé sur les Lc9 monnaiesde European Composite la Communauté,Unit ou estcomposé EUReO, egalcmcnt d'un nombre fondG $ur fixe les d'unit~s 9 mannaiesde chacunedc la d'entreCammunaute, elles. est Lacompos6 valeur de d'un I'DUnCnnombrc estfixe calcul8ecl'unitc"> en de chacuncfonctiond'entrc des coursolles. effectifs La valeur du mar.ché, de l'EURCO et seest modifie ca1cu1~e naren consé- fonctionquent des d'uncour jours effectifs ~ l'autre.. du ma rc hö , et sc mod i f ie nar c on s ö>

~ucnt d'unEtant jour un cocktail.a I'autrede .. 9 monnaies, son orip;inalité, comme dans

Etantun cocktail~ un cocktail.de réside Jans 9 monna le ic dosage. s , s on o Dans r i gi na sa Li comnosition,t ö , commc d ans on a un cocktail~essayé de r6sidc tenir comptedans 1e dudosagc. poids resp~cti[ Dans sacomnositinn, des pays dans onl'économi( a essuyGeuropéenne de tcnir (commerce compte du extérieurpoids rcsrccti[ ct PNfi) destout pays en utlnmentant dons l'(conomi( quclque our opücpeunno la part (commcrcc des. mónnaies ex t ö ricu "fortes" r ct P7'!R) ent out vuee de n a renforccr ug mcntan t l'quc attrai Lquc t pe ude La lapa r formule.t de s nonna i c s "fortes" en vue dc renforcer l'attrait de In formule. 0 - Pondération du DM 29 1> pp 0.~20 II - Pontlcration du DMdu 29 " ~ II du Fr:de la E sterline1.0 ~15 0 ~ de ladeE lastcrlinelire ital.15 0 10 % 0 de Inùu lireflorin ital.néerl.10 % 11 1> du florindu FB neer1. 11 % 10 %. du FBde la couronne10 D.%. 3 % de In(lecouronnela E irland.D. 3 ~ 1 IJ<, du 11f. n. luxemh. 1 <;I 1 % dc In irland. <' q 100 (I du r. R. Iuxcmh. 1 % 100 t

42 42 96 / 140 20/10/2014 C-1 C-1 Cette dernière particularité a rendu l'ETIRCO difficilement ac- Cutteceptahle tlernierc politiquement particularitc par a lesrenJu autoritésl'EURCO officielles difficilcment rIes ac-!"laysdont cc pt abla 1e monnaie p oli,ti qucmc était nt jugéepa r Le faihle,5 au to rit etö s imposait0 fficie Llesdes c11anp;ements de 5 na ys don répétést.

La monnaiede la pondération,ö t ai t j ugö e Ea déroutantesi.b Le , ct Impo pour sai t lerlc marché,s chan gcmen chaquet s r6pet~s fois que les de laspéculateurs ponderation, modifiaient deroutantes leur rour attitude 1e marche, ql1an~ chu'1uC 11 lafois force quc ou los 0. la speculateursfaiblesselIlodifiaicnt des monnaies1eur dcattitude référence.crllan~ Ena outre,la force dans ou cette 5. la formule fai.b Lcles ssc conséquences des monna i e s dedc modifications rcf6rcnce. En de ou lat rc parité , dan s ~'une cette monnaie formu1c indi- les cons6qucnccsviduelle n'6taient dc modificntions pas éliminées. de· In pariLcste invcstisseurs~'unc monnaie des indi- pays doni viduelleles n'6tnicntmonnaies sont pas 61iminGcs.peu ou sous-représentêesLC5 invcstisscurs courent ~cs presque pays don inté~r:lt lcment le risque de révaluation de lcur propre monnaie. Lc s monnaie 5 son t peu OU s ou s= rcp r ö sc nt de s cou ren t p rc sque i ntc~r;l lCl1\ent leLes risque investisseUrs de rGvnluation importantsdu 1eur (institutionpels)propre monnaic. ont quelque peu Lc sboudG:i nvc s unt i sscur cocktail s importants de monnaie(insti quit leuru t i.onncLs était. ) ontimposéquc Lo uc pe u boud d alorsun cock qu'ilst a i 1 dc étaient mo nria i.een qui],leSUreleur dec tai réaliser,t· impoee en diversifiant leurs a lo r s placeQentsqu ' i1s etaicnt ~ leuren gré,'nc su unrc dc dosager6a1iser, Je leurscn d investissementsi.vcrsi f ian t 1curs r6pon- ~l .. ' 1 '1 .. .. P 1nccncnclantt s }a leur eur propregru, un jugement.(OSD.r,c ~!C. Deeu plus, rs a.nvc lesst rsscmcn clifficultGst s ropon- pos~es au dantmarch6 } leur propre secondaire jugcment ont également•. Da plus, constitué les Jiffieult6s un freinposGes à la g~nérali-RU Jrrarch~ sationsceondairc dc l'ETIRCOont 6ga1crncnt (sa valeur constitu6 varie chaqueun frci~ jour,a la sur g~nfrali-hase des su t i oncours de l'ElmCO pratiqués(sa 11 va la l cur Bourse va r i e de cha Luxcmhourg que j our , et sur la ha prévision se des d'évolu- cour stion prat i lIequö ccs tII teLa "valeur Bou rsc ahstraite" dc Luxcmhou'r parceg c t quela pcom!losirövi si on te, d'cvolu- néce s s it.e réflexion évicJelTincnt t io n dounecttc travail "vade lcur ahstrnitc".parcc quoplus c ompocOI!lpliolJr:qncs'il sit.c, n ö c c s si te s'agis- sajt d'une pr6vision sur la valeur future d'une seule monnaie). un t ravni l d e r ö f Lcx i on cvidcmncnt plus cOI!lplinn,: quc s 'il Si ag i s- sait d'unc pr6vision sur In v31cu~ future d'unc seule mnnnaie). Les investisseurs ont donc accllp.111i("('1"1".(> fnrm1l1p. :lVPof: rlp.<;

Lc ssentiments.inve st is sou rs ont partagés:done ac cue troisi l 1 i rr"rT.(' émissionsfnrmlll ont ~ n vuvo r; le(Tr.<; jour - dOli. s cnt i mcndeuxt s pour la paBanquert agö sUurop~cnnc : trois (~missions d'Investissementsont vu lc (D.n.I.)'j ou r - don- pour dcux JlOl1Tun montant1a Banque total Europ0cnncd de 110 millions1lnvcstissemcnts d'EURCO, ~quivalant(H.n.I.) - a 138ponr million un montantde dollars. total dc 110 oillions d'EURCO, ~quivalant a 138 million

'" dc dollars.Au-clel3 cles f{Yrmulcs dGjà appliqu~es dans des (>missions inter- -.

Au-rlcnationales,l ä dc 5 formul d'autrescs dGja propositi~nsa pp l i.quöc s d'unités d an s dc s de6mi comptes sions sont in tcr- dans • nati6nalcs,l'air, d'autrcsqui tententpropositions de pallierd'unit6s les inconvénients de campte sontcles syst~mesdans exis- l'air,tants.qui tcntent de pallier les inconvGnicnts ~cs syst~mC5 cxis- tants. Le. Professeur Triffin, dc l'Université Yale, a lancG l'idi"e Lc JeProfcsseur 1 'EUROPA, Triffin,qui comhineraitda l'lTnivcrsitc les avant,a:~esdeYalc, a lanc6 1 'IJ.C. l'idpe secon(1c for- Uc l' EUJaulelW P1\, et Cl11 Jei l'EùRC.O,co mhin c ra eni t évitant1t: s av an leurs t.a?C 5 i.nconvé1'1icntsd e l' lJ • C. 5eco :nd il c f la0 r- défini: mule ctcomme Je l'H0RCO,un cocktail cn Gvitantde monnaies,lcurs mais.avec\nconv~fiicntsune pondération : i1 la d~finilperma- comme nente.un cocktail Elle dcne monnaies,varierait rnais.HvcCpas chaquefois une ponderation qu'une seuleperma- monnaie nente.s 'apprécieraitElle ne varicraitou ~;CJéprécierai pas ehaqucfois t, nais qu'unc sa valeur seule monnaic courantc rcstc.- s'appr6cicraitrait 6quivnlenteDU Sc J6I1rGcicrait, ~ celle de ln naismonnaieS3 valeurdont le courante cours effectif restc~ ~c rait 6quivnlcntc ~ cellc Je In mannaie dont le COUTS cffectif ~c

43 43 97 / 140 20/10/2014 C-l p.larch6 serait resté stal)lc ou aurait 11011gé Ic twins.C-l Calculé de

r.ta r Cettec.hö s e J!lanièrc,r a i t TC 5 t6 l'EUR()I>.'\ s t ab lc maintiendrait, ou aur a i t houg ö parLe définition,rao i.n s , Ca l cu le l ö maXir.ll!'11dc

c c tdet cstahilité m.in i ö rc , l'EUROI'l\ vis-:l-visma desi.n t Le monnaies n d r a it , depa r la nefinition, COJ~ml1nautélc prisesrnax imu-n dans dc leurstahiliteensemhlc.vis-.1-vis des monnaies de In ConmunautG priscs dans leur ensemhle.L' adoption d' une uni té dc ch[1n!~e COTriJllunautai re paraît parti-

culièrementL'adoption d'une opportuneun i t e audc momentc hnnjtc oùc crnmun la Communauténu t a i r-c parait envisar.c na r d'émettr.t i « cu Idesie r cmc empruntsnt opportune internationaux,au momcn t notammentoü La Communaut6 pour recyclercnvi sar;c 1esd ' pétro- 6mc t t r- desdollars.ctupr un t s Oninternationaux,. aurai t le choixno t entreammcnt 17pou formulcsr recycler cUfff.rentesl c s pö t r o- qui do Llont a r s 6t6 , On analysGes, au r a i t 1c entrechoix autres,entre 17 dansEo rmu Ic l rapport e s (li ff0rentcsdu ~omit6qu i des ontOnze6t6 experts analys~cs, ;mprès entre

un i t ö Cettede conp idée tc qui est conscrverait notammcntavancéc.par unpollvoir t10nsieur tl'achat Jacquesconstant. Ribaud, quiCc t t propose,c idee c s sO,ust notammcntavancec le vocable cl' EUROSTABLE, pa r lion s Leu une r .Jac formule quo s Riboud, nouve lIe,

.' qu iconsistantpropose , sous en un 1e aggrég,at vocable des d I EUROf-TABLE, monnaies dc une laf Comrmnaut6etormu l c nouvc 11e, qui consistantposséderait en un laaggr6gnt propridt6 desde mannaiesmaintenir, Je ala traversConMunaut6 le temps,~t qui la

p osconstance s ö do r a i t In dupr pouvoirop r i ö t.ö d'achatde mai ntdes cn imonnaiesr , a travers de rêf6rence. le t ernp s , la Techni- constance<{ucment, du les pouvoir taux de d'achatconversion des monnaics des monnaiesde r6f6rcnce. eitro!16ennes techni-.cn q~cment,EUJWSTAnLESles tnux serade icntconversi6n calculé s des chaquemonnaics jour, coro~6enncsen de manière ;'l re specter

EUIWSTADLESles rapports . s e r a entre ient c eux a Lcu des Lö s taux chaquc de jchangcou r , dc de man cesi ö r mnrinaie5 c ;t TC spc natio- c t o r les. nales,rapports tels entre qu'ilscux r6sultentdes taux des dc change marchés.de ces1:n mêmemnnnaicsnatio-temps, on ferai .nales,en sortetels quequ'i1~ le mêmer6sultcntnomhre desd'EUROSTADLESmarch~5. RnpermettemSmctcrnrs, de seon procurerfcrai cn unsorte ."panier."quc Lc européen mörnc nomb constantrc d ' EUROSTADLES de biens .ctpc rmc dett services.e de se proeurer un ."panier"Cette idée cu ropöcri figure constant également (1e bienset aun";ilbredc desserviccs. propositi

unimportants. "pan ic r " da mat i ö re s pr cmi ö rc 5 ou dc p r odu i t 5 manu f a c t urf s importants. .... 111.- Conclusions -:. 111.- Conclusions Les çfforts des opérateurs et lles banquiers pour trouver des solutionsLcs c Lfo r pratiquest s des onö aux rn t cur prohlèmes s c t des posés ba nqu paric r s le pour retardt rcuvc d' intégratit~ r de s

s olmon6taire u t i on s pr a n'ontt ique 5 guèreaux pétér ob Lemcratifiés s po s ö par5 pa les r Lo marché. r ot ar d d'Le in (toUartegra t i r monödominet a I r c toujour$.n' ont gue parr e e lestG rati volumcsfies tra:tt6s pa.r le 5 tantmarc hö dans • Lc les(toll '~missionsar

dom i no t ouj our s i pa r los v o Lume s t r a a t ö s t an t da n s 1es ·~missions

,. ..

44 98 / 140 20/10/2014 C-l

int ern a t ion ale s :t Ion r, ter DJe que cl ans 1 cse r i~cl .i t s f j n anc ier 5 :1 l~lOycn terme, qui tendent aujourd'hui ?l en prendre C-lle relais.

.~6 a m!O ins, 1 c suc c ès;) Clr tic 1 cl el' lJ .C ., (le l' Eo C . 1J. e t d e i.n t.c l'T:lJRCOr n a t i.o na r.lérite l c s ;1 Lo J'être n g t c rruc retenu,quc d facea n s les au manquec r ö di.t s def i soutjenn an c t c r s officiel,J no yc gouvernementaln t c rmc , qu i t cnou dc cOlnmunautaire. n t aujourd'hui flL'approbation en p rcn d rc 10du rcsouverain La i s , a

fait,H~an]:\oins, défaut, Lc et succ leö supports p a r t i.c courageuxl de l'U.C., Je,Jeux

C.1:.C.1\. la B.LI., - nla pas su f f i j ns un c na t d t i.nco r t i t u.: clonc sact consécration par la C.E.E. elle-mSmeda Li~ tIne simple d6clara- monc tiont a i r;,;gran ~ cetd égarJi ssan t, est.:t insuffisantec r öcr l' adhtis i;on ildu est puh nécessaire l ic , qu'une formuleLn eondition pr6cisdde soitraussite aclopt6ed'unc parunit6 la Cornmunaut6 de compte tantcuropGennepour sesest done opérationssn cons6crationinternes par(buclgei, 1a C.E.E. agriculture elle-mame(FEC07!)) ~ llnc simplc~ue pourd~clara- ses tionrel~tions ~ cct Ggardfinancièresest insuEfisanteexternes ; (crnpruntil est n5cessaire communautaire, qu'uncpar formuleexemple). pr6cis6 C'estsoit laadopt~e Communautépar la seuleCornmunaut~ quj pellttant cristalliser,laPOUT ses opö rdGfinition at i.ons internesde l'unitG(budget, cle comptea g ri cu l etent ur c (FECml)) généraliser quc l'emploi.POUT se s relationsL'actuellefinancicrcsfaihlesse externesclu (c~pruntdollar, ou cornmunnutairc, son instahilitG, par et

c.) • I t Communau t ö i i cxcmpl'importancel C es Ju1a ])rohl~me duseule recyclagequ pellt des pétrodollarscri 5tall ser .ajoutent In dc dc en L' i., dGfinitionaux chancesl'unit6 de voir sed6gagercompte ct unegcncraliscr unité de comptecmp européenne. Lo

