E.E.C. a long way from unity

Press, Volume CXII, Issue 33110, 28 December 1972, Page 2

E.E.C. a long way from unity

/.V Z.P A-Reut er—Copyright) BRUSSELS. Dec. 27. The world’s biggest trading bloc — the mightiest economic power after the United States and the third most populous entity after China and India—will come into being on January 1 with the enlargement of the Common Market.

The increase in membership from six countries to nine is expected to give the Community’s 253 million inhabitants — already among ■the richest peoples in the I world —a fresh economic market for their industries. British leaders particularly are looking to entry to the European Economic Community as . ticket tc greater prosperity and a permanent way out of their country’s protracted post-war stagnation. TRADE SHARE But statistics paint an oversimplified picture. Such figures as the share of world trade—4l per cent —or the gross domestic product—sslo.ooom a year—give a

.false impression of a unified i economic colossus. j They gloss over the fact' ’that, in spite of some highly: distinctive institutions which! could provide the basis fori a future European govern-' ment, the Common Market! ion January 1 will still re’main a trading association of; nine separate countries. , Only the years and decades . ahead will tell whether this! date marked the birth of a| new superpower or that of a vast technocratic, inter-! governmental organisation. They will show whether ! I the E.E.C. can outgrow its! ! image of a “Europe of tradesmen” and advance towards, genuine economic and political integration to become something like a United States of Europe. Enlargement, by bringing Britain into the Community,] makes such a process possible in the sense that no European political union is possible without British participation. But the increase in E.E.C. membership from six to nine with the addition of Britain, Denmark and Ireland provides no solutions in itself. The Common Market’s leaders have left their choice! open on the nature of the: enlarged Community. ECONOMIC UNION Although last October’s European summit made a

commitment to bring about a “European union” by the end of the decade, it does not take a political analyst i to spot that this phrase can cover any degree of integration from that of the European Postal Union to that of I the Soviet Union. More important was the ‘summit’s solemn commitment' | to 1980, as the date for com-; Ipleting the moves of the Nine! 'towards full economic and ;monetary union. European federalists see this process as the driving force for the achievement of their political goal. For it is, clear that there can be no real economic integration without a corresponding; merging of political powers, and no single European currency without a European, ; treasury. Unfortunately for such ambitions. experience has shown that Europe’s leaders are more free with their words than their cash or their! sovereign powers. PLAN MODIFIED j The two years since a modified plan for economic, and monetary union was put into practice have provided more setbacks than real} achievements. For the scheme: first had to be shelved, then re-drafted, in the face of succeeding international! monetary crises. j

Moreover, a wide body of i economic opinion believes that economic and monetary union among the nine is! doomed to failure. They say! that immense resources i would be needed to redress regional imbalances, to make' the plan workable. As for political union, the immediate years ahead ap-_ pear unlikely to bring about, any drastic change in the present pattern of co-opera-; tion through regular meetings ' on foreign policy. A dormant quarrel between France and her partners over the siting of a political secretariat —in Paris or Brussels—continues to block political co-operation. TEST OF UNITY In foreign relations, the results so far have been meagre—co-ordination of positions in the United Nations, and more or less simultaneous recognition of Bangladesh. The acid test of Common Market unity will be the two major international rounds of negotiations next year—the European security talks in Helsinki and the world-wide! trade talks in Geneva in the. spring. The next three years will; be a time of transition for: the Common Market, while the nine members of the en-> larged Community learn to,

work together and to put into practice the broad programme formulated at the Paris summit. Detailed plans will have to be drawn up and implemented on a whole range of economic issues, including regional, industrial and social policy and the environment. On the institutional front, the main question will be the reinforcement of the powers; of the Community’s’ Euro-' pean Parliament. Decisions on this score must be taken bv the end of' 1973. Apart from giving the Par- i liament a bigger say in how the Community is run. the! main effect of such measures! will be to reinforce the en-l larged Community as a commercial entity. The object of industrial! policy is to provide the Com-' mon Market with a single industrial basis. Similarly, the aim of a; successful regional policy would be to make the Com-! munity a more homogeneous; market. DECISIONS IN 1976 Beyond this, the real de-: cisions on the future nature : and shape of the Community} must wait until 1976, when, leaders of the Nine at a new} summit meeting will have to determine what they mean by, and what they expect: from, a European union.