Britain within the European Community: The Way Forward by A. M. El-Agraa

By A. M. El-Agraa

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Launched in 1979, the European Monetary System (EMS) brought the currencies of all the members except Britain into a new exchange rate mechanism, which has reduced short-term fluctuations among them without preventing changes of parity, and laid plans for a second stage in which a fifth of the member countries' reserves would be placed in a common Reserve Fund. This could be a very substantial instrument of Community monetary and currency policy. But the governments have not yet agreed that the time is ripe to establish it; so the EMS remains another, though more successful, modest exchange rate mechanism, with some other fairly modest monetary instruments related to the European Currency Unit.

In 1975, however, the Amending Treaty strengthened the Parliament's powers to amend and modify the budget, and gave it a power to reject the budget as a whole. While it still lacks power over Community legislation, and while most of the Community's expenditure, termed 'compulsory' in that it has been decided by the ministerial Council under its Treaty powers, effectively escapes the Parliament's control, the Parliament now has significant power over the budget. These distinct advances in the position of the Parliament, however, do not negate the general impression that the Community has spent the 1970s in the doldrums.

U .. , ... " .. ........ .. ;~ ...... t:".!... ' 1 Two years later, at the inaugural session of the High Authority of the European Coal and Steel Community of which he was the first President, Jean Monnet developed this theme: "According to the methods of the past, even when the European States have been convinced of the necessity of a common action, even when they have set up an international organisation, they have kept their full sovereignty. Thus the international organisation can neither decide, nor execute, but only address recommendations to the States • • • Today, on the contrary, six Parliaments have decided, after mature deliberation and by massive majorities, to create the first European Community which merges a part of the national sovereignties and submits them to the common interest.

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