NoriL'actueile seulement,faihlcsse elle sedu suhstitueraitdollar, DU sona cet instnhilitG, 6talon-fant6me, ct ce que l'impol'tancctout le mondedu proh1eme souhaite,uu yrccyclagccompris lesdes américainsretrodollarseux-mêmes,ajoutcnt mais DUX ellechances t~anscenderaitdc voir sc J~gager~es mortnaies une unit~ ct~rop6ennesde compte existantes~ curopCenne. ces mon- ~on lIaissculemcnt,nationales'concurrenteselle sc substituerait qui,a parcet calcul6talon-fantßme~ou par faihlesse,ee que tout s'effacent1e monde souhaitc~lorsqu'ily estcornpris questionles denD~ricail1s leur faire cux-mGmes, jouer lemais r6le elled'instruments t~ansccnderait deles r6serve. morinaics c1:rop6cnnes cxistantcs~ ces monna i.s nationalesl~uant il ,-'concurrentcs1'opil~ion publique, qu i, pa'elle r calcul acçucilleraitDU pa r faihlcssc,mieux qu'aujoUl s'effaccntIHli une torsqu'il Europe clont est laquestion monnaiede sentit leurplus faire stnhle,jouer le doncr6le jmmunisc>c " d'instrumcntsen quelque de sorter6scrvc. contre l'inflation, cette mal,HIie angoissante qui~uant n'6pargncn l'ori~ion aucun~ pul)li~ue, monnaie. elle ac~ucjllcrait mieux qu'aujoul hu i un e Eur opc clont In mo nn a i.c se ra i t plus s tab lc , do n c immun i sö c en quclquc sorte eontrc l'inflation, ccttc mal<1dic nngoiss

45 99 / 140 20/10/2014 D

Document rédigé par I. FOIGHEL Document written by I. FOIGHEL Documentredige par I •. FOlGHEL

Document wri tten by I. FOlGHEL

1. The Institutional and Legal Problems in oonnection with an Erternal Borrowing and an Exchange Stabilization Fund for the Community 1. The Institutional and Legal Problems in oonneotion with an Erternal

Borrowing and an Exchange Stabilization Fund tor the ColllDll1J1i t;y

100 / 140 20/10/2014 Prof.Prof. I. F0IGHEL I. FCIGHEL . UEM-. UEM- 62 62 D-l D-l

The TheInstitutionnl Institutionalanrl and LennJ Le~alProblems Problems5n 5n c0nnecti~n rtt •• w cQnnecti~n

! ! ;;:...:.:...:::.:.~:;;.;..;--:;~::..=.;~=~-,,/wi th wian thE:xter an E:xcernaI na1 I3nr:·.::l1..,ri:3~)(';:'o\.dnGno and andan Sxc:hLlnoe an Sxr.hènqe." Sta'Ji Sta':>i'.1.i ;!,<,} Uj::-nizô Uj::'n

Fund forthethe Cornmurü Communi tv Funel for tv..•.. ~

I TheThe creation creation of an ofEC0110mic an Ecor1omicand and rJJonetaryUnion Honetary Uniona s a as par at par t

of brof inbr connectionin connection wi~h\rJi~h thethe EEC EECh~s· has'been been outlined outlineè in in

the theWcrner-rerort Werner-reportbaS(l~ ba~On'! theon thecu t look outlook possible possible at the at the

endend of the of the60es. 60es. The Thewerner-report Werner-report includes includesa design a design,

forfor the thedecision~maki1g decision-makiprocessJ 9 processmainly mainly based based on al1nlJal on annual

sur~eys,sur~eys, and and decisions decisions made madeby the by theCo~ncil, Council, thc theCommi~sion Commi~sion

andand the theCommittee Committee of Gbvernors of G6vernorsof the of theCentral Central Banks. Banks. The.'iferner-:-reportThejterner,;,.re.1)ortindicates indicatesnew institutionsnew insUtuUonsbut keeps but keeps

the thepower powerof thc of thedecision-mBking decision-maki.ng institutionsinstitutions - at -least at least as far as faraso the as themain main suggestions suggestions areare concerned-inside concerned-inside the thescope scope of the of theTreaty Treaty of Rome 6f Rome

On theOn theother otherside sidethe thesuggestions suggestions made made have have not notproven proven

veryvery effective, eff~ctive, and and the thepölitical political backing backingand and thereby thereby thGthe ~il1 will of the of theCouncil Council to make to make decis~ons decis10ns and and to implement to implem6nt thethe ideas ideas Qf the of theWerner-report Werner-report has hasbeen. been lacking. lacking.

/ / This Thishas has created created the wishthe wishalso alsofrom from a legal a legalpoint pointof vicw of view to tryto try to suggest to suggestnew newdesigns designs for for institutions institutions with with

powerpower different different of the·pow6r of the' pow6rvested vestedin the in theexisting existing organs organs therebythereby to try to try to re-vitalize to re-vitalize the thenation notion of strengthening of strengthening

thethe Luropean ~uropean cooperation cooperation 1n the in theeconomic economicand andmonetary monetary fleld.field. By considering By considering such such a project a projectit has it has to be to born be born in mind,in mind, however: however:

49 49 101 / 140 20/10/2014 D-l D-1

10 0 that the political climate in Europe does not seem 1 that the political ellmate in ~urope does notseem favourable to alterations in the Treaty of Rome, favourable to alterations in the Treaty of Rome.

20 that the political development in the member states 20 that the political development. in the member states in connection with the major economic problems facing inconnection with the major economic problems fa~ing these states today and in the foreseeable future these states today and in the foreseeable future makes it unlikely 'that the governments will be ready makes it unlikely·that the governments will be ready or able to accept decisions on majoi political issues or Bble to accept decisions on majoi political issues m~de by organs completely outside the ordinary national mbde by organs completely outside the ordinary national political establishments. Of course the political political establishments. Of course the political deVelopment !nthe international economic field also devclopment !nthe interhational economic field also act as a catalysator for the opposite approach i.e. a act as a catalysator for ~he opposite appr.oach i.c. a more. European. solution of the national ,economic an~ more Europcan solution of the nationaleconomic anu

. monetary problems. However it is at least doubtful mone Far y pr'ob lems, However i·t is at least doub t f ul whether the necessity of cooperation outweighs the whether the necessity of cooperation outweighs lhe political resistance against such cooperation. political resistance against such cooperation.

~he problem of Theovercomin~~ problem of the . political doubts and hindrances necessitates overcomi~g- the political doubts and hindrances necessitates in any c~se a clear definition not only of the goals or the in any c~se a clear d~finition not only of the goals or the objectives which should be achieved, but also a clear objectives which should be achieved, hut also a clear definition of the decision-making process which may be a definition of the decision-making pr6cess which may bG a condition for the achievements of the defined goals. condition for the achievements of the defined goals.

It may however be pertinent to make two observations: It may however be pertinenl to make bio observations:

. 1) While the description of the necessary institutions 1) \'IhiLe thc descr iption of thc necessary Lnstitutions and the formulation of the proccdures they should and the formulation of the proccdures they should follow is a legal task, it goes ".lithout sayinç; thaL follow isa 1egal task , i t goes wi thou t sayi ng tlB l the technical (legal) frame for Suropcan cooperation the technical (legal) frame for Suropcan cocpcration <;0 ")0

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might in a decisive way influence the outcome oE th2

might incooperation. a d cc Ls Lve way Itinfluence is pot only Lhe a ou questio~t corno of of th2 efficiency

coopcratian.or non-efficiency, It is not only it a is question mainly a of question cfficiency of the

or non-efficiency,substance ofit thei5 decisions.mainly a question This means of the that before

substancca leg<.l1 of thcframe decisions. can be suggest.ed, This meansthe that political before and

a legJleconomic frame can goal be suggested, should be well-defined the political and and agreed upon. econcmic goal should b~ well-defined and agreed uran.

2) Even if th~ overriding political goal is well-defined,

2) Even ifthe th~ implementationaverriding political of such goal a goali5 well-defined, leaves a number of

the implementationoptions as toof such a goal leaves a number of options as to

(A) the subject.-matter £0= the concrete decisions

(A) the subjcct-matter fo: the concrete decisions

(B) the orClan which should make the decision ~ (8) thc oroan.. which should make the decision

decision-makingvested in process the organ. at largc - should be vested in thc organ •

. Even if it is possible from an analytic point of view to . Even 18 possihle from an analytlc point of view ifmake it a distinction between (A) subject-matter, ta(B) organs

make a distinctionand (C) competence, between (A) theresubject-matter, is a close and(8) natural organs inter-

and (e)relationcompetence, among thcre (A), 1s (B) a close and (C). and natural If it is inter- decided to

relation createamong a(A), Balance-of-Payment (6) and (C). If Fund it 1s or decided an European to Energy

create aBoard Balance-of-Payment or" a new monetary Fund sys or tem, an European a -EUROPA, Energy the choice in

Board Or"thea new institutionalmone-t ar y sys andtem legal , a ~EUROPA, respectthe ischo ofi coursece in limited.

the institutionalOn the other and hand legal if respect a European 1s of EMU course has to limited. respect the

On the otherwidest hand self-dete~minètion if a European EMU of"all has to the respcct member ~he states, th~n sel"f-deterrnin,'ition ~3.11 t t widest the competence of theof' organsthe has mcmbcr to be s e rathere s , th·?n modest and a the competcncc of the organs has to be rather modest and &

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num:-J.:"r of ~;;uhjcct:-r;hLt c;:-~'; l~; ;)".,' this pr-ovi~;;') exclLl\,'".,J

from re0ulation. f r orn re ju l c.t ion.

../.

In the rcpor t of the S bldy G ':.'oupi t is proposed tha t an "'- In the rcpor t of t.hcS t'.ldy G ~"OUP i t 1. s propo sed thi:l t an f:xternal 3or.::-ov:ingand Ci:! SxchanCjè' Stabi15.:<~i.1lion Fund r~x ter [\21 Bor. '::(',\:li n9 and an Exchang c' Si:ab LJ:_ ~~i.:t ion Pund for the Cornrnunil':/ should be established. It is fur.thc-r for the Cornmunily should be established. It ts further suggested that the operations of th6 Fund should b~ suggested that thc operations of th~ Pund should be carried lUt by the European N0nctary Coopc!'ê:d::.:Lon Fund, carrted out by the European Monctary Coopcration Fund, vJhic:1 has existed for the past two year~:;.The ::!\îCF, l1ew- wh i.chhas ex i st.edfor t ho past lwo year~" T;-1e ::r-1CF, hCliJ- ever, has had no competence ta make decisions on any ever , has had no compe t errce t o mak e deci s Lons on eny substantial operational functions. substantial operational functions.

In conducting the operations ~f the proposed Exchange In conducting t he opcr at i ons 'Jf the pr opo sed Exchange Stabilization Fund the following suggestions might he stabilization Fund the following suggestionsmight be appropriate: appropriate:

1) An independent agency should be set up, consisting 1) An independent agency should be set up, consisting of experts representing the central banks and/or of experts representing the central banks and/or tha member state~ governments. The agency should for t he, member stat es governmen ts. The aqcn cy shou Ld for obvious reasons be small and should be able to meet obvious reasons be small and should be able to meet regularly. It could be a new agency or a group of regularly. It could be a new agency or a group of members of the Monetary Committee or the Committee members of the Monc~ary Committee or the Committce of the Governors of Central Banks. of the Governors of Central Banks. "!

2) The agency should hav'c competence to make bindtng 2) The agency should ha~e competence to make binding decisions. The decision should be taken with decisions. The decision should be laken with majority vote. majority vote.

3) A statute for the agency.should be adopted, desc~ibing 3) Astatute for the agcncy.sh0uld be adopted, desc~lbi~J

"''' 104 / 140 20/10/2014 D-l D-l

the form01 and su~stanti~l cc~petcnce.

4) As the4) de~isions As the de~isions taken by t~kenthe agency by the are agency of great are of great importance to the member states, the Council of importunce to the member states, thc Council of -t Minist~rsMinisters should give shouldconcrete give concreteand direct and instructions direct instructions.

to the agcncy.to the agency.These instructions These instructions should be should adopted be adopted

by thc Councilby the in Council accordance in accordance·~vith the withordinary the ordinaryrules rules

of thc Treatyof the as Treaty understood as understood and applied andby appliedthe by the

C:ouncil. Counci 1.

5) Thc agency5) The should agency normal1y should onlynormally be entitled only be entitledtoaet to act

within thewithin scope the of scopethc instructions of the instructions fram thc fromCoureil. the Coureil.

Lf, '.ho\'Jever',If,'howeVe~,the Couneil the daes Council not doesadop t nota0Y adoptconcr anye t.e concrete . . - instructions,instructions, thc agency the can agency make canits makedeci$ions its decißions ac- ac-

cording tocording the s t toet.u thei.o s statutesfor the agency for thedescrlbing agency describingin in

general tcrrnsgeneral~rmst he subs tan thet i substantialal compe tenc competencee of the agcncy. of the agency.

By this systemBy this of system combined of combinedand shared and competence shared competence between between the agencythe and agency thc Cou~eil, and the Courl~il,it 1s secured it is that secured thc Councl1that the Council of Ministersof Ministershas the decisive has the decisiveinfluence influenceon the concrcte on the concrete dccisionsdecisions of the 8gcncy of theif agency the Council if the so Council wishes.so. Onwishes. On the o±h~tthe hand, othót if hand, the Council if the is Councilnot ready is not to readyact or to1s act or is not ablenot La agree, able toit agree,is secured it is that securedthc agency that the can agency mako can make thc necessarythe necessary decisions. decisions.

IST FOIGHSLIST FOIGHSL

Pr ofes s r: r,Pro d fesr . ::.,J'u,-0 r, . dr. Ju i- . Uni v c : si tyUni o vc':sif C()J)("~'\:tyICJ of'j':' COP(~'\)r· 10':;"1.

t·jarch C,Hareh 1975 G, 1975 53 53 105 / 140 20/10/2014 E

Documents rédigés par F. FORTE

DocumentsDocuments rediges par writtenF. FORTE by F. FORTE

Documents written by F. FQRTE

1. A Fiscal Framework for European Union

1. A Fiscal2. FrameworkEnergy scenario for European and European Union Energy Institutions

2. Energy scenario and ~~ropean Energy Institutions

106 / 140 20/10/2014 um-10 Et-l UEM-IO :&-1

A FISCAL FRA1Œ.'\WRK FOR EtJROPEA.!'f UNION ~ ,~,-~. <-. A FISCAL FfuU.~~ORK Fon EUROP~~ U1lION by Francesco Forte by Francesco Forte

"- ~ . 1. Considering the matter from a purely theoretica.l point of'view, the most • 1. Consideringobvious the matter public froma finance purely item theoretical for a European point Union of'view,(EU) is the public most expenditure obvious pub1icon defence finanee or militaryitem for a expenditure Europ~an Union and policy(EU) is related public thereto. expenditure Military on defeneeexpenditure or militar,y is expenditure a "collective and good" policy whose related benefits thereto. (if Military any) accrue to the / oxpend ituregenerality is a "collective of individuals goodH whose withoutbenef'Lt a plausiblea (if any) wayacorue of measuring to the the amount generalityobtained of individuals by a single witho~t person a plausible or business way entity, of measuxing and whose the amounteffects arise obtained byina placessingle distant person from or business those where entity, the andservices whose are effects supplied. arise Thus one in placescannot distantargue from about those the where correspondence the services between are supplied. amount Thuspaid oneand benefits cannot argueenjoyed about by the a given correspondenee area (as so between often amountoucurs paidwith andthe benefitsEEC, a.gricultural pro- enjoyed bygramme) a given nor area can(as oneso argue often aboutaUGurstV,E;wLth ':ö.irness the EEC, ofagricultural the regional pro- distribùtion gramme) norof the can services one argue (as about occurstc,G with!:'d.irnessofthe aid to underdeveloped regional distribution regions). Military of the service~expenditv8 (as ooeurs implying with public aid to order underdeveloped is conditional regions). to all Military other activities: expendity thereforee implying it public is appropriate order is conditional that it be toundertaken all other by activities: the top tier of thereforeadminist~ation, it is appropriate which that establishes it be undert~en the frameworkby the fortop thetier lower of tiers and for administ~ation,any other which power, establishes public or the private.framework Infor fairness, the lower military tiers expenditure and for is any otheralso power,public one of the or most private. controversialIn fairness, kinds military of public expenditure goods: somei6 may consider also one ofas thebeneficial most controversial particular ùnits kinds of of service public goods:which others some may consider consider most as beneficialdamaging. particular So that, units even of if, seryice technically which others speaking, consider on the most supply side this damaging.could So that, be considered even if, technically a good with speaking, a very largeon the area Bupply of diffusion, side this or the most eould be consideredcollective a good good of with all, a on very the large demand area side of one diffuSion, requires or rather thc most homogeneous collectivegoodsocial ofgroups all, to onmake the demandthis supply side oneacceptable. requires We rather may argue homogeneous that conflicts 80cia1 groupeof intereststo make this run across supply the acceptablea countries We rather may argue than thatbetween confliets t4em. But it of interestsshould run be aeross recognized the countries that to ratherßurrender than autonomy between in them. this But area it is a very should be delicaterecognized thing that i~ to whIch surrender national autonomy identity in ihismay be area very i8 important, a very to repre- delicate thingsent homogeneity. i~ wh±ch national But if identity we assume may thatbe Europever,y irnportant,~~ to to be united,repre- we must sent homogeneity.also assume But a if ratherwe assume high that degree Europe of homogeneitywan~ to be from united, the point we must of view of a.lso a.ssumemilitarya. ratheI' public high goods degree (or ofev~ls). homogeneityIt should from thebe added point that of view military of expen- military publicdituregoods implies (or powerev:i.ls). for theIt shou'Ld supplierbeadded more than that any military other publicexpen- expenditure: diture impliesolearlyit power would for the enhance aupplier the morepower than of the anyEuropean other puolicUnion expenditure:(EU) more than any clear~ ,itotherwould publicenhance finance the power activity. of the European Union (EU) more than a.ny other public finance activity.

