The Press MONDAY, DECEMBER 30, 1957. Europe’s Common Market

Press, Volume XCVI, Issue 28472, 30 December 1957, Page 6

The Press MONDAY, DECEMBER 30, 1957. Europe’s Common Market

The European Common Market, which promises to be one of the most important post-war economic developments, comes into force on January 1. France, Germany, Italy, Belgium, Holland, and Luxembourg established a European Economic Community by treaty in March, 1957. In its simplest form, the Common Market—the term usually applied to the community would gradually establish a common external tariff wall round these countries, with free trade inside, the process taking 12 to 15 years. But the aim of the six countries goes far beyond the creation of a mere customs union. They seek a far-reaching form of economic integration. The treaty commit* them to common policies of * investment, employment, and social taxation. The institutional arrangements further express the “ community ” concept. A council and executive, legislative and judicial institutions, all following broadly the pattern set by the European Steel Community, would assume supranational authority over most j vital concerns of the individual nations. These are bold aims which no-one expects to see reached smoothly or unhindered. There are conflicts of interests among the Six—as the participating nations are called—that could be counted by the dozen. But, given a firm intention to co-operate—-of which there is no lack of evidence—the Common Market could do more than lay a foundation upon which Europe’s economy could make dramatic expansion; it could increase the political as well as the economic co-operation of the Six. Under the authorising treaty —the Rome Treaty—detailed rules for the creation of the customs union—the elimination of internal tariffs and quotas and the harmonising of the external tariff—have been set out. Movements will be made by stages. For instance, stage one (four to seven years) includes in the movement for the first year a 10 per cent, tariff reduction on each item inside the Common Market area, and at the end of the stage reduction of each item by not less than 25 per cent. Progress towards harmonising tariffs with the outside world necessitates laying down a Common Market tariff. This is to.be the average of the tariffs applied by member countries on January 1, 1957. Some variations (which are to be eliminated in time) are permitted but, generally, existing national tariffs are to be so adjusted as to differ by not more than 15 per cent, from the Common Market tariff after one year, and the Common Market tariff is to be applied at the end of the first

stage. Thg member States will begin to treat individual exchange policies as a matter of common interest, will inaugurate a common agricultural policy, create a social fund in order to improve the possibilities of employment for workers and to contribute to raising their standard of living, and establish an investment bank to facilitate the expansion of the Common Market through the creation of new resources. Naturally, Britain, as a European Power and as a world trading Power of first magnitude, is vitally concerned. Britain’s interest in European economic recovery and development has been actively expressed since the end of the war by its participation in the Organisation of European Economic Co-operation, embracing 17 countries (including the Six) with a population of 250,000,000, compared with the 160,000,000 population of the Six alone. Britain was unable to entertain proposals for joining the Common Market as a member accepting the responsibilities and obligations of the others. The chief of several reasons were probably, first, the Common Market with its supranational council and executive was seen by many British eyes as the thin end of a federation wedge; and, second, a common tariff would mean the end of Commonwealth preference. But to do nothing in the face of the Common Market would be equally impossible. Inl2o years’ time the Common Market might provide a “home” market of American proportions, and from such a “ home ” market a very strong export ' market would naturally develop. To quote merely one opinion about Britain’s self-interest in the Common Market: “It is not “ beyond the bounds of possi’“bility that in 20 or 30 years “ time a politico-economic “ European Federation, with “ Germany as its industrial “ heart, will outstrip the “United Kingdom, first in ex- “ porting power, then in wealth, “and finally in influence”. It would be wrong to see Britain’s attitude towards getting into Europe’s trade plans in some manner as merely a" case of Hobson’s choice. Britain’s attitude towards helping to expand free world trade is an enlightened one, and has been established to be so beyond any question. But it is . fair enough to say that the earnestness of the Six has jolted Britain into considering the Common Market from the viewpoint of British selfinterest, and has accelerated British ideas about co-operating with Europe. As a result, Britain became the chief sponsor of the European free trade idea.