COMMON MARKET Fresh move towards monetary union

Press, Volume CXII, Issue 32861, 9 March 1972, Page 15

COMMON MARKET Fresh move towards monetary union

(N.Z.P.A.-Reuter—Copyright) BRUSSELS, March 8. The Common Market was today launched on its path towards monetary and economic union after being held up for 10 months by the world monetary crisis.

The Finance Ministers of the Six, at a two-day session which ended last night, agreed to halve the fluctuation margins between their currencies. Under the December realignment of world curren-

cies, the E.E.C. currencies could move against each other within a 4.5 per cent spread; this will be reduced to 2.25 per cent by July 1 at the latest.

The Prime Minister of Luxemburg (Mr Werner) who is the present chairman of the E.E.C. Council of Ministers, said that the Finance Ministers had shown their political will and determination to move towards economic and monetary union; Dr Karl Schiller, of West Germany, spoke of great progress in the monetary sector. The decision may prove the basis of a monetary bloc encompassing most of Western Europe. The Common Market candidate countries — Britain,

Ireland, Norway and Denmark—will be advised on the outcome of this week’s discussions, and are expected to join the scheme from the beginning. In addition, some outside countries, such as Switzerland and Sweden, have shown interest in the margin-narrow-ing operation, and may well cut their margins against E.E.C. currencies to 2.25 per cent.

Last night’s agreement has still to be approved at a special Council of Ministers session on March 20 and 21. All E.E.C. decisions must be submitted to the candi-date-countries before formal adoption, under an interim agreement.