57 57

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Procurement for it Viould allow European industrial and technological Procurement for it vrould allow European industrial and technological cooperation to develop. cooperation to develop. But in proceeding from theory to practice in this case there are several But in proceeding from theory to practice in this oase thera are several obstacles, both historical and current. I do not need to list them here. obstacles, both historical and current. I do not need to list thern here. I only want to stress that if military expen~iture became European, a r only want to stress that if milHary expendä tur-e beeame European, a solid~foundation fo~ European public finance would be built, and the solid~foundation fo~ European public finanee would be built, and the remaining issues would become much easier. remaining ißsues would become much easler. 2. Assurninf,' that this cannot be doru, we roust adjust our reasoning to a second- 2. AS6U1ning that this oannot be don 1, we must adjust our reasoning to a aecond-. best world, where EU public finénce must rely on less cohesive matters. best ,.orld, where EU public f'Lnz nce must rely on less cohesive matters. In my opinion, there are, however, areas where it can find important elements In my opinion, thereare, however, aroas where it cau find important elements of cohesion: i.e. capital movements, investment, supply of labour. Taese of cohesion: i.a. capital movements, investment, supply of labour. Taese lead us to consider four topics: lead UB to consider four topics: a) jurisdiction of the E7J in matters of profits taxation and perhaps of a) jurisdiction of the ~J in matters of profits taxation and perhaps of taxation of personal income derived from corporations; taxation of personal income derived from corporations; b) fiscal benefits in less developed regions of the EU and ~axation of b) fiscal benefita in less developed regions ofthe EU and ~axation of investments in congested industrial areas of it; investments in congested industrial areas of it; c) public expenditure on unemployment and related contributions by c) public expenditure on unemployment and rolated contributions by the EU; the EU; d) direct investment by the EU of funds related to,social insurance where , d) direct investment b,y the EU/ of funds related to.social insurance where reserves are required; such as industrial injury insurance and additional reserves ar-e required·~-such as industrial injury insurance and additional payments (perhaps of a voluntary kind) for old age and sickness insurance. payments (perhaps of a voluntary kind) for old age and sickness insurance • . 3. If jurisdiction is given to the EU in the field of capital investment, it . 3. If jurisdiction is given to tae EU in the field of capital investment, it seems logical that the entire corporation income tax should become a 8eem8 logical that the entire corpöration income tax should become a European tax, administered by EU and used for its expenditure. This could European tax, administered by EU and used for its expenditure. This could be the first "European Tax". Its revenue ianow about 3 % of GNP and this be t he firat "European Tax". Ha revenue i8 now about 3 % of GNP and this could also be the size of the tax levied by the EU. could also be thc size of the tax levied by the EU. It is true that corporations are a phenomenqn more relevant in certain It is true that corporations are a phenomenqn more relevant in certain nations and less in others. But in shaping the new European tax one may nations and less in others. But in shaping thc new European tax one may take account of this1 ai-least to some extent, in defining the taxable take accaunt of thi8y ai-least to some extent, in defining the taxablc subjects which do not need to be "corporations" in the narrow sense of the 6ubjeets which da not need to be "corpor-atfons" in the narrow sense of the word. Needless to say, rates should be uniform in the various areas of word. Needless to say, rates should be uniform in the various areas of the Union (except as indicated later under 4.). Uniformity of rules the Union (except aa indicated later under 4.). Uniformity of rules relating to the concept of income and to its assessment for this tax will relating to the concept of income and to ita asseasment for this tax will

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ha.ve i,'ortar,i; effects on accounting. LaHS regulating corporations other have i; :'ortar, i; effect<, on account ing, Lawa regulating corpor-a.t ions o'the.r than fi;~cal law could also be mO~:"3eas;,ly unified; and mobility of corpo- than fi:;cal 1.).\.,coul:l also be mO':"3 eaaiIy unifiedj and mObility of corporations from one section of EuroI e io a.nother enhanced. The net'/' European r-at i.ons from one s ec t ion of Euro) 9 to a.nother enhanced , The neli European moneta.ryunit coulè. be ('m~107cd:l ',~r:.g thi-s tax. Inspectors of the EU monet ar'y run i t cou Ld be r:r:)~107Cd. ~l ··.1:.gthÜ'; t ax, Inspectol's of the EU ~~1()'1:,~~ r;h8C-~ '~h8,.E':I':S ,:~C'" "J', :" ,,~;,'.r ,~:~OL}' 2:53uring unifor\<. ".1{ of criteria ~~:1()'1>~ "h"~(:-~'~h8.. ...C'-;1·:'8':'1(; ..< I':'. ;..~!.. :r ·e o.i, assur-mg unaf'orv. ".1 of cr i.t er-i.a a:'i", r" -c. -., . - .. "~L u~'; 'H' enti"'; miltter of internat' ODal aspects of ~r; enti~~ matter of internat~onal asrects cf jv, ,',,;d',.; , ">.'" 1 1 .H wi-;;:" oJ th,~ EU vis-à-vis "dOID8Stic" (EU) ."d wi-t:·" bJ thc~ EU vis-a.-vis "domoa t i c" (EU) y,,"'," ";',,, an,';. fv:.'ei:~n ("on-lW) corporations ïi:!:~h ')''',' '.. "'.'1. ~.~:t ' ".I)i l."~~el t'~LCrn8 ·h~J..-;;ll . " [ c.: ... an« ~,~-n ',,),otl-blJ corpora ~ , : "~lTi t,).r;',c"

j .:'d L~~;e ~Ü :i;tress that; ',;,:;se P'ol-' a;' inL l'.vie' EU jurisdictionover ! . t,rea-tlneT),!; of divià'3li;).3 rar tax purpos(,s: o'i'rJ'iowÜy since this matter .~,," tr8a-GIJen;; of divid'31i"':':; 1';.:1't;-'.x pur-poses e obvi cue Ly since this matter : ';ping')f.j on the basis fJf p8rsoYl;:Ü income tax, D diviJing line must be found

'-:pingr;" on vshe bas i s Gf p~"!r.so'v'.1äncome taxf i. diviJing line must be f'ound t:etwoen the tax yield on dividends attributable to national governments h::t,,"etm the t ax yield on div i.dends attributab1ü to national governments ((oven if collected from the corporations) and the yield attributable to (Gven if co11ected from the corporations) andthe yield attributable to td.x,,;;tion of corpol'aLiont; i.e. to the EU. But in principle it is not diffi- t.,~xo;.c~ionof corpcr-at.Lons i.8. to the EU. :But in principle it is not diffi- ClÜt tCi find a. di'\;)_din{, line: that part of the tax on dividends cóllected ettH t;:; find a di\;üL.n~~Une: that par-t of the tax On dividends cöllected :('r,~,;, ('orporations \-;111.ch i::;, ceint valent to tLa. ~ paidby undistri 1mted profits rr ..., corporat i.ons ;.;luch i3 €fi.n.iva1ent to ti.a , paid by undistrihi~t.ed profits 8I"1ould be considered ,j,S ifcorpora~:inn !:a,x", and the witholding 011 dividends ahou l d be cons Lder ed rJ,.S Ilcorporatinn ·!:;J.,x't,and the wi tho1ding on dividends 0::weeding that rate should ho cc;',sidGred as "personal income taxation". 0xceeding that rate shou.Ld 00 cC;:GidGred as "personal income taxation'l. What is important here is that a unified regime should be adopted, whereby What i8 important hera is that a unified regime shou1d bc adopted, whereby the tax treatment of all Europee.n rE'; idents in receipt of diviriends \-1ould the t ax treatment of' a.lL Eur-opean Te' j derrt s in receipt of divir1ends v/ould b~ identical 'lIhUe non-residents (of Eu) would have to undergo another hB identica1 \vhile non-resiOents (of tu) would have to undergo a.nother treatment (mOdifiable throurr,h inter));\tion tax agreements). treatment (modifiable throu!;h internat ion tax agreements).

4. The whole di8cnssion on regiona.l rdioies, at the EU level, so far has 4~ The whole discnssion on regional f-"licies, at the EU level, so fa.r has centr8d on the amounts ,if 00ntri b1J.t ions to be paid and of benefits to be centred on the arnourrt c ,)f corrb r Lbut ions to be paid a.nd of benefi ts to be received by thevar:i.O\1C: countries: i.e. h3.s been a. discussion on publie received by the 'variOtl'" courrt r-Les s i.e. has been a. discussion on public finance as, a Heapon for income (or wealth) redistribution. As' already finance aa a ","capan f'o'r Lncome (01.' wcalth) redistribution. As al ready pointed out by Professor Gierscl1 in his report on Monetary Unions, there pointed out by Professor GierSCA)in his report on Monetary Unior.s, thera is another approach, \'/hich has to do with public finance as a weapon to is anot her- approaoh , whi ch has to do wi th public finance as a weapon to I!!0mote efficiency, i.e. â bett~r allocation of resources among areas, 1,0mote efficiency, i.e. a bett~r allocation of resources among areas, correctinG market failures as to externalities. correotin(i market f'ai Lur-as as t o oxtcrnali tiea.

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Cost of invcstment in congeGted ~reas must be increased to Cosl of invcotment in congeöted ~reas must be increased to take;;. -count of thc; "social C:lsts" of these investments in terms take ••.count of thG "ao ci s.I c :;stsll of these investments in t erms of congQstion, while invebtme Its j~ less developed regions mus~ be cf congostion, while inve~trne lta i~ less developed regions mus~ be encouraged by t.aking $J.ccount )f their flsocial returns" in terms of encouraged by t ak i.ngj accourrt. )f their tlsocial returns" in terms of posi t ive exterr,a.liI. ties. -Here there is an area for "fiscal juris- positive ax t ar-r.a Lit Les ,-Rere thera is an area for llfiscal juris- / diction"of the EU bot.h~'Wil:;<, . i.e. for fiscal incentives and di ct i on " of the EU bo t.h'iJiJY,· ; i.e. for fiscal incentives an d fiscsl disincentives. ArId t ere is also an area for direct admini- ri s.c al di si.ncent iv ee, ,:lild. t ere is also an area for direct admini- ,3~"o:11.onby the êW. FiscaJ jurisdiction without direct admini- .: ~ "[J. f:i.on by t he ~W. Fi6caJ jurisdiction wi thout di r-e ct admini- ~L)-"tion may have superficial results and cause tension between ~~),-tion may have superficial results and cause tension between the rEU authorities and national authorities who have to follow tl1e I"EUnuthorities and national authorities who have to folIo'" tje rules set by thi former. So that, as far as possible, it :~e rules set by th;-former. So that, as far aa possible, it ~ppears wise to concentrate the regulatory power and the taxation/ ~ppears wiBe to concentrate the regulatory power and the tax~tion/ public expenditure powers relating to it in the same hands. The publie expeuditure powcrs relating to it in the 6ame handa. The EU may discourage investment in congested areas through a licence EU may discouraße investment in congested areas through a licence tax (or property tax) levied on plant-on:plant and other tax (ar property tax) levied on plant-on:plant and other in~tallation6 set up thereby business enterprises. iw-;t€l_llationsset up there by buad.ne se enterpriscs. I / Whether this should be a franchisei tax or a property tax is mo- ••••')11~ther this shoul ci.b e a franchise tax or a property tax is mo- stJy a matter of terminology, sincé in both 6ases reference should stJy a matter of terminology, sind~ in both 6ases reference should be made to the physical impact of the real investment, graduating be made to the physical impact of the real investment, graduating the tax according to the size an6. type of installat.l..ollt,..rough thc tax according to the e i.z e ari o type of illstallat.LOH t<-.rough general predetermined rules. But obviosly here terminology has general predetermincd rules. But obviosly here terroinology haB also institutional implications I since matters like property also institutional implicationsl since matters like property taxation might be thought to ~elong to other levels of government. taxation might be thought to oclong to other levels of government. What is important, ~n the case of a franchise, is that it should

What i6 importantt ~n the cas~ of a franchiset i6 that it should be a tax i.e. a price for 60cia1 costs of congestion and not a be a. tax i.e. a pric8 for .soeiel costs of congestion and not a "Yè5 or no" authorit2, which would app.ear to be against the ":res or nö" authoIit~ 1 which ..•.ould appear to be a.gainst the philosophy of the Rome treaty and too much of an interference philo60phy of the Rorne treaty and too much of an interference by the superior äuthority in local activities. Corporation income by the superior ~uthority in local activities. Corporation income tax rates could be reduced by the EU in respect of investments tax rates could be redu~ed by the EU in respect of investments in und~rdeveloped regions. In addition, it could pay subsidies

in und~rdeveloped region6~-In additiont it could pay subsidies administered directly by it, to projects which have its approval: administered directly by it, to projects which have its approval: this would not wipe out the power of national governments to add this ~ould not wipe out the power cf national governments to add other incentiv~s of their own, but these obviously should follow other incentiv~B of their cwn, but these obviously should follow certain agreed rults. certain agreed rul~6.

