Main Economic Policy Areas of the EEC - Towards 1992: The Challenge to the Community’s Economic Policies when the ‘Real’ Common Market is Created by the End of 1992

172 Pages·1988·3.146 MB·English

by  Peter Coffey (auth.), Peter Coffey (eds.)

MAIN ECONOMIC POLICY AREAS OF THE EEC - TOWARDS 1992
INTERNATIONAL STUDIES IN ECONOMICS AND
ECONOMETRICS
Volume 20
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20. Coffey P: Main Economic Policy Areas of the EEC - Towards 1992. 1988.
Main Economic Policy
Areas of the EEC -
Towards 1992
The Challenge to the Community's Economic
Policies when the 'Real' Common Market is
Created by the End of 1992
edited by
Peter Coffey
Europa Institute, University of Amsterdam, The Netherlands
Second Revised Edition
KLUWER ACADEMIC PUBLISHERS
DORDRECHT / BOSTON / LONDON
Library of Congress Cataloging in Publication Data
Main economic policy areas of the ECC, towards 1992 the challenge to
the Community's economic policies when the "real" Common Market is
created by the end of 1992 / editor, Peter Coffey. -- 2nd rev. ed.
p. c~. -- (Internatlonal studles ln economics and
econometrlcs ; 20)
Includes index.
1. European Economic Community countries--Economic policy.
2. Agrlculture and state--European Economlc Community countries.
3. Industry and state--European Economlc Community countries.
4. Fiscal pol icy--European Economlc Community countries.
5. Regional planning--European Economic Communlty countrles.
6. Energy pcl icy--European Economic Communlty countrles.
7. Monetary poilcy--European Economlc Ccmmun11Y counTries.
I. Coffey. Peter. II. Series: International studles ln economlCS
and econometric; v. 20.
HC241.2.M2374 1988
338.94--dc19 87-38074
CIP
ISBN-13: 978-94-010-7125-3 e-ISBN-13: 978-94-009-1399-8
001: 10.1007/978-94-009-1399-8
Published by Kluwer Academic Publishers,
P.O. Box 17, 3300 AA Dordrecht, The Netherlands.
Kluwer Academic Publishers incorporates
the publishing programmes of
D. Reidel, Martinus Nijhoff, Dr W. Junk and MTP Press.
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In all other countries, sold and distributed
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All Rights Reserved
© 1988 by Kluwer Academic Publishers
Softcover reprint of the hardcover 1s t edition 1988
No part of the material protected by this copyright notice may be reproduced or
utilized in any form or by any means, electronic or mechanical
including photocopying, recording or by any information storage and
retrieval system, without written permission from the copyright owner
v
OTHER BOOKS BY PETER COFFEY
"European Monetary Integration" (with John R. Presley)
Macmillan, London, 1971.
"The Social Economy of France", Macmillan, London, 1973.
"The World Monetary Crisis", Macmillan, London and
St. Martin's Press, New York, 1974.
"The External Economic Relations of the EEC", Macmillan,
London and St. Martin's Press, New York, 1976.
"Europe and Money", Macmillan and St. Martin's Press,
New York, 1977.
"Economic Policies of the Common Market", Macmillan,
London and St. Martin's Press, New York, 1979.
"The Common Market and its International Economic
Policies", The Hague, 1982.
"The Main Economic Policy Areas of the EEC", (editor),
Martinus Nijhoff Publishers, Den Haag, 1983.
"The European Monetary System - Past, Present and
Future", Martinus Nijhoff Publishers, Dordrecht, 1984;
Second Edition, 1986.
"The European Economic Community and Mexico", (edited,
M.S.Wionczek (co-editor), Martinus Nijhoff Publishers,
1987.
"Towards a European Foreign Policy", edited, R.R.Lauwaars
and J.K.De Vree (joint editors). Martinus Nijhoff
Publishers, Dordrecht, 1987.
VII
Table of contents
Introduction IX
Acknowledgements XI
Notes about the Contributors XIII
Part One l'lonetary Policy 1
p.Coffey.
Part Two Agricultural Policy: 31
P.C.van den ~oort.
Part Three: Fiscal Policy: 53
W.Hahn.
Part Four Regional Policy: 67
W.Molle.
Part Five Energy Policy: 99
D.Hawdon.
Part Six Industrial and Competition Policy: 133
E.de Ghellinck.
Conclusions 159
Index 161
Supplementary Index of Tables 165
IX
Introduction
At the end of 1992, things will never again
be the same inside the European Economic Community
(EEC), because, as that year draws to a close, the
aims of the Single Act of European Union (SAEU),
which became law in July, this year, will have
become effective - thus creating a 'real' Common
Market. This will mean that there will no longer
be any obstacles to the free movement of goods
between the Member States. Equally, and for the
first time in the EEC's history, internal capital
movements will be absolutely free, there will no
longer be any exchange controls and it will be
possible to freely establish financial services
between EEC countries. Likewise, as currently
being proposed by Lord Cockfield, wide variations
in the levels of value added tax (VAT) between
Member States will not be allowed. Also, in the
case the Common Agricultural Policy (CAP), it
~f
will no longer be possible (nor even necessary)
to have the monetary compensatory amounts (MCA's).
All these changes - but especially the increased
freedom in capital movements - will have profound
consequences for the different regions of the
Community and it will be desirable to have a
much more dynamic Regional Policy before 1993.
Last, but by no means least, a greater number
of decisions inside the Community will be made
by majority voting and the Parliament will be
endowed with enhanced powers.
In turn, all these changes should give a
greater degree of strength and dynamism to the
already successful European Monetary System
(EMS) and increase the urgency of creating a
'real' European Fund for Monetary Co-operation
or a European Central Bank.
The fact that the EEC, will by 1993, have
become the world's greatest internal market
x
will make it commercially even more attractive
than it is at the present time and will increase
its negotiating power internationally.
The Single Act of European Union is a most
exciting challenge to the Community. It means
that the most profound changes will have to take
place in the main economic policy areas of the
EEC. In the interests of the welfare of its
citizens, it is imperative that thinking about
policy changes and their implications should
start as soon as possible. Therefore, using as
a point of departure, an earlier work*, the
editor invited colleagues** to completely re
think and re-write their work in the framework
of the SAEU and the Community's position after
1992. Thus we hope that this book will stimulate
new thinking about the Community's Main Economic
Policy Areas as they will look from 1993 and
thereafter.
Amsterdam, September 1987.
* "Main Economic Policy Areas of the EEC"
Nijhoff. Den Haag, 1983.
** Since the publication of our earlier work,
we have been deeply distressed to hear of
the unexpected death of our friend and col
league, Professor Alan R. Prest, of the
London School of Economics. We wish to place
on record our great esteem for the kind help
and advice which Professor Prest was always
willing to give us.
XI
ACKNOWLEDGEMENTS
The editor wishes to thank Mr. Ben Kotmans, of the
Europa Instituut, who has typed part of this work.
Likewise, thanks are due to Mr. Geert v.d. Klis,
a student assistant at the same Institute, who has
prepared the index for this book.