The Analysis On The Courses Of The EC's Monetary Integration In 1970s

The economic integration is the first step of the movement of the Europeanintegration. Furthermore, the monetary integration is a indispensable section ofthe economic integration. The European Economic Community is differentfrom the Free Trade Region, and its building indicates the necessity of themonetary integration. After all kinds of factors of the monetary integration hadoccurred in the final phase of 1960s, the European Community began theexplorative process of the monetary integration.The first chapter try to analyze completely the reason of the occurrence ofthe monetary integration.Historical source , the monetary integration has identical and conditionwith the economic integration, that is the regional economy of Western Europeformed from industrial revolution and production socialization before warⅠ,that is to say the economic circle of Western Europe. It's form for thebeginning and realization of European national integration sport have offeredeconomy foundation and historical possibility.Realistic foundation, first, the practice and reality of Postwar Europeanintegration sport for more than ten years, that make Europe have got a state ofrunning-in and a nature state in the practice.Second, the step down of De Gaulle has offered good political conditionfor the monetary integration.Thirdly, in the late 1960s,the changes of EC's internal economic situationis the most far-reaching propulsion. According to the relation of economyintegration and monetary integration, the function embodies in two aspects:The needs of economic integration is corresponding higher level monetaryintegration. In the end 60s, because of the basic realization of the Treaty ofRome, the establishment of the Tariff Alliance and the Common AgriculturalPolicy, the permeability and reliability of the economy of member countries getfurther strong, it is the motive force of new economic integration. TheCommunity Accomplishment, the increase of body countries trading businessvolume, the raising of productivity and the recovery of world influence, makeEuropean integration have irreversible nature. Then, member countrieseconomy inter-dependent deepen, Tariff Alliance further perfect, CommonAgricultural Policy further carry out, all need internal monetary integration topromote.The other aspect, the propulsion and achievement have offered materialconditions and base for the foundation of the monetary union.Exterior factor, the changes of EC's exterior economic and financialcircumstance strengthened the urgency for building Economic and MonetaryUnion. The collapse of the Bretton Woods System and continuous dollar crisesmade EC forfeit stable economic and monetary environment. The change not onlydisadvantaged the development and deepening of EC's interior economy, but alsodid harm to the acquired achievements of EC. EC integration lacked the practice ofmonetary integration in its history. EC needs building independent and stablemonetary region to oppose the hegemonic status of dollar.The second chapter try to completely analyze the first attempt of ECmonetary integration. The Werner Plan is the first practical attempt of EC inrealizable way of monetary integration. The purpose of the plan is to buildeconomy and monetary union, and it made an effort to stabilize members'exchange rate and improve monetary integration. However, the plan is failed ingeneral. The plan was stagnant when it transited the second period. The failureof the plan was result from two sides of interior and exterior factors of EC.On one hand, the continuous economic crises destroyed seriously thesurroundings of building economic and monetary union and interrupted quicklythe first effort of EC.On the other hand, the political desire of members for monetarycooperation was affected by exterior unstable economic situation. What's more,the immaturity of EC interior operational mechanism could not offer a stronginstitutional and systematic safeguard. The drafting and execution courses ofthe plan embodied apparently this shortcoming. The plan could be passed by themeans of considering various contradictions, then it has prudent, compromiseand do not make clear nature at the very start; In the execution time, eachmember country could not take joint action in facing common difficulties . Thismatter exposed that EC not only lack the experience of monetary cooperation,but also has imperfect political machinery and operational mechanism .First try of the monetary integration has failed, however the internal andexternal requirement still has its realistic existent condition. The effort ofestablishing currency cooperate organization still continue. In the late 1970s,Community inside has appeared again relative favorable economic and politicalconditions of promoting monetary integration, and them have facilitated thefoundation of the European Monetary System. This problem needs the thirdchapter to solve.European currency still receives the impact of U.S. dollar crises, andCommunity internal economy remains to pick up. Furthermore, Common Marketasks to deepen further. All those conditions have decided the certainty ofestablishing currency cooperate organization. Since 1976, EC appeared newsituation, and that to be the conditions of the setting up the European MonetarySystem.Economic aspect, in the end 1970s, member countries improved graduallytheir economic conditions, and that made each member country have increasedthe confidence of founding currency district.The political aspect, firstly, the power organization of EC arisen newstrength ——the establishment of the European Council, and it is the highestdecision organization. This mechanism has established organization foundationof further shifting sovereignty, and made integration begin again on moredependable foundation.The promotion of the two countries, Germany and France. As leadingcountries of integration, the two countries get deeply in the effect of the westerneconomic and monetary crisis. The new leaders of the two countries came topower, and they promoted the process of the monetary integration construction.The construction of EC monetary integration got along with a practical andreliable means in drawing the failed lesson of Werner Plan. At last, theEuropean Monetary System, as a new way of monetary cooperation, founded inMarch,1979. This kind of the way of realizing currency cooperation is effective,and that point has been proved by practice. Through the development of near 20years, EC established eventually the single currency and realized the goal ofmonetary integration construction.Decadal continuous construction courses of monetary integration has also...