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5. Social security contributions in principle should be entirely harmonized 5. Socialin ßecurity the E~C contributiQns area, not to distortin principle the cost should of belabour entirely within harmonized it. This in the harmonization,E~C area, not to in distortmy opinion,the cast is more of labourimportant within than it. further This value-added harmonization,tax harmonization, in ~ opinion, because i8 more one may important normally than assume further that value-added value-added tax tax harmonizatioD,is mostly shifted bocause forward one may in normallyprices to assume final ~onsumersthat value-added and -unlike tax payroll is mostlytaxe~- shifted does forwardnot interfere in prices with to costs final in Consumers the various and regions -unlike and payroll sectors taxe~-of does activity. not interfere Some of with the costssocial in security the various benefits regions however and sectorsenter into real of activity.waf,cs and Some may of affect the 30cial (in a B~curity downwdrd benefits direction) however the price enter of into labour. real waces and may affect (in a downwdrd direction) the price of labour • '.tÜ, therefore inappropriate te try to harmonize sOGial security contri- .t i? tilereforel'utions without inappropriate trying to tc harmonize try to harmonize also an soqial important security area of contri- social htt ionssecuritywithout benefits. trying to Inharmom.ae the limitingalso an case,important one might area think of social that the entire s scui-a tymatter benefits. could beIn thegiven limit to theing EU,case astone regards might both think jurisdiction that the entire and direct mat~eradministration: could be given tobut the this,EU, whileas regards it may both be a jurisdiction terminal objective, and direct appears administration:too ambitious but this,a plan while as a itstarting may be point. a terminal Differences objective, in national appears systems too ambitioushere are a very plan broadas a startingat present, point. particularly Differences for in health national benefits, systems old age here areschemes very broadand family at present, allowa,.r,GÉ~s.What particularly is roreven health more important benefits, is old that age these schemesdifferencesand family reflect allowat.,;€s. different What i8 socio-economieeven more important conditions is thatand different these differenceshistorical reflect trends different in the Bocio-economic labour movements. conditions The areasand leftdifferent with which to historicalbegin trends to build in thea European labour movements.social security The area.s system, 1eft therefore, with which are to unfortu- begin tonately builda marginal European with social respect security to the massivesystem, therefore,and growing are importance unfortu- of this natelyphenomenon. marginal with However respect they to are the not massiv~ trivial. and Agrowing first area.irnportance where unificationof thie phenomenon.appears However appropriate they are is notthat trivial. of unemploymentA first areacharges where and unification benefits: clearly appearswith appropriate labour mobility i8 that within of unemployment the EU and charges with the and growing benefits: interdependence clearly with labourof the mobility economies within of the the ESC,EU unemploymentand with the becomesgrowing ainterdependence European issue, both of the~s econornies a str~ctural of the and~;c, technologicalunemployment phenomenon becomee a and European as a business issue, both fluctuations 3S a. str~ctura1~h8norn('Ïlon, anaand technoloGical is more and phenomenonmore related and to as migration a business flows fluctuations of rnanpovler.

phenomcnonj\ûtcs , andof payrolli s more taxationand more for re1ated unemployment to migration social flows insurance of manpower-, are around 2 % j{~tes ofY-lith payrollthe exception taxation of for France unemployment (less than social0,5%) insuranceand the areNetherlands around 2 (where% yJith theit exccpraJ1gest i on from of 1,2France up to (Less8%).than Pa.yments0.5'10) asandasha.rethe Netherlands of GNP are (where rather uniform i t r-angosand representf'r om 1,2 up a to low8;:'). percentagePayments withas a the'sha.reof exceptionGNP ofare Belgium rather and uniform the Nether- and representlands, where a low they percentage are more with important. the exception Systems of are Belgium very anddifferent the Nether- from country lands,to where country,but they are a more general important. European Systems system are could very be different Bet up, allowing from country for to country,but a general European system could be Bet up, allowing for

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national or local supplements to it. In addition to contributions national or 10cal supplements to it. In addition to contributions based on payrolls, money from the European Social Fund could be bnsed on payrolls, money from the European Soeial Fund eould be used to expand this policy which, in fact, would absorb some of- u~ed to expand this policy which, in fact, would absorb BOme of' the functions presently performed by that Fund, broadening and the functions presently performed by that Fund, broadening and making more systematic the entire area of action and relating it making more systematic the entire area of action and relating it to the policy for underdeveloped regions and for labour mobility. to the policy for underdeveloped regions and for labour mobility.

6. The reasons for unificatio~ at the European level of industrial 6. The reaGons for unification at the European level of industrial injury social insurance are very different from those relating injury 60eisl insurance are very different from those reiating to unemployment soci~l insurance and policies. They have to do to unemployment 50ciBI inourance and policiee. They have to do with the fact that here redistributional elements and sociological with the fact that here redistributional elements and sociological factors have minor relevance, while there are reserves to be factars have minor relevance, while there are reserves to be invested, which may represent an interesting tool of European invested, which may represent an interesting tool of European public finance and monetary action. Payroll contributions schemes public finunce and manetary action. Payroll contributions schemes here differ markedly: sometimes being uniform, sometimes differing here differ markedly: sometimes being uniform, sometimes differing according to the risks involved. But a unification of schemes does according to the risks involved. But a unification of schemes does not appear too difficult: after all, where risks appear objectively not appear too difficult: after all, where risks appear objectively more uniform a differentiation according to the degree of risk, more uniform a differentiation according to the degree of risk. does not change the distribution of the b~rden substantially. dDes not change the distribution of the hurden sUbstantially. What is important is that reserves could be invested in "Europa" and, What i6 important i6 that reserve-s could be invested in "Europa" and, in any event, would increase the financial powers of the EU. in any event, would increase the financial powers of the EU. Another area of social insurance where unification may be deemed Another area of social insurance where unification may be deemed appropriate in connection with reserves policies is that of appropriate in connection with reserves policies i6 that of supplementary pensions schemes for old age and other causes of supplementary pensions schemas for old age and other causeS of retirement from activity. retirement from activity. Supplementary schemes but not the basic ones, for two reasons:

Supplementary schemes but not the basic oneSt for two reasons: first of all because the basic schemes do not involve, in most first of all because the basic schemes do not involve, in most cases, reserves; and secondly because they are too different from enses, reserves; and secondly becauae they are too different from country to country (and from one category to another) and their country to eountry (and from one category to another) and their unification would imply an anormous amount of redistribution. unification would imply an anormous amount of redistribution. Obviously supplementary regimes exist already in the various Obviously Bupplementary regimes exist alrendy in the various countries, but they nead not be abolished. They might be partially countries, but they need not be abolished. They might be partially merged in the unified European system; And, very important to stiumu- merged in the unified European 6ystem~ And, very important to stiumu- late this development, benefits could be paid in European currency. late thiB development, benefits could be paid in European currency.

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E-l

7. I would consider that the minimum quantitative basis for European public finance should be 5% of GNP in direct Gources,of: revenue 7. 1 would consider that the minimum quantitative basis for European levied and adminis~ered by the EU. Corporation taxation, licences, public finance should be 5% of GNP in direct Bources,of revenue social security payroll rates for industrial injuries and unemploy- levied and adminis~ered by the EU. Corporation taxation, licences, ment plus the exclusive right of Europa- issue may give a yield soeia1 security payroll rates for industrial injuries and unemploy- reaching this lJvel, together with external custom duties.'Social ment plus the exclusive right of Europa' issue may give a yield security payments for supplementary pensions and the revenues reaching this l#vel, togetber with external custorn duties.'Social derived from reserves related to them, plus revenues from other security payments for supplementary pensions and the revenues social insurance reserves (industrial injury) may help to maintain derived from reserVes related to them, plus revenues trom ether this percentage over time, compensating for falling receipts from soeial insuranee reserves (industrial injury) may help to maintain C\,Jstom duties. this percentage over time. compensating for falling receipts from custornTo duties. these "direct" sources of revenues, additional sources should be added in the form ofa percentage of the~ld of the value-added To these "direct" sources of revenues, additional 60urces should tax and, perhaps, direct contributions trom the member countries. be added in tbc form ofa percentage of the~ld of the value-added Another area of expansion ot European public finance in future should tax andt perhaps. direot contributions from the member countries. be found in social security :finance, making it increasingly European. Another area of expansion of European pUblic finance in future ahould

be8. found Furthermorein 800ia1 its.ecuri shouldty be.(inance, emphasizedmaking thati t "jurisdiction"increaaingly European. in given tields of taxation Ce.g. international agreements and the taxable 8. Furthermore it should be emphasized that "jurisdiction" in given basis of the main levies, such as those on business enterprises) fields of taxation (e.g. international agreements and the taxable and of public expenditure criteria, may be more important than basis of the wain leviea, such aa these on business enterpriees) specific administration of given taxes and expenditures. At present and of publie expenditure criteria, may be more impertant than the EEC operates in these areas through guidelines and suggestions. specific administration ef given taxes and expenditures. At present In some areas, instead, it should have direct legislative powers; the EEC operates in these areaa through guidelines and euggeation5. it should also have a general power to represent the EEC countries In same areast instead, it should have direct legislative powere; at the international level (not only custom unions, but also it should also have a general power to represent the EEe countries international tax agreements). This obviously impl'ies a true at the international level (not only custom unions, but also European democFatic legislative body, to which these powers should international tax agreements). This obviously impl'ies a true be given. European demo~Fatie legislative bOdy, to which these powere should be given.

113 / 140 20/10/2014 E-l Frl Industrial In,jur.v:.Dayments as % of Soc. Sec. Payments Industrial In,jury_Oayments as % of Soc.Sec.payments 1970 1965

Belgiwn 1970 4,6 1965 3,2 Be1giwn..France 4,6 4,6 3,2 5,1 FranceGermany 4,6 3,5 5,1 4,6 GerrnanyItal~ 3,5 3,5 4,6 3,1 Ita1;'[Luxembourg 3,5 1,0 3,1 1,6 LuxembourgNetherlands 7,0 7,6 1,6 Netherlands 1,6 Unemployment Payments as % of Soc.See.Payments Unemployment Paymente as % of Soc.Sec.Payments Belgium 4,6 4,5 BelgiumFrance 4,6 1,0 4,5 0,7 FranceGermany 1,0 1,3 0,7 1,0 GermanyItaly 1,3 1,1 1,0 2,1 Ita1yLuxembourg 1,1 ° 2,1 ° LuxembourgNetherlands 0 4,5 0 3,5 Netherlands 4,5 3,5

Soc. Sec. Payments as % of GNP Soc. Sec. Payments as % of GNP Belgium 16,3 15,2 Be1giumFrance 16,3 17,2 15,2 16,9 FranceGermany 17, ~18,8 16,9 17,2 GermanyIta.ly 18,8 17,1 17,2 16,4 Ita1y.Netherlands 17,1 19,9 16,4 16,2 netherlands 19,9 16,2

Unemployment Payments as % of GNP Unemployment Payments as % of GNP Belgium 0,1 0,7 BelgiumFrance 0,2 0,7 0,1 FranceGermany 0,2 0,1 0,2 GermanyItaly 0,2 0,2 0,3 ItalyNetherlands 0,9 0,3 0,6 Netherlands 0,6

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E-l Corporation Tax Yield as a percentage of G1T

Corporation Tax Yield as a percentage of G1~ 1965 1971

1965 1971 Belgium 1,9 2,5 Denmark 1,3 1,0 Be1gium 1,9 France 1,8 2,5 2,1 Denmark 1,3 1,0 Germany 2,5 1,5 France 1,8 2,1 Italy 2 2,1 Germany 2,5 1,5 Luxembourg 3,6 5,2 Italy 2 2,1 Ifetherlands 2,8 3,0 Luxembourg 3,6 5,2 Unit ed Kinßdom 1,8. 2,9 Ifether1ands 2,8 3,0 United Kinßdom 1,8. 2,9

~ "

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ENERGY SCENARIO AND EUROPEAN ENERGY INSTITUTIONS ENERGY------SCENARIO AND EUROPEAN ENERGY INSTITUTIONS ~==~====~~======~======~===~=====~~:====~======

Report by Francesco Forte Report by Francesco Forte

1. What wi 11 happen 1. What wi 11happen

It is very difficult to forecast now the possible developments It i s very difficult to for e ca st now the po s aibl e developments in the energy sector. Price s have not yet found their own stability in the energy sector. Prices hav e not yet found their own stability level, and could still flucttlate wildly in the near future. Figure s as level, and cou ld still Elu ctua te wildly in the near future, Figure s a s those in the Memo on Medium Term Economic Aspects of the Energy those in the Memo on Medium Term Economic Aspects of the Energy Crisis for the community therefore should be considered provisional. So could Crisis for the community therefore should be considered provisional. So could quantities produced in the Middle East: for some producers (i. e. Saudi quarrti tie s produced in the Middle East: for some producers (i. e, Saudi Arabia) the inducement to produce decreases with/the increase in Arabia) the inducement to produce de crease 5 wi.th-the increase in prices. Too much depends now on the political decisions that will be prices. Too much depends now on the political decisions that will be taken both by producer and consumer countries, and by the U. S. taken both by producer and con surne r countries, and by the U. S. However, it will be useful to put down some tentative points which However, it will be useful to put down some tentative poi nt s which r:;eem now to be the inevitable outcome of the pre sent situation. see rn now to be the inevitable outcome of the present situation. a) Energy will be dear in Surope, possibly dearer in the a ) Energy will be dear in ~urope, possibly dearer in the U. S. in spite of a tendency to some reduction of oilprice possibly U. S. in spite of a tendency to soin,rne reduction of oil price possibly in the next twelve monthsin, orvthe next years. This will have consequences in the next twelve months orvthe next years. This will hav e consequences of SOme importance on the ability of some European industries of sorne importance on th e abiIi ty of so me European industrie s (especially petrochemicals and heavy industry) to con;.lpete on the (especially petrochemieals and heavy industry) to corripe te on the world market, particularly with U. S. industries. world market, particularly with U. S. industries. b) Oil wi 11 continue to satisfy the largest part of Europe's b) Oil wi 11 continue to satisfy the large st part of Europe' s energy needs, although high,prices will bring old sources, like coal, energy needs, although high. prices will bring old sou r ce s , like coal, and, perhaps new ones, to the competitive threshold. Nuclear -energy and, perhaps new ones, to the competitive threshold. Nuclear energy will certainly receivela substantial boost but will not be able to change will certainly r e ce ive. a substantial boo st but will not be able to change the situation at least fór the foreseeable future. the situation at least for the fo r e seeabl.e future. c) The Middle East will not be challenged in its role of

c) The Mi.ddIe East will not be challenged in its r ö l.e of prime supplier of oil for European consumption. North Sea and other prime supplier of oil for European consum.ption. No r th Sea and other possiblé developments will not change the basic dependence of Europe po s sible developments will not change the basic dependence of Europe upon Middle Ea st oil. upon Middle East oil.

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d) Europe will be embarassed by balance of payments a) Europe will be embarassed by balance of payments problems for many years to come. The foreign accounts situation problems for many years to come , The foreign accounts situation will be tight even in the e:ighties, when it is hoped that Europe will be tight even in the t;:ighties, when it is hoped that Europe will balance its books. Eor this reason, Europe will have le ss will balance ita books. E'or this r ea son , Europe will have le ss room for manoeuvre in its relations with po~qrer countries and r oorn for manoeuvre in it s relations with po~qrer countries and with ,the U. S. ; the dollar might enjoy <;I.longperiod of unchallenged with .the U. S. ; the dollar might enjoy a long period of unchallenged supremacy.( See Memo on Medium Term Economic Aspects of 8upremacy.( See Memo on Medium Term Economic Aspects of Energy Crisis, pag. 33-36). Energy Crisis. pag. 33-36), e) It will not be easy to dispos~ of the producer countries' e) It will not be easy to di spo se of the producer countries' money, both because of their limited "absorption capacity" and the rnorie y , both because of their limited "absorption capacity" and the difficulty of giving them opportunities for guaranteed investment. difficulty of giving them opportunities for guaranteed investment. This will create monetary fluctuations and hot money runs, and This will create monetary flu ctuati.on s and hot rnoney run s, and may add to Europe 's embarassment. may add to Europe "s embarassment, f) The economies of the various European 'countries r) The e conomie S of the va r iou s European rcountr ie s will adjiust differently to hci.gh prices, energy shortages and 1 will adjiust differently to hcigh pr i ce s, energy shortages and , balance of payments problems and will thereby be driven along balance of payments problems and will thereby be driven along different and diverging paths. different and diverging paths,

2. Consequences for the European Economy 2. Conseguences for, the European Econorny

The tentative nature of the se points should not dis suade The tentative nature of these points should not dis suade us from discussing some of the consequences of the new situation us f'rorn discussing some of the ccn se quen ce e of the new aitua tion on the European economy. We have already included in point 1 a) on thc European econorn.y. We have al r eady included in point 1 a ) Europe Is reduced competitivity, and our .subsequent remarks will Europe' s reduced competitivity, and our .subsequent remarks will be of a general naturel. be of a general natu rei, a) It will be more difficulttomanage the economy, and a) It will be rno r e difficult to manage the economy, and specially.. to control inflation. The concept that the modern economy spc cially ..to control inflation. The concept that the modern economy can be "fine tuned" at the pleasure of governments will be increasingly ca.n be "fine tuned" at the pleasure of governments will be increasingly disprovéd. The high prices of energy and other imported raw materials dl spr oved. The high price$ of energy and other imported raw materials

