Proposals To Establish Nordic Economic Union

Press, Volume CVIII, Issue 31782, 12 September 1968, Page 5

Proposals To Establish Nordic Economic Union

(N.Z.P.A.-Reuter) OSLO. The Governments of Norway, Sweden, Denmark and Finland are working on proposals for a Nordic economic union, which would mean the biggest single step yet towards unifying the peoples of northern Europe. If adopted, the proposals—expected to be completed by next January—would give these countries a customs union, a common agricultural and fishery market, a Nordic investment fund, joint projects in science and research, and joint business laws. The Nordic countries already co-operate closely in many fields, though not in matters of defence and national security. Efforts over the years to increase economic co-operation have repeatedly failed in spite of successful working together in international trade organisations. Study Group At a summit meeting in Copenhagen last April, the Nordic Premiers, Foreign and Trade Ministers decided to establish a number of com-

missions to study and make recommendations about specific fields concerning the union. The commissions have already met and early next year the Nordic Premiers will discuss and take a decision on the basis of their proposals. Norway is generally thought to hold the key to the establishment of the union. Views expressed at the Copenhagen meeting were that Norway could not consume Denmark’s farm pro- ■ ducts or Sweden’s industrial 1 goods. At the same time, the : Danes and the Swedes could i not help Norway by buying 1 fish or using the Norwegian c Merchant Fleet. i, Norwegian View Norwegian political sources • assess the present situation 1 as follows: j Denmark, with her big agris cultural production, is in e a difficult position bep cause of reduced outlets « to her traditional marr kets in the European i_ Economic Community. As an interim solution, Denmark hopes to be the “food shop” of the 1 union. e Danish fishermen in most d 1 cases offering lower o I prices than Norwegian H fishermen are not likely

I to accept a Nordic fishery t policy including joint ! prices for fish and fish products. t Sweden’s motivations for i entry into the union are political as well as eco- • nomic. Sweden fears isolation from Europe and r the West and hopes that i a Nordic union would ■ bind the countries to a common European policy, • making it possible for • Sweden to prevent a drift into isolation. • Finland favours the union but some 20,000 Finnish ■ farmers may have to leave their farms because • of competition from the 1 Danes. Finland would benefit, however, from a Nordic investment fund and free capital move- ’ ment to ensure indus1 trial expansion. Political sources in Oslo ' say that a Nordic common 1 market would cost Norway ' about s4om with little to off- ’ set this loss. Norway’s two " main problems are the agricul- : tural and fishing industries. s A common market in fish ’ would mean next to nothing , to her huge fishing industry. " Agriculture is heavily subsidised and a common agricult tural policy would mean a r death blow to thousands of i farms unless special arrangey ment were made.