Economics of the common market

On 25 March 1957 the governments of France, West Germany, Italy, the Netherlands, Belgium and Luxembourg signed the Rome Treaty. In so doing they agreed to create what is now known as the Common Market, or, more accurately, the European Economic Com munity. The latter title indicates that the arrangement is an economic one although, of course, the political aspect is also of the highest im portance. This statement is not likely to give rise to any dispute. A former President of the European Economic Community Commis sion, Dr Walter Hallstein, once said: 'We are not in business at all; we are in politics. The political nature of the Community is evi denced by the fact that it has political organs such as the European Parliament and the Council of Ministers. The latter makes binding decisions on matters which were formerly a national prerogative, as in the case of agricultural policy. Moreover, although the Community is primarily concerned with economic integration, the ultimate aim of those who have been in the vanguard of the 'European movement' has always been that close economic ties would eventually lead to political unity.

However, the main burden of this book will be related to the eco nomic aspect of Community policy. This should not be taken as a further indication of the British preoccupation with the economic, as opposed to the political, nature of the 'European movement'. Rather, it is a consequence of the need to achieve some specialization in the analysis of Community policy.

As the title emphasizes, the focus of attention in this book is the European Economic Community. The more important aspects of policy in the European Coal and Steel Community are also discussed. Euratom is dealt with, although only in passing.