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will add to built-in inflation for a number of years. The prolonged will add tobalance built-in of inflation payments for de£ici~ a number will add of years. some inflation The prolonged particularly for balance ofweak payments currency defici~ countries will add with sorne flexible inflation exch.ang«1 pal"ticularly rates (but for also for weak currencythose affected eountries by with them., flexible 'who will exchange have an rates easier [but life, also in for case of those affeetedprices by increases);thern-, 'who andwill monetary have an easier disorder life, will in provide case of additional

priees inereaaes);. stimoulus and or fand monetary permis disorder sivi.ty to will it. pr ovtde additional .stimoulus or/and permissivi.ty to it. b) High energy prices will influence the location of industry,b) High energy and broa.dly pr i ce s speaking, will influence of economic the loeation activity. of Investments industry,chosen and brOadly on the spb "cheaper akfng , of. energy" eeonomie basis activity. will lose Inve this atrne advantage, nt s and chosen onareas the "che long ape cpnsidered r energy"basis unfavoráble will lose (il. e. thi some s advantage, coal regions) and will areas longregain con side a much r ed unfavorable better position.(iJ. e. Thesame retuJ.'lm eoal regions) to coal - will even if to be regain a muehwelcomed better -will po si tion, in fact The create r etuna a lot to of eoal problems - ev en if (transportation, tb be welcomedpollution, - will in fact etc.) ereate which a until lot of now problems did not exist(transportation, or were not very pollution.relevant. etc.) which until now did not exist or were not very .relevant. c) There will be an',' effortto reduce, the demand for energy throughc) There more will efficient be an'." effort consumption to reduce in .the industry, demand in for transport, energy and through morein the eifident horne. New eonsumption energy saving in industry, processes in transport, will require and heavy in the home.investment, New energy and savinga well plannedpr oce s se effort s will on require a very heavy broad basis. The investment,ability and to a weH contain planned total effo energy r t on demand a very without broad basis. reducing The production ability towill eontain depend total upon energy the demandsuccess without of this effort, reducing both produetion in the energy sector will depend(i. e.upon electricity the suecess production) of this eifort, and in both industry. in the energy seetor (i. e , eIe ct r i city production) and in itndustry, d) lri order to reduce or offset the weight of oil imports ond) theIn order balance to of reduee payments, or offset European the weight countries of oi! willimports try to increase on the balanceexports, of payments, both in..genèral European é\.nd tocountz-Ie oil producings will try countries, to inere·ase with. the

~ exports,danger both irr.gene of "beggarra l and my toneighbour" oil producing poHde countries. s such with as competitive . the , '. danger ofdevaluations "beggar my andneighbour" competitive policies deals such with as oil competitive countries. , '. . j devaluations and cornpe,titive deals with oil countries. e) High energy prices will spur exploration for new

reservese) High energy Ï':l European prices countries will spur and exploration off-shore,for andnew may bring baÓ:

reserves previouslyT:l. Eu rope an non-commercial eountries and off-shore,deposits to andproduction. rnay bring This ba ck may coincide previously non -commercial deposits to produetion. This m.ay coincide

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with a world-wide boom in exploration for new oil and coal reserves. ~ A new impetus will also be given to applied scientific research on with a world-wide boorn in exploration for new oil and eoal reserves. new energy sources or on new ways of using the old ones. A new impetus 'AlU also be given to applied Bcientific research on

new energy sources or on new ways of using the oid ones.

3. Areas of possible European action

3. Areas of possible European ,action The points listed in paragraph 2) define areas of European action. They indicate possible lines of development of EEC action Thepoints listed in paragraph 2) define areas of European in new areas: which is particularly important, taking into account action. They indicate possible lines of development of EEC action the fact that it is easier to make the EEC responsible for new policies in new areas: which is particularly important, taking into a ccount than for old one s that have already been pursued by national the fact that it is easier to rnake the EECrespon6ib1e: for new poli ci e a governments. Point 2a) covers very wide issues, which in fairness than for old one 8 that have already been pursued by national - - were with us even before the energy crisis: they have been much governments. Point 2a) covers ver" wide issues, which - in fairness - aggravated and made topical by it. The nature of the problems makes were with us even before the energycrisis: they have been rnuch it very difficult to give hints on what specific policies Europe should aggravated and made topical by it. The nature of the problems ma ke s follow (this would be any way outside tlle scope of this paper).Suffice it very difficult to give hints on what specific ·policies Europe should

followit (this to say would that be the any need wayoutside for European tl.e scope economic of this control paper). will Suffice become stronger and stronger, and that the very chance of avoiding a major it to say tbat the need fo~ European economic control will become crisis may eventually depend on it. stronger and stronger,. and tha t the yery chance of avoiding a major

crisis may eventuallyPoint 2b) depend too deals on it. with a problem that is already here. The

geographicalPoint 2b) distribution too deals with of economic a problem. activity that i5 already in Europe here. is far The from

geographicalsatisfactory, distribution with congested of economic areas activity which in keep Europe on developil).g is far [rom and "' poorer areas which are not able to better their position. Left to the satisfactory, wi th conge sted areas which keep 0%1. deve lopirig and poorer[ree area working s which of.the are notable market, to the hetter adjustments their po si required rion. Left by to dearer the energy will create new and more intractable imbala.Qces. There is {ree working of'the inarket,I the adjustments required by de a r er

energya willlot to create be Grial Irnba.Ian ce plannings . There tois correct the present situation, and at least prevent it from getting worse. 3. lot to be flaid in favou.r of European territorial planning to correct

tbe present situation, and at least pr event it {rom getting worse.

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The return to coal will increase the scope of! a European energy

The returnpolicy. to coal On will the increase other hand the it scope will also of a give European fresh energy strenght to the policy. Onattractionthe other of hand the traditionalit will also industrial give fresh areas strenght of Northern to the Europe, attractiondue ofthe to the traditional fact that industrial transport areas costs areof Northern higher for Europe. coal than for due to theoil. fact This that may transport require costs :i Europea,n are highe transport-policyr for coal than for with differential oi.l; Thisrates may require for differenta Europea,n areas. transport"policy It maybe difficult with to differential give an indication rate s foras different to what areas. policyIt tomaybe follow. difficultIt is enough to give for an the indication moment to state

, , a s to whatthepo issue.li cy to follow. It is enough for the mornent to state the i s sue , Point 2c) and Ze) relating to the energy sector proper,

arePoint of extreme 2e) and 2e) importance, relating to and the are energy a great seetor challenge proper, to l.the are of extremeEuropean importanee, economy. , and The a r searche a great for challenge n~w sources to l.the or new methods~

Europeanand ecanomy. the drive The tose greatera r ch for efficiency new sources in energy or new consumption,rne thod s, will and the driverequire to greater large capital efficiency outlay in whichenergy could consumption, help considerably will to keep require largeglobal capital demand outlay at a which satisfactory could help level. considerably Great store to should keep be set on global demandthese at programmes,a sati sfa cto ry as level. it is hoped Great that store they should will not be se onlyt on reduce energy these programmes,de,mand, and as so it imports,is hoped that in the they short will run, not only but also reduce increase energy Europe's deznarid ,independence and sO imports, in the in the long short term. run, Obviou.sly, but also increase it would Europe be far-fetchedl!; independencefor the in the Europeans long te r to m, speak,o bv iou as sly the , it Americans would be far-fetched do (with some for the Europeansa.,dditional to reason: speak, ) as of theself Americans sufficiency; do but (with certainly sorrre a coordinated

~ditionalaffort rea son on )the of pointsself sufficiency; quoted may but bring certainly great a rewards. coordinated In this field, aff'o r t onit the ispo notint only s quoted neces.saryrnay bring to coordinate great rewards. nationalIn programmes,this field, if any; it i s not onlytherene isce as-sa genuinery to coordinate need for a national common programmes, approach andif institutionalany; there is aguidelines genuine need at the for EEC, a common whereby approach Europeanand countriesinstitutional could pool their guideline sefforts at the andEE C, achievements.whe re by Europe an count r ie s could pool thei r effo r t s and a chd ev errie nt.a , Point' 2d) has been very much discussed since the energy

crisisPoint" sta.rted..~2d) ha s been and verys<;>we much need dinot s cu delve s sed into since it. the It is energy obvious that I ' cr'i ai s sta..rted,~a common and standsq we (as ne ed,not it .seems delve now inta beginning it. It is to abvious develop) that will greatly a COIT1rnanstandincrea se (a Europe s it .seemsI s political now beginning credibility to develop) in the producer will greatly countrie s I increaseeyes Europe andI s immensely political credibility facilitate in the the difficult producer task countries of creatingI and eyes and irnrnensely facilitate the difficult task of creating and

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sustaining new flows of exports towards these countries. As the

1> bulk of the new exports will be in capital equipment, the pooling sustaining new flows of expo r t s towards the se countries. As the of productive capacity, technical knowledge and organisational bulk of the new exports will be in capital equipment, the pooling experience will be necessary if projects of ~uffi:cient size are to of productive capa city • technieal knowledge and organisational be launched, financed and realized. The financing side, with the expe r ien ce will be necessary if projects of f!ufficient aize are to possibility of creating joint institutions with the European and be launched, financ:;ed and realized. The finaneing side,with the the producer countrie s, will be just as important as the ability possibility of creating joint institutions with the European and to gather the necessary know-how. This point relates the energy the pr odu ce r eountrie 6, will be just as important as the ability issues with the issues of European monetary policy and with to gather the necessary know-how. This point relates the energy "Europa" dealt with by others. i s sue s with the i s sue s of European monetary poliey and with

"Eur-cpa " dealt wiAnth by EECothe policy r s. of exchanging capital equipment for oil would in due course lead to the coordination of oil supplie s, which An EEC poliey of exchanging capital equipment for oil would in turn allow the European countrie s to share the re sulti.JO.g would in due cou r se lead to the coordination of oil supplies. which . benefits. But a common supply and industrial-location policy require s would in turn allow the European eountrie s to share the re sultiJng a common oil price policy. EEC institutions to set this policy appear .benefits. But a eommon supply and industria11ocation poliey requires necessary.. The importance ofenergy prices has been so drammatically a eommon oil price poliey. EEC institutions to set this poliey appear stressed in the last year that there is no need to insist on it. The nece ssary. The importance of energy prices has ee en so dramrn.atically price of energy will certainly influence the competing ability of stre s sed in the last year tbat the r e is no need to insist on it. The European industry; affect agricoltural costs; create new trends price of energy will certainly influence the competing ability of in the location of, industry through transport costs; and affect the European industry; affect agricoltural costs; create new trends level of real welfare in the various regions of the continent. If in the Ioeation of industry through transport costs; and affect the European countries have to develop together, they must have some level of real welfare in the v ar ious regions of the continent. If degree of control over energy prices, and be able to integrate European countrie 5 have to develop toge the r , they must have some various energy sources with different pro~uction and transport degree,of control ove r energy prices, and be able to integrate costs. The Európean Steel and Coal Community. did have a price va r iou s energy sources with different production and transport policy for coal; and it ,is very well knowp that coal price s vary' (;, costs. The Eu r ope an Steel and Coal Comrn.unity. did have a pr{ce considerably for different mines, different ore grades, distance from poliey for coal; and it.18 very well known that coa.l priees vary l c . the consumption point, ecc. So the task of applying the European coal considerably for different mines, different or e grades, distance Ir orn

the con sumpti on point, e cc. So the task of applying the European coal

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price policy was by no means easy. Nevertheless, it was discharged

., honorably, and it played a useful part in the European energy policy. price policy was by no means easy. Nevertheless, it was discharged

honorably, and it played a useful part in the European energy policy.

4. Consequence s for. Europ'ean Institutions ~.

4. Conse guence s for. Europ'ean Institution s ~. pre s.,.sure on public The energy crisis is puttlngymstitutiona all over the world, and is inducing evenpres.,.sure the more on "la.issez public faire" governments The ene rgy cr i s is i s puttuii'r·lnstitutiöna all over the to intervene. This trend is al~eady visible in the U. S.and many world, and is inducing even the rno r e "laissez faire" governments countries in Europe and elsewhère. The European institutions are to intervene. This trend i e al r eady visible in the U. S. ·and many subject to the same pressure: avoiding intervention at the European countries in Europe and el sewhe re . The European institutions are level may mean throwing away a very important chance, which may subject to the same pressure: avoiding intervention at the European not occur again. level may rne an throwing away a very important chan ce , which may

not occur again. The points we have outlined above give a basic idea of the demands that are beeing made upon the European Community, The points we have outlined above give a ba si c idea of and the institutional innovations needed. the de rnand s that are beeing made upon the European Community,

and the institutionalThe innovations first need needed. is for planning, and not only at the sectoral level. European institutions are required to have a high degree The first need is for planning. and not only at the sectoral of cont:J;'ol over the European economy, if they (as above outlined) level. European institutions a.re required to have a high degree have to support global demand; launch or coordinate heavy investment of con t r ol over the European economy. if they (a s above outlined) plans to adapt the European economy to the higher ene,rgy prices; have to support global demand; Iaun ch or coordinate heavy inve stment pool resources and research veI).tures in energy; correct possible plans to adapt the European economy to the higher ene,rgy prices; industrial location imbalances; deal with the producing countriès pool resources and research ventur e a in energy; correct possible and control energy prices. Without a proper planning mechanism, industrial1ocation imbalances; de a.Iwrth the producing count rIe s there is no way of preventing the energy crisis from driving--the and contr ol energy prices. Without a proper planning rne chani srn, economie s ofvarious Eur6pean countries furthèr and further apart. the r e is no way of preventing the energy crisis from driving-the Planning at the EEC level for the àbove outlined areas of action economies of va rcou a Eur6pean countries- further and further apart. - should COver the drafting of objectives, the choice of main instruments, Plabning at the EEC level - for the above outlined areas of action ~ and the control of their actual effect. It may be too early to spell should COver the drafting of objectives. the choice of main instruments.

and the control of their actual effect. It may be too early to spell

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out the form and structure of such a mechanism, but is must be

stated that there is a definite need £01' such instituti ons, if European out the form and structure of such a me chani sm, but i s must be Government is to became a reality. stated that there is adefinite need for such instituti ons, if European Government 1S Second,to be carne thea energyreality. sector requires the speedy revamping of existing coal and nucIeàr energy institutions, and the creation Se cond, the energy sector r e qui re athe speedy revamping of. ad hoc instruments, similar to those of th~ CECA, which will of existing coa l and nu clea r energy institutions. and the creation deal specially with oil in addition to coal and nuclear energy. Their oi: ad hoc instruments, similar to those of the CECA; which will task as for oil will be to coordinate relations with the producing deal specially with oil in addition to coal and nuc1ear energy. Their countries, to monitor crude and products prices, in a word, to task as for oil wjl1 be to coordinate relations with the producing evolve a European oil supply policy. Crude oil price swill countrie S, to monitor crude and products price s, in a word, to increasingly come under public control due to the widening scope evolve a European oil Bupply poli ey. Crude oil pri ce s will of direct producer~consumer agreements, which will be negotiated increasingly come under public contral due to the widening scope by national governments, or-better still - by European institutions. of direct pr-oduce r s coneume r agreements. whieh will benegotiated The integration of oil from this source with oil coming through by national governments, or-betterstill - by European institutions. éommercial channels should be done by a European institution, The integration of oil from. thi s source with oil coming through which will also be responsible for controlling petroleum product co rnrn e r cdal chann eds should be done by a European institution, prices throughout Europe. Wide divergencies of oil product prices which will also be responsible for contrOlling petroleum product in Europeà.n countrie s could, in fact, create serious imbalance. prices throughout Eur ope. Wide dive rg enci e s of oil product pzi ce e Europe will have to be divided into zone s and price s fixed in in Europeim countr ie s could, in fact, create serious imbalance. accordance with'the Community's overall regional and territorial Europe will have to be divided into zone sand price s fixed in policy. accordance with 'the Ccrnmuni ty ' s overall regional and te rritorial

policy. Planning in the energy sector will have to take account of the need for a reasonable degree of security, and indicate the Planning in the energy sector will have to take account best way to reach this goal, through stocks, by keeping on the of the need for a r eaaona bl.e degree of security, and indicate the ~ market energy sources that are only marginally competitive, and be s t way to reach this goal, through sto ck s , by keeping on the ~ by insuring a high deg:tee of flexibility for European'energy production. market energy sources..../ that are only marginally competitive, and by insuring a high degtee--- of flexibility for European'·energy production.

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Document rédigé par 3. GI3~SCH

Document written by H. GIERSCH Dacument r~dit~ par 1. GI3ilSCH nocument written by H. GI~RSCH

1. The Case for a European Parallel Currency

1. The Case far a European Parallel Currency

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I. TheI. The Cage Case for for a European a EuropeanParallel Parallel

CurrencyCurrency

1. The1. Thocas 0 casorOT forcrr:H.ting creatingcl Europaan a EuropeanParall Parallel e1 Currency Currency iD biee.sed bas?)don tonno thecas o caseagainstaga.ins"tthe "theWerne.l·-Plan.Werner-Plan.

