By Robin Leigh-Pemberton
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Accountancy Age Occasional Paper 81 48 pp. )~~~ COMPETING VISIONS FOR 1992 A 'Great Debate' is raging on the future of the European Community. Has the EC become a corporatist and over-centralised political Leviathan controlled by an unaccountable bureaucracy in Brussels 7 Or, are the harmonisation directives and proposals for a European Monetary Union, a common currency, a European central bank. and the infamous Social Charter pre-requisites for the Single Market 7 The Treaty of Rome was once described as 'the triumph of the economics of Adam Smith'.
It is hard to believe that the gains from the common money are not significant, whereas provided inflation is low (0-4 per cent, say), the costs may not be of any great consequence. So a reformed EMS is something that even with these structural problems we could reasonably join once our present inflationary excesses have been curbed. Conclusions There is plenty in the Governor's lecture with which to quibble. Regional policy is not necessary as part of EMU. Nor is fiscal coordination. But where it matters - on policy - the Governor's judgements are correct.
LONDON SW1 P 3LB TELEPHONE 01-7993745 THE INSTITUTE OF ECONOMIC AFFAIRS NOW IN 2ND IMPRESSION 1992: EUROPE'S LAST CHANCE? FROM COMMON MARKET TO SINGLE MARKET Victoria Curzon Price Professor of Economics, University of Geneva • Does the Single Market involve a transfer of sovereignty to market forces or to Brussels? • Will the Single Market allow national differences to flourish or to perish? • Will the Single European Act encourage decentralisation or concentration of economic power? • Can it be argued that the Single Market will be a pure exercise in deregulation, a 'fantastic dream'?