The member states are facing the choice between either reaping the benefits of increasing integration in a certain area - in this case the capital markets - attended by a significant reduction in national powers of autonomous decision-making and independence, or retaining this national independence enabling them to pursue their own policy objectives with the aid of instruments selected at their discretion. To this question, there is no generally valid answer. The solution is determined by the weight assigned to the benefits, on the one hand, and that assigned to the reduction in national sovereignty, on the other. This, however, is a subjective matter, which is assessed differently in the various countries. OnnoRuding, 1969 1. 1 CAPITAL LffiERALIZATION AND MONETARY UNIFICATION In the 1980s Europe made a leap forward towards the liberalization of capital movements. EEC directives were accepted by all member states obliging them to abolish all remaining exchange controls. This common objective of freedom of capital movements has been consolidated in the Treaty on European Union. Nowadays virtually all restrictions have been lifted. This stands in striking contrast to the state of affairs only a decade ago, when many countries still operated a tight regime. Although the Treaty of Rome provided for the freedom of capital movements, this objective was circumscribed by the clause that such liberalization should only be carried through to the extent necessary to ensure the proper functioning of the Common Market.

Klappentext

This book provides a comprehensive overview of the process of capital liberalization in Europe from the time of the writing of the Treaty of Rome in the 1950s to the complete abolition of restrictions in the latter half of the 1980s and early 1990s in the run up to Economic and Monetary Union. The process is described mainly from an institutional angle, with special reference to the far-reaching discussions in the Monetary Committee and the role of the European Commission. Related topics such as monetary cooperation, the working of the European Monetary System, taxation and supervision issues are also dealt with. The book highlights the motives which countries held with respect to maintaining or abolishing restrictions. Their eventual abolition had important consequences for the financial structure in member states and for the transition to the use of indirect instruments of monetary policy by the national central banks. The book will be of outstanding interest for anyone who is professionally involved in European integration issues and in monetary and financial policy.

Inhalt

1. Introduction. 2. Capital restrictions: classification and general observations. 3. The Treaty of Rome and capital movements. 4. The role of the Monetary Committee. 5. The 1960s: lost momentum. 6. The 1970s: lost control. 7. The 1980s: liberalization and deregulation. 8. Towards the full liberalization of capital movements. 9. Towards Economic and Monetary Union. 10. Conclusion. Chronology of major measures with respect to the regime of capital movements in the member states of the European Community. Chronology of general events in Europe. Annexes. Literature. Index A: subjects. Index B: persons.