2. The2. TheWarner-PlanWorner-Plan ai.medaimeda1,an ai: exchange-ratean exchange-rateunion. union, i.e. i.e. a ayatema ayetem with withirrevocably irrevocablyfixed fixedexchange-rates. exchange-rates.This This approachapproachi8 bound is bound to fail to fail for forthe thefollowing following reasons: reasons:

- An- exchange-rateAn exchange-rateunion unionreaombles resemblesa price a pricecartel. cartel. It It i5 vlEiLab viable L e on l.y onlyi.n combination in combination,.,i th with a quan a quantity ti ty cartel, cartel, i.o.i.e.an agreement an agreementto regulata to regulate6upply. supply. The Thequantities quantities to betoregulated be regulated are arethe thenational na"tional money moneystocks. stocks.They They \(ouldwould hav e have to Lncr to increase eas e in approximately in approximately equal equal proportionproportionto the to themombor memborcountries' countri~s'poten.tial potentialoutput output ln orderin order to provent to prevent diaturbaneos disturbancesi'rorn fro~dif:f'erencos differencesin in thethe rateB ra"tes of inflation of inflation. •

.•. An... 81ternat:l.veAn alternativeand andmore moredirect directs uppor-f supportfor foran an exch~\ge-rateexchange-rateunion unionwould would be an be agreement an agreement with with regard regard to ratesto rates of inflation. of inflation. Inflution Inflation rates rates would would have.to have be to be roughlyr01tghly tho thee am e aame with with eorn e BomoIt30wny leewa.yf'o r'di.fferences for differences in in

producti.viproductivityty gro'W"th gro\o(thandand· f'or 'for pri oe priceril!l OB riSeS du e due to abnormnlly to abnormnlly highhit~h incomeincome ela~ticitieB elasticities cf demmld of demand ~or 1:or the the exports exports of of a. pnrticula.ra pArticularcountry. co\mtry.

Lh·'3 tJ.La",Yt tJYthet the mcmb membersers of an ofoxchange-rate an exchange-rateunion uni,oncould could

"Grosa(;l'oe on a on common (l common pace pace of wageor wage1nor08609inoroaBol:1with'withduo due nllowancoallowancofor for diEferencea di£ferences in productivity in productivity growth. growth. ThoThe purpoßo purpose would would be to be have to have roughly roughly similnr similar increaeQs increases in nB~ionnlin na~ional ~oet cost levels. levels.

ThoThe rul ~6 rul~ßto a to uppo supportr-n an e:x.chnngo-rnt an exchango-rato (\ un Lon uni'on v ouLd would hav e have to to bo In.idbo ID-iddown down in advo.nco. in advnnce,to be toderinod be do:finodin an inoperational an operational

wny waya.n dfI,ndto to b e oombLno bo combinodd w i th with e 11ec of:fectiveti va Ban C saI'lctions.t.Lon s , Sanction5 Sanctions wouldwoul requirocl require a supra-national a supra-na tionauuthority" l authority.'Exchnncra-rate Excho.ncro-rate fixifixitiytiy thattha.t 16 noti8 notvalido.\:;t'd valida\;nlby tho by thonecnssary necossa.ry policies polioies i.B boundÜ. bound to break to break down down01' voOl' 1end to 1 ead to a tol"t)trea a X'~treatt fromfrom 77 77 125 / 140 20/10/2014 F-l F-l

t., i,_ :~', 1.::-. i ';'~ "'...3~. /..GC\l:'Cance,-.cc.,rdance ,,'i th iththe thetheory the'ory .. ,,( 1 <:;'3l .. H;·:.c; .H: ~,\,' .:: ..:.n.,';'".l.ich ,",dch "'8' ·H' that an improvement in "t. t '3 '. 1)2-'~f' that an improvement in '''''lB;"pect0'.\B;5pect maymay r e s uI résultt in a i.ng" aner g"'laral aL deterioration deteriorationtmless W1less i t is.i t RccompL~n·:~·';dis fiC'comp<.'n::.',dby compby compeme eme tary tary improvements. improvemen t5 .

'3, Ihs'3, l'hGpr"bmotsl').fpr'bmotel" th'<)f th.I· '1'" 1.",:;:-Pian'1' er-P1.anthought thought that that»o Ldcy Dolicy c'''''rdiD2tie'l 't-,fouJ.d ,' ...':., .!:".bout.oou t autonmtically.automatically.(They (They thus thus ('" ;"rdin<:> ti o', "'-Fould " ,.~ )pment economics is call.ed the ·.!·,~·,f'!"h'l':~"0:rH:lto vh'2,t to vh8.tin !in '''"': ):pment" economics i5 called the d.JH·\"iJHb ':'. ,;t.·';,dar.\cod-row'th ':'. i;i;';1iaT.'.eodr6",.th) ) SuchSuchautomaticy,automaticy, however, however,

.(.t. h'Öl,(,to expech.:;, {~xpectedt ed unJ "JBun}-t'''('l'€\ ':JS t;H;d'~is supportis support from from tha the .~ncral',:i1craltrend. trend~ In Iact~ In f'act;,the the wind Wixld has has beau been blowing biowing in the in the ::·ppo.'3:ite..ppositedirection; direction;'14\)Jlavewo J-;,aveobserved: observed:

AT'.- incrßRFl RI' inc:reafJi.ngneedi.n{; nee·J :for for demand demand management management and and growth growth ~01icy~olicya:fter after th9 theend endof the of thepoatwar postwarreconstruction reconstruction period.pertod,

:J trenethenüu:;:'-1trengthen:u'/:;01' (:',)s"tof' C';)8pust n push1.' ,"nd t",ndl$nciesI,H1Ci es due due to a to a .'.owdG'wn,:.owdow"n of .l~.:'alof :cüü.l gro'h'thfP'01Jthin I'",:une in 8':::lI1ecountries,countries r

the failurethe failure of U.S.of U.S. incomeincome ~Dl~cy policy in 1966, in 1966,

~ S.1li.ntensif'i"3d~ e.n intensifiedBocial social.unrei"t; unreetand and a fiarcer a f'iercer struggle struggle

withHith the the incom~ incomed:latrj.buti,·'H distrj.buti.');lai't~n~ af't(,);'thetha events even.tsOJ. l'1ay01 Nay

196At 196.'3,

- thH~ thAi'load;ng :flooding ot rh,of wQr1.dt:}:;; WQx},d;ith,ith doLl.a dollarsr-s in the in the second second

11<:;,1I' of tho s -)): ti fiS I

~n crea;;;,iT'.{;~ncrea;",.ll\{;pe"L~,.r",Spoor'P;.'"s::"-,~nel:\f-, :..~'·~~n",':I~'':.,:f g,yvernmenta{):f g",yernmentsan •..! and.central central

!;;:ulkat;;:Ul.ksvis-a- vis-à-v.:t."V·~~."> in.1."lH. irU'lnci,)ü cion in G in'."'horal.Gc>ueral.

\;1 ',~ th rth at e ratos s 01' j.!"01'Clati.onirClati.oneIns€! closeto o tor' above or above 10 per 10 per c en t cent 1,(~ . \:J' dilferencosdifferences .,in 'i.nflation ..in 'in:flation rates ratesf rom ix'omcoun cOWl.tryt r'y to to

,'\11\:. :'Im(y i.t c}'end tend to btoecome bec;:-me a . ':Bntuatad. a;,:;;;utuated. lU,thout\{:i,thouta a prior prior ,ût.,!,;; Lo cond.:'tiçl ". ,'''Y'P''[.H3.chingpricelevel stability th'.'n.>th",!€! is little is little cnancchi:..ncee .":'(1. .:"Cla.n.yreturn any return to ,atosystem ,a system of o:f

fj .\.~:lf:i'\.ecl ex chan exchange-rat. g e-cr e t ~!5 K::i..'Ja t.}.~\:l.outLt :iUrastrietionst res tri etions on international on international

.plY,i!,'nts.f;:\y.n,'nts. We. aWc r-o al'O:;;)iw.;.-;;:Jin.gL" 1ivI') L:' l.i..I') ••..i.tü wit"o:floatingfloatingrates rates whetherwhether We 1ika we likoit or Jt not. or not.

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4. It4. would It would be good be goodif two if two principles principles governed governed the theway way to Europesnto European Honetary Honetary l!nion: 't!nion:gradualism gradualisßl and and automaticity. automaticity. TheThe :first first has hasprima primaf'acie f'acieadvantages advantagesaa has as has bean been experiencedexperienced in the in the removal removal of tarißs. of tarifis.Automaticity Automaticity can can . . taketake the the :form form o~ a of' political a political commitment commitment to a to specif'ic a specific timetime Bchedule schedule or of'.a or of, well-designed a well-designedmechani~ßl mechani~mgoverned governed by marketby market :forces. forces. With With all all respect respect :for for the the achiev~ments achiev~ments of enlightenedof enlightened politi.cians politLcians end and state8men statesmen I am I confident am confident thatthat a European a European money money will willeither either be the be thecreature creature of' of a Europeana European etats state or it orwill it will emerge'because emerge'because the theneed needtor tor it expressesit expresses itsel:f itself in'the in'the market. market.

,. The,. Themarket market will' will decide decide what whatform formthe theEuropean European Money Money may m~y , . . , take.tw(e. Candidate CandidateSs are are the thedollar, dollar, the thepound pound or any or anyother other ~embermember coqntry country curreney currency wor- aor new a new unit unit which which 18 launched is launched in competitionin competition with with existing existing moneys. moneys. A new A new unit unit has h~s many many obviousobvious advantages. advantages. Its Its drawback drawback i6 that is that ithas it has no. no. historyhistoryl'rom f'rom",hieh whichcon:fidence confidence can canbe derived. be derived. And And itneeds it needs overwhelmingoverwhelming confidance confidence until untilit can it can claim claim to off'er to offer similarsimilar scala scale economies economies.8e the as thedollar dollar or the or the pound pound. , The The confidence'confidence towards t,owards a new a newmoney moneyroust mustresult result :from from promises promises attachedattached to it, to it, andand the the promise pr.omise that thát matters matters is the is the '. . promieepromise o~ an of ~terest an interest which which thG theholder holder can can expect expect to to eamearn in terms in termsof an of appreciation an appreoiation vis-a-visother vis-à-vis other moneys moneys and and(po881bly (possiblyalso) also) via-a-via vis-à-vis goode goods and and servioes. servioes.

79 19

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PoseiblePossible Definitions Definitions of a of a CommonCommonEuropean EuropeanUnit Unit of Account of Account

.. "

. 1. One1. One of the of thef'unCt:i.o115 functionsa good a goodmoneyhas mO!A.eyhas to perform to perform ia is to betoa be unit a unitof account. of account.jn th.is jI1.thisf'Wl.cti.on.it f'unctioT.lithas hasto to f'acilitatef'acilitate (ex (expost) post) profit profit and and1055 loss~ccounti.ng accounting and and (ex (exante) ante) coet-benefit cost-benefit accounting a.ccounting in al~ in alldecisi.on decisi.on JlH\kingm~kingW'li. t units.So•

:2.lnl.~"t:2. f\'hataa good goodun Lt unitof' a.ccoun of accountt means means Ls reveal is reveal ed in ed in p3riodsp8riods of inflation. of inflation. When When the the value value of money· of money daterioratesdeteriorates tha the tradit~onal traditional usa use of historical of' historical prices prices in calculatingin calculating depreciation depreciation allowances allowances leads leads to an to an underassessrnentunderassessment of caste of' costs and and to an to overassessment an overassessment of of profits.profits.Some Someeconomic economic activities activities which which are are socially socially wasteful,wasteful, appear appear to ba to profitable. be profitable. The The result result will will be be a rni.saal10 misalloo-ationoation. o f resources. of resources.Thi.s This1.s partl is partlv_or.,whol1.yy _or__wholly compensatedcompensated to the to the extent extent that that inflation inf1.ationraises ·raises the the / / levellevelof' employment of employment and and capacity capacity utilization utilization - as- itas it happenshappens as lang as long a5 inflation as inflation 15 at is least at least partly partly unanticipatedunanticipatedby wage by wage and and price price setters. setters.

I J, Sooner3. Sooner or later or lateI' ~ if ;if~t iB itto .is remain to remain unanticipated unanticipated,f inflation inflation 'must'mustaccelerate.-·---'--1'his---ie:the·"st-ägä-we accelerate 1'his'--is'theO'st-âgë-'.wehavereachedhave reached no'h"nowin mostEC in mostmamber EC n1HmbercOW1tries countriesandand elseW'here.e1.se\{here. Areturn A return to lessto leaainflationbocümes inflationbücomesmore more and and more more urgent, urgent, but but a~so a.1.so moremore and and more moredi.f.l'j.cul dil~.cieult.t. ·One ,Oneof: tha of thetwo twoaolutions so1.utions to the to the problemprob1.em of accele!.'ating of accelerating inflation inflation is the is the introduct:i.on introduction of of a newa new uni t unitof ac of count account. • Inf:lation Inf'lation can can thus thus support support the the casecasefor for a Common a CommonEuropean EuropeanCux-rencY. Currency. f

4. It4.'Will It willbe aS5umed be assumed in the in the subsequant subsequent diacussion discussion

- thatthat a EU:r'opean a European Currenc:·t Currencyto be to called be called tha the"Europa" "Europa"i.s to is to be iSBuedbe issued parallel parallel to national to nationalcurrencies, currencies,

80 80

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•• that;.. that the thelIEuroRa" IIEuroRal!isis to b€l toattractive be attractive enough enough to to squeezesqueeze national national currencies currencies gradually gradually out out o~ the of the marketmarket and and

0:,. tha~t thatthe theHr>,Lrof'a '!r>,tr'0I'a" 11 La attractiia attractive ve enough enough to become to become a 'WorldEI.world currency currency i.n tha inthasense sensethat that it can it can Buccessful.ly successfully competecompete ••i th with th-a the dolJ.uJ.'"doLLaI" in interoontinental :lrL interoontinentaltrans- trans- actione.actions.

AttractivenessAttractiveness will, will,therefora t11erefore,t be decisive be decisivein choosing in choosing amongamong poss1bla possibletypes typesof definitions of definitions ror for a Common a Common EuropeanEuropean Unit Unitor Account. of Aocount.

J. M~8tJ. M~stappropriate appropriatefor forindividual. individual users usersin the in theCommunity Community ,",ouldwouldbe a beund, at unitof account of account

that.. that had had Bome some relation relation to existing to existing nät~onal nàtional currencies. currencies,

- thatthat was was stable stabla in terms in terjns of thoseof those commodities commodities which which couldcou1.

- that- thatwas was stable stablein tarms in terms of a, of' repreaentative a. representative basket basket of' of

consumerconswner's1e g-OOdB. goods.

6. An6.a.ppropriflt<~ An appropriotf~r''-' -:-:+-1··np.h~.s+l'.ruO:h' ; ...."'tI,,(~P'. .'; .,tW(~"";thethe "Europa IIEuropallandll ari d the the r.''''' nationalnationalr:nrronc;:,_'}t":1trronC'i f"'.t:-.'< f'~,nb- .q"~ h"+;;lbJ,5_:'",j--,e(l .".~t;abJi~,'l.od if th~if thef'o r-m formerer- iB de:fineu is defineù

EiS aasb ag a bag01' t.t.€ of thelatt""" .l.attt'1.!:. • .t">.n. _ t;;j."alll}!~i..n ~,j..aill1J.ia (I is fiaurnd fUI'nished s n ed by the by the

d erromdencmina.tioIl Ln at Lc n o f' t ofh e the l:uJ.'·co Lurco Lo ari loans s , wher'Af wher"ean -Eureo an Eurco is tho is tho

s urnalUn o:f Dt-iof O.9U DH 0.90.,(.",,:rir-h>',,<'W,;ri.r~h" 28.9 28.9?'~), )I;)t~f'rcsf t~frCD1.20 1.20 (weigllt (weit;Ïlt 22.) 22.)%), %), t 0.075£ 0.075 (weight(weight 14.6 14.6~)t ~),L 80L (weight 80 (weight 9·9 9.9 _). ~), hfl h£l 0.75 0.75 (weight(weight10.1 10.1 ,~), ?O, bf'r bf'r1r• 50i...50(weight(weight9.5 9.,5%), %)dkrf dkr 0.20 0.20(weight (weight

2.7 2.7%) t ~),Irish Irishs: 0,00)1:. 0,005(lfeight (m;dl:.~ht1 %) 1end %) end Lux Lux frc:s Îrc.'30.500.50 (weight(weight 1 'i4).1 %). TheThe raterate between betweentriO thonumbers numbers of uni. oft w1is of te any of any '(;\00 1;"'0currenciescurrenci.os in thein thebag bag i8 determined is determinedby the by the (cross) (cross) exchange-rate exchange-rate prevailinaprevailing in th(l in th~mqrket m6rkot e.nd and the the relative relativo weights. woightB. The The ,;.,..p high91"higherQ coun a countr'Y'8t r y 18 '-.'"P',IU) ".I\!:Igr~· a ;rrr'at.\t't H' :i ~ th~ i:i th~ veiGh '..eiGhtt 0 f' i of'ts its eur~encycurrency in the in thehag. bag.

81 81

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7. The7. The exchange-rates exchange-rates applied applied in calculating in calculating the thenumber number o~ units of units of eachof each currency currency can canbe fixed be fixed or adjustable. or adjustable.

-A -:fi%~dA f'ix'!'dsystemsystem of rates of' rates - as - implied as implied in the in the Eurco Eurco definition def'inition - -

.• mit;h.. mieht s o tori soonbecome becomeunreal unrealLa tic. is tic.Ix marketexchnri/;e-rn If marketexchari/~e-rntes tescon t:IIlIlU con t;j11110

to varyto varyurrd e underr- the the impact impact of' di1'.ferences 01' di1'f'erencesin rates in rates of' 1nl'latioH of' in1'latioH,t 1tB value1m value of the of' the Eur:co Eur.coin terms in terms of' goods of' goods end and services services will will thon then changechange according according to the to theweJghted weig-hted av,erage aVßrage of' the of the inflation inf'lation rfttes rates at artificialat artificial weig~ts weigftts which which will will no langer no longer reflect reflect the the relative relative. importanceimportance of the of the respective respective national nationalGNPs GNPsin real in real terms. terms.

- If- everyIf every currency currency revaluatiortfvie-d-vis revaluationfvis-i-vis the the rest rest of tho of thebaG baG werewere compensated compensated by a by correeponding a corresponding reduction reduction of the of the number number 01' uniof te units01' the of' the currency currency in the in the bar;;end' ba~;andifif' - convcrsely- conversely - every- every devaluationdevaluation were were matohed matched by a by corresponding à corresponding increase increase in the in the numbernumber of units of units01' the of the currency currency in the,~ag. in the~~ag. the the Europa Europa wouldwould reflect ref'lect the the inflation inf'lation rate rate of the of themember member currencies currencies whose whose parityparity hadnot had not been been changed. changed.

- The'Europa- The. Europa would would have have a,stable a'stable external external value value (~n (in tenns terms of of gold,gold, SDRs 8DRs or any or any third third currency) currency)i!" the :Lf'.theprevious previous f'onnula formula werewere applied applied with with the the modif'ication modification that that ,appre~iati.on8 .appreciations and and depreoiationsdepreoiations were vere measured measuredwi th with ref'erence ref'erence to g tooLd gold, , S;)Rs 8DRs or or any.any. third thirdcurrency. currency.jI i'

- The- The Eurol?A. Europawould would be tierl be tiedto the to the ~tronC'e~t stronge:.'5tcurrency currcncy jn tho :in the ha.g. bag,if only if' only devaluations devaluations wer~. wèr~. perm:i.ttedvis-a-vis permitted vis-à-vis thc ther-est rest of the'hag,of the'bag, if'deval.uations if' deval.uations ware wère compensated compensatedby a by corres- a corres- pondingponding increase increasein the in thenumber number of un:i.ts of' unitsin the in thebag bagand andif if oneone currency currency (the (the stronge6t) strongest) would would never never depreciate. depreciate.

- The- The Europa'would Europa would also also be tied be tied to the to the strongest strongest currency currency

in thein theba~, ba~, if, if, in case in case revaluations revaluations were were permitted permitted,t they they wouldwould be treated be treatedaB devaluations as devaluationsof' the of' the other other currencies currencies in thein thebag. bag.

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_ The_ The Eur(:?aEur(:.:>a ,•..ould,",ouldappreciateapprkeciate vis-a.-vis vis-à-vis any anycurrency currency in th~~,in th~~,if: i~~during during the the period periodof reference, of re~erence, everyeyery currency currency ,",oulddepreciate would depreciate at least at ~east once once v~s-a-visvis-à-vis the the others others so that so that the the number number of units o~ units or everyof every currency currency WQuld would increase increase due due to the to the compensat~oncompensation formula. formu~a.

- .:rhe-, TheEuropa Europavould'''ould appreciateappreciate vis-a-vis vis-à-visthe thestrongest strongest currencycurrency independent independent of whether of whether thera there were were exchange-rate exchange-rate changaschanges and and·it could -it cou~dbe made be madestronger stronger t1:-.an thanthe thedOlla:r:, dollar, if theif thenumber number of units of units of each of each CUFrency currency ~n the in the bag bag wouldwould be increased be increasedby x by - z x per- z per cent, cent, whenever whenever the the weightedweighted average average of the of the national nationa~ oonsumer·price consumer price indices indices hadhad increasad increasedby .x byxpercant. percent.x could x could be of be the of the order order of' magnitudeof magnitudeof 5. ofz 5. may z may be zero; be zero; but but if anybody if anybodyGa", Saw advantagesadvantages in an in inflation an inflation ",hieh which could could be fully be ful~y anticipatad,anticipated, he could he could argue argue in favour in favourof a ofZ aor z of oneone or two or two ~ and- and a correspondingly a correspondingly higher higher interest interest on claimson claims denominated denominated in Europaa. in Europas.

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Document rédigé par P. LYNCH

Document redieeDocumentparwrittenP. LYNCH by P. LYNCH

Document written by F. LYNCH

1. Monetary integration - A note on the Irish experience

L Monetary integration - A note on the Irish experience

132 / 140 20/10/2014 0-1 um-26 U:E1Jl-26 G-l MONETARY E7EGPAT:lüHMONETARY E'~EGPATIOH

ù no'tE> on the I~'i sh exp0l-iene':)

b,r bv.' ., Patrick !4uoh.pa.trick l.\1'iloh.

"11 est verJüs"ilda est se per:iiÜs demander de si selEIS demander~,:i;,.~:: si:_:;'.<'HI3 his,:su ii.v . .,1Les .:,I.<'ilS suivies , "\... .•. refletent da.r~fiètent pre s ou de de. 101n pr'ès un ou debut de loinde' C lmi) ,lc::'.f·t d~buti ou d,; d I COilC;:'j;,'p.:mune d Iune vari babIe palivéri tique ta.ble regionale poli tiqueda.~s régionaleIa CO.lllnuMut~1l da7s la.I COlillnunaute" I

Today the RepublicToday the or Ireland Republic Lsoi' a Irelandsmall pe isr i phera a. small I periphers.l

European economy,European bub: economy,by a ~ radox but, by of a hi IRstory ra.doxi ts of GX1)erience history its shed eXIJE)rienoe s sheds

some light onsome.the lightpr-ob l.ems on theof aohieving problems ofeooncaüc achievingand eoollomic11

in a very muchingreater a very much geographio8.lgreater geographioa.lar-ea such a s area the Europeansuch as theEconomi,c European Economic

C onununi ty • Communi ty .

Prior to the PriorUnion to01' thetihe UnionBritishof und the 11"i8h British and Irish

parliaments inparliaments1801 each in oountry 1801 each had aseparate country had currency a separate e.nd currency retained a.nd retained

it until 1826whenit until both 1826 cur-rene when Lea both ware currencies assimilated. were assimilated. (Ino.identally, (Incidentally,

one membar cronethe member British ofparliament the Britishsu~gestadtl~t parliament su~gested it should thatbe it a should be a

deciroal currenoy!).decimal currenoy~).Th18 ended a Thiscontraversy ended aove controversy1" Iri sh monetary over Irish monetary

policy which policybad gonewhichon for hadnea.rly gone on0. forquar+er nee.rly ofß. aquarter century. ofAnd., a century.to And" to

quote Frank W.quoteFetter Frank2, uW.For Fetter2,mor-e than "For a century more than a.nd aa century qua t-be r- and Er-e a Land qu.art,,!" , Ireland.

a s part of theas lidparttedofKiuf:;dom. the Uni tedas a KinGdom. member 01' asth':J a. memberBY'itish ofCOmJ'llOlIWaOolth the Bd tish Commonwealth

of Nations,. andof Nations, a s an independontand as a.n RepubLdc,independent has Republic,i!i~.inl.;ained ha",its J.n,.)nl~,Üned cur r-ency it.s currency

at par with theat par British wi thpound the British through pOUlldredemF[;.ion throughin redemptionLorulon exühEeilCO in L(;n.clon eXChE'i1CO

and aale of' Lendenand sale exchange, of London in exchange, line with in the linel'eCOI;1Jf""ildütions wi th the r0cOrrLn!(;::J.d.ütionsof the of' the

Committee ofCo~ittee 1804". of 1804".

The 1804 CommitteeThe 1804to Committeevllüch Fettf.;T to whichl·t;·fe .•~s Fettf.;l'rroduo6d l'L.forsEi. produce.d &.

report by a Unitedreport Kingdom by a. UniParliamento..ry ted Kingdom ParliamentaryCOlfll,d ttö.;, 0i:" COI!1l;dtteo lIrha Ci rcu.Ia où-U.ng flIhs Ci r-::ulaUng

ti Paper, the Specia,Paper, and tho the Specie,Current andCoin the Current of Ir'3l::l.ndCoin, of[t Ir':;land.!i,(;ont~tined, ft (;ont.;~'-ined,

------_ ..-..---_-.._>------", 1. DEM- 18 1.Papier DEM - de18 MM.PapierClappisr deet MMBro\Iwers:Clappiar etAll$..lysü Brouwers::cri tique All&lysE.> critique de la premierede etape la. premiere de ItUnion etapee~oa0~llque de l'Uniona~ ecOt10wique mouetaire 131; monetaire europeenne" européenne"p.3 p.3

2. The lrish2. Pound The lriCA llen 8h Pound and Urr..vin. (AllenLod.on a.nd Umvin,1955) Lou:lonpe 62 1955) P< 62

87 87 133 / 140 20/10/2014 Q-1 G-l

eccor-daccordingLng to Fett.,r.to Fetter "a ,itali).rge l~rge part partoI' nhe ofdoctrine "the doctrine later later Li.cor-por-a ir.corporatedted

in theinBullion the BullionReport ~eporton the onrelation the rela.t:ion between betweenmonetary monetaryand ba.nking and banking

poliey.policy,pr Ice prices, s , international internationalpaymen~;5, paymen.:s,speeie speciepremium, premium,and exchange and exchaD{';e

rates ra te110 • s • •• - tha- exchangethe exchangesituation situationbetween betweenindependent independentmonetary monetary

systemssystems in the insame the saxœpolitical politicalsovereignty sovereignty •••• n3... • .113The. B~11ionThe BullionReport Report

of theofUnited the United Kingdom Kingdom Par1iamantary ParliamentaryCommittee Committeewas pub1ished was published in 181Qj in 1810;

it achievedit achievedpapular popularfa.rn.e famein tha in English the Englishspeaking speakingworldworld and badand an had an

influenceinfluence on economio on economic poliey policy unequalled uneqU8.lledby aDiY byother aDiY other public public documant docuroant

on monetaryon monetary problems. problems.David David Rioardo' Rioardo's name s name had been had beenassociated associatedwith with

it part1yi t partly for 1egendary for legendary rea eona, reasons.In an:y'event. In any' event,the Bullion the BullionReport Report becamebecame the orthodoxy the orthodoxyof ninetflf,nthof nineteen.thcentury century British Britisheconomics. economics.Its Its

lllain tœ.inprinciple principle was that was thatthc. monet&ry the monetaryauthority authority ;in an ;in areacan an area naintain can ne.intain a stablea stable exehange exohange rate rate i1hrough ilhrough the use the of' use itsof' externalits external re ser-ve reservess and and

cbangechangess in credit in credit pelioy. pelicy.This Thiswas the was doctrine the doctrine,acoepted acoeptedby by two directorsoftwo directorsthe of Ba.nk the Bank01: Ireland. of Ireland,Arthur Arthur Guinness Guinness(the, (thegreat greatbrewer) brewer) and Williamand William Peter Peter LUDell Lunell in their in theirevilience evilienceto the to}2arliamentary the }2a.rliamentar:v:Commi Committeette6 whosewhoserecommendations recammendationsled to ledthe to assimilation the assimilationof the of British the Britishand Irish and Irish

currenc1escurrenciesin 1826. in 1826.

This Thispolioy 'policyof a ssIm of assimilatïioni Latd.on ha.d immediate had immediatedeflatiol'.s.ry deflationary effectseffectsfor the forIrish the Irish monetary monetaryeconomy. economy.,IIt i;:; "ItLr-ordce is ironical I trlZ'3; thaJ..;thEJ poliey th", policy wi thwith whioh whichArthur .ArthurGuinness Guinness was B.ssociatad was associateda 0 a a.a benker a banker1W,~' ',;:,~, lir".~'ci' '. ,,'c''::;l1e ci' '::;he

äausesoauses of his often hisbad ten yoars bad years a s a asbrewertl'l:. a brewertt4. ~h(j a.ssimi.lf:..t;ioIl of th:;;. two ourrenciestwo ourrencies in 1826 in 1826 oonsolida'Ged consolida..c;ed the pr-ogr-eseive the prog;resdV'E; rbi:-:"h,~)~ion r6i'C:.1uution of ehe of ;;he

IrishIrish pound pound wbioh wb.ichbad been had been depressingdepressingIrisll Irishexpor-t exports s 8~~~:-::.r.o 8:'.;':.('0181f... 181[,.'I'he The

year 1826 marked for Irela.nd the beginning of an ecoT,or,..i'J Jnn.laisc correspondingcorresponding to what to whatGreat GreatBritainBritain was to was expe to r-Leexperieno6noe ::,1 ~:,ütwar:ti"d::;1 t;:lc,t;war:t.i.öt! .. ! oentur;ycenturyafter afterthc return the returnto the te gold the goldsta.ndllrd sta.nde.rdin 1925. in 1925.Hntil TTntil comparativelycomparatively rece>n,tlY the economicthe economicfitagMti(ln Rtagnationc f LreIe cf' Ireland. nd, including including 1846/4'(l84614'¥ thc. greatthe great faminej,famine for j,mos fort mosto I' tihe ofnineooenth the nineteenthcentvr,r cent;;::.'L8..,~ been La.,-; beenexp Ia expla.inedi ned

3. 3. Ibid ,tJ.5 4. 4. Guinness's Erewery in the Irish EconoJ1~~' 17é.~ - l)Y pe.trick Lynch and John Vaizey (Cambriè.ë(':;-'P6Ci). 88 88

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largely in political C~:l.j ê)cÎf...l tOl-,1iS - ünd, 111 1.;;1üpinioll.

inoo!'!'eotly. inco!"~otly. The adoption of ]~',,_,"-'ß,n technicj'u$s ~lld lX\~;t-

Keynesian national income accounting :<'C.apt3 have, LOWl3vt3j., helped greatlyhelpedin t1"'eätingproblema greatly in treatingof'economio problems u6velopment. of economic development. and the historyandcf the11"'e1ano historyin ofthe Irelandnineteenth in theoentrury nineteenthand ~>,el'century Ls and ~>.er is 5 5 no exo€lptionno • exoeption .

The Irish experienceThe Irishstrongly experience sUß;csts stronglythat sUßgdsts that

the introductionthe introductionof eoonomic and of economicmonetary andunion monetary 1s feasible unionin is feasible in

an EEC contextan provided EEC context that provided the 80c1a1 tha.t and theregional social andfolicies regionalof folicies of

the Communitytheare Communitya1ready suffioi~ntly are already suffici:3ntly effective to e'ffectiveprevent a to prevent a

one-way movementofone-way the movement i'actor~_~~J?.!"oduotion, of the factors,_ofLabour-.~roduction,and capi labourtal and capital

f'rom the per;j.,plleryfrom the towards perj..pherythe 0sr.tre towardsand the so c6ntredestroying and sothedestroying whole the whole

ooncept of anooncepteconomically of an economicallyand socia11y and balanced socially oorr~unity. ba.lanced Between community. Be't;ween

1826 and the 18261950' ands there the 1950'was almost s there eontinuouswas almostom-way continuous ~bility OM-way mobility

of the two factarsof the labour two factors and oapitallabour.way and capital trom Ireland. _way from ' Tll3Ireland. Th.3

result was emigration.result was ullElmploym.entandemigration, unemploymenteconomio and stagnation. economic stagnation.There There

'ia little doubtis little that monetar,y doubt that union monetarywith the union UnitedwithKingdom the United arrested Kingdom arrested

aeonomie growtheconomicuntil growth such time untilas such these timedeterrElntsas these todeterrentsgrowt~ werete growtll were

1 identif'ied andidentified eventually andoff-set. eventuallyIn off-set.the 1930 fl In<:, thepoLi.cy1930' of'ß

j economio proteotioneconomic was proteotion adopbed, was Itadopted. had Hmit8d It;';'I1{:C:'.3 had Hmi'tedj f\r.d m.Kc.~'3 !'u:d.

ia now disappearingis now d.isappe~ringin Une wi th in the line11bez:alization with the libe~alizationof trade of trade

inte:rnationally.internationally. After 1956 inoentiv,~ E for' .i?1'O!Ü:,)(;::,: '6 ';'L~'Ol~;"

orients. ted industrieorientated s were industries introduoed, were introdlloe.d, In a~~J ;;;,vec.jit. n s 'rla s 1)<0'.>:.~'.

poi~ted,. out-ctarif'fpointed"proteotion out- 6tarif'i'an(:l proteotion"'X.PU):tsub anÙ~j:-,-ii1;;; EiXPOI't ,:,:,,..~ ,;ub~h-'; ßlj..if1;;;",ft,,,,<>.,~n.'o;; "Xl':: "~l1.i;:,,, I I eff'ect as deveeffectLuation as of devaluation bhe l)urreno~r. of the ourrency.

:, The Irish experienceWQc.:ld. /;"";"" .LL, .'t~",~;..)

ne.ny of the eontfJntionsmany of the of contfJntiünsof Sir Donald j,1'3 Sirc D,),.{:'...':Donald~~l ~,l~(:l.5.' Dü L !"'; " ~n l.J,' .. "è'.::""'::' J. 'C':

------~------,--'"',._"-,-,_.~,,"-,---_.,--,-,,.-,-,_._ ..,,-_. 5, See Ibid and MalcolmThe Hi~!11anl' Gray ,~>.':"~!.')lf,', • .' 7:5:),_,~r.;~0 -':_~.:.:..~·~""'-'l,-:.~~f.~l. .,hu ,- 5. Stle Ibid and Malcok Grny ~ T!'18_ •..•. Hig!'11and -T.__ ..J:...... • ..-'_, __,E(;.~..')rr."_ ..7::'~J..jt J , Ir i sh E.xp':l)·iel,,'6" '~':" t- iJt .'" _."--·"-i"~~."':': .. " Centr~l BarL

LcoDomjc andECODCJ:t!ÜCand Moneta~ Union Monetary which Union he pres6nted which he at presented the second at the second.

meatinl!:oI' mestin!::the Group ofUl!M-8, the Groupin Partioular, U.I!M-8, in Particular,perhaps, in perhaps, his viewa in on his views on

~he harmonizationthe harmonization of fiscal policies. of fiscal policies.It points fUrther It points further

co the neoessitytù the for neoessity adequate for emphasis adequate on emphasis the rale onof theractor role of factor

mobili ty inmabilian integratedty in an integratedcur-r-sncy ar-ea ourrency , It ..also area. indicates It..alsa that indicates that

n certain regionala certain autonomy regional in autonomymonetary in and monetary aconomio·matters and economiomattersis is

~ossible aud,~ossible indaed, and, useful indeed, in the useful contaxt in the ofp1~nned context ofaoonomic planned eoonomic

9.nd SDC LaI~nd development. social development.

starting framstarting the basic frompoint the basic of agreement point of agreement

with Sir Dorualdwith SirMacDouga11 Donaldt MaoDougall,the Irish. experience the Irish experience suggosts:- suggests:-

1, The dis·tinctiva1. The distinctive feature of featurea regional of a eoonODl3'" regional eoonomy

as againstas a n,atiorialagainst aaconoIlliY, nationalis econoIDiY, its opelJn~·ss; is itsi openn~-ss;t it

cannot influenoecannot the influenceterms cf the itsterms "externalof itsn "external"trade trade

in relation into relationits "internal" to its "internal" product. product.

2. Any economy2. Any - hausehold,economy - household, regional ar·national regional or-national - must - must be.Lance itsbalanceextarnalits acoount. external Anationalacoount. A (autonomaus) national (autonomous)

aoonomy, howaver,economy. hashowever, a wida hasmeasura a wide of measure discretion of discretion

(through impoT~-ccntral,(through impor-t:..oontro tiscal and l, fioradit seal and.polioy, credit policy.

exohangf:l-ratepolioy)exchánge-rate in po'Hcy) relatingin the relating naed tor the the need for the

exl;ernal balanceexternal to balancethe desirable to the volume desirablecf domestiovolume of domestic

employment employmentand price trends. and priceFor trends.a regio~l For aeconamy, regional eeonOIDi'f.

on the contraryon the7 pricea contrary,are pricesfixed exterDally are fixed externallyas aj-e as are

expor-b earningsexport and earnings , to a very and, large to a very extent, large incomes extent. incomes

and sU6tainableand suétainable employment.employment. In short; a In region short, is a region is

dominated bydominatedexogenoue by determinante exogenous determinantsunless thera unlessare there are

.coun~arvailingeoun~arvailing foroes oonsoiously forces oonsoiouslydeplayed to deployedpreserve to preserve

these elelliAutstheseof elementsthe region of theworth regionpreserving~ worth preserv~ng~

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3. In the3. ca seIn ofthe congested case of congested regions the regionsoutwardthemtiwemen't outward mmvement thc the of.'facto1"Sf' of' production. especially of labour and of'factot"s•..... o..... production, e specially of Iabour and

capital maycapital be eonsideredmay be considered an equilibrating an equilibrating one. This one. This

movement Lsmovement indueed isby inducedthe externally by the externallydominated dominated IeveI level

of, and ch~ngesot, and in. changes eeonomie in,activity. economic activity.In tha oase Inof the case ot

the large theEuropean largeperiphera1 European peripheralregions, however, regions.such however. such

mobility innIDbility fact constitutes in fact ~onstitutes a destabilizing a destabilizing and a and a

generallygenerally debi1itating debilitating flight of flightcapita1 of and capitalof active and of active

population,population,leaving tha leaving regionwith'a the regiondisproportionately with'a disproportionately

high per capitahigh percost capitaof soeial cost otservicessocialand services of inf'ra- andot infra-

sbructurestructure while the while taxable theoaff'.oity taxable tocap1maatcity the tocost meet the cost

i5 reduoed.is reduced.This i6 theThis lessonis theof lessonthe Irish of the experience Irish experience

up to theup 1950 to1s. the 1950's.Asolid eubAstiruc solidture substructure of economioot economic

integration integrationi8 e.. pre-oondition is a pre-oonditionof monatary of integration.monetary integration.

4. In the4. United In the Kingdom Unitedthe Kingdomtransfers the transfers of inoomeofthrough income through

the .cerrbr-e.Lthegovernment central governmentbudget go budget a long goway ato long off way set to otfset

the sooia1the and sooialinfrastructural and intra structuralcost of a costbackwal"dof a01" backward or

deprasseddepressed region and regionare, of' andcour-se are. ,ot V9'f"Jcourse.relevant very within relevant within

the oontaxt theof context a COD1lI!uniot tya CommunityRegional Polioy. Regional ItPolioy. should It be should be

elnpbasizedemphasizedthat the Ollse thattor thethese case tor transfers these transters in the EEC in the EEC

rnay be considerablymay be considerably sbr-onger than strongerisa. t thanpre serrt is atgenerally present generally

apprecie.tedwhenappreciated such whenunrenlllY19rated such unremuneratedse r-vi.ce a a services s pr-e scr-vatasLon preservation

of' envirorunents.lof ënviromnents.lameni.td.e s amenitiese,e broughte,eintobroughtthe reckoning.into the reckoning.

Rere again,·Here theagain,Irish theexperienoe Irish experience provide s evidanoe providestl evidence.at the that the

J sc-ca.Ll.ed so-calledeoonomical1yeoonomically depressed depressed areas ar-e, al"eaS in fo.c are..;:, tiho in sefo.cJ.;, those

wU. eh "r", wtichof most r;rt' r-eLevanceof most relevancef'r-om the viewpoint from the viewpoint ofan ofa.n

environmentenvironment whose va.lues whoSI;!valuesmust be a ssemust ased be inassessed ae sbhe+dc in aesthet.ic rather rather

than in meaaurabthan in Ie mea ecsura.ble cnomic terms.ecor..omic terms.

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5. In regard5. to In the regardartent to 100 thewhioh extentih. toIaODII.ar.y whioh th.an.d IBOnetar.Teconomic and economic

autonomy of anautonolQ,YEEC region of an in Em "'. region l!J(U mq- in1.- -the]j)(tJpoaa1bU. mq- be-10he possibl., the

Irieh experienoeIrishQUl eXj)er1enceialao 1ile 6" can.L&l1JODedireotly IlIONrelevant directlyt relevant,

particu1arly particularlyif the probable if the development probablein development the in the

EBC i8.• devolutionEEC iB.à of devolutionthe present ofnational the present national

autonomies downwardsautonomies to downwards regions as to well.as regions upwardsas well as upwards

to Communityto insti Communitytutiona ~nsti7. Such tutions coneepb7.s Suchof concepts of

devolution asdevolutionsubsidiarityas subsidiarity would be oonaistent would be·with consistent with

reoent thoughtrecent about thoughtpublio aboutadministration public administrationon the means on the means

of avoiding monolithioof avoidingcentralism. monolithic centralism.I have already I have already

.suggested thatsuggestedbher-e is that urgent there need isfor urgentthe need EEC tö fordevise the EEC tö devise

a modern systema modernof pubiic system administration of public administrationwhich makes which makes

use of delegation,use of devolution delegation,and devolutionthe application and the of application of

the prinoiple thecf principle subsidiarity of subsidiarityit mcnolithic if stulti~ioatiou monolithic stultii'ica.tion

is ·1;0 be avoided.is -to beIn avoided. any ~vent,In after any event,a postwar a.fterdecade a postwar deoade

of near stagnation,of near due stagnation,largely to due the largely circumstanoos to the circumstances

described indesçribedparagraphin 3 aboveparagraph , Iraland3 a.bove, venturedIreland intoventured into

plannad "airtonomous"planned "autonomous".economic development economicwhioh development scon which soon

brought relativelybroughtrapid relativelyexpansion~ rapidan expansion, end of emigration, an end of emigration,

a reduotion ina reductionunemploymentin unemployment and to bhe flie;ht and toof thecapital flight of ~apital

(there haa,. in(therefaot. has,been in a fact, subatantialbeen a net substantialcalJiü.l nat ca~it~l

inflow) and e.inflow) mar-kedand irnpro'vement a. marked in improvementliving and in in living eocda I and in social

Btand~rdB generally8tand~rds • generally.

6. In the 1960's6. In Ireland the 1960's rejeoted Ireland the rejeoted idea and thepractice idea andof practice of isolationistisolationist protectionism. IJrotectionism.rt accepted theIt accepted faot thatthe a fa.ct that a small shelteredsmallhomashelteredmarket eould home marketnot provide couldemploymp.nt not provide employmp.nt

'-.

7. To complete7. the To complete pieture it thewou.ld picture be ~seful it would to be have useful to have al so a cIo ser-alsoLook a at closer the regiona.l look at thee.;·:r~denoeregionalof' e~.~r'€\i"ienoe of Federal Germa~.Federal Germa~.

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for its labour orforcapital. its labourthat oran capital.ability thatto compete an ability to compete

internutionallyintern.e.tionally was essential. wasThe essential.eccnond,o growth The eco;noD\io of growth of

the 1960' s was pr-omothe 1960'bed to s was a large promotedextent toby a largehaavy extent infra- by heavy infre.-

structural investmentstructural whLch investment had taken which p1ace hadin the taken1950. placee, in the 1950's.

Ln full recognitionofIn. full the recognition opennass of of thethe opennesseoonomy, of the the eoonom;y, the

objective was export-Iedobjective growth. was export-led In the growth. Irish experienoe In the Irish experienoe

the equilibratingthe moveIDents equilibratingof factors movementsooeur ofoutside factors occur outside

ascertainab1e Itmarginsascertainableof tolerance" "margins ." ofDespi tolerance". te a particularly Despite a particularly

oIose monetary interdependenoeolosé monetary interdependence with the U.K., a withdomestio the U.K., a domestio

interest rate patterninterestemerged rate pattern in Iroland emergedand the in 1rolandCentral and the Central

Bankof IrelandBank has been of Ireland able to has attain been a able certain to attain degree a of certain autonomy degree of autonomy

in credit policy.in creditAn independent policy.incoJIl6s An independentpol1oy is incomebeings polioy i s being

pur sued which. withoutpursuedbelng which,pe.rticularly without being suooessful, particularlyi8 successful, is

oertainly not lessoartainly so than not in lass other, so much thanmore in othar,autonomous muoh more autonomous

countries. countries.

7. What thd Irish7.experienoe What thè IrishBeElDlB experience'to suggest seemsia that to suggeston the is that on the

basis of' adaquatebasis axternal of adequate monatary external reserves monetary (net cnpital reserves (net capital

in.f'low into the inflowregion) intoit maythe beregion) possible it may - within be possible - within

quantif'iable marginaquantifiable of' tolerance margins a s of regard tolerance s incomeasB regardsand incomes and

owing to a scertainab1eowing to f'rictions ascertainable in oapi frictions tal movem.ents in capital - movements -

to attain EI. reasonableto attain degree a reasonabledegree of autonomous, plannedof autonomous, economic planned eoonomic

dovelopment (outsidedevelopmentthe straight-jaoket (outside the straight-jacket of' dependomo on of dependance on

external r~ctors)externalwhioh rNlY f~ctors)give the whichregion may givean adequatethe region an adequate

degree of salf-relianoedegree of to self-relianoe 'ta~e ofrl into to 'ta~e gustainable, off' into sustainable,

eommercially motivatedcommercially growth. motivated (In this growth. connexLon (In itthismiijhtconnexion it miGht

be useful to ccnsiderbe useful in someto consider detail thein some st~toment detailin thethe statement in the

:r4f'6r by IlB,:Clappic!'paper s.nd by la:Broulfert! Clappic?'that !:I.ndBrouwersI have quoted that a s I an have quoted as an

~~~'igre.phto this(Ji,igraph no+e}, to this nl,te).

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This means,Thishowevar, means,that however,the EEC,system that the EEC of public ,system of public

-/" , . , --" administrationadministration must be suoh mustasbe to suohdelegate as toto delegate to regions a re~sonableregions a re~sonableoapaoity to oapaoitydireot their to direct own their own ai'fairs withaffairsthe ability with the to ability%'Aise looally to raiseby locallytaxation by taxation trhe amountsthesUI>P1emanted amounts supplementedby"C0IllDl\.Ul1 ty byregional Community grants regional grants neceasary to:necessarysustatn to thesustai'n oultural,thesooia1 cultural,andeoonomio sooial andeconomio viab11ity ofviability the regions. of the regions.

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