WEEKLY SUPPLEMENT /

*** JEAN-VICTOR LOUIS, HAJO BRONKHORST (under the direction of): The Euro and European Integration - L'euro et l'integration européenne. Presses Interuniversitaires Européennes-Peter Lang (63 rue des Cottages, B-1180 Brussels. Tel: [phone] - Fax: [phone] - E-mail: [e-mail]). Collection "European Policy - La Cité européenne". ISBN 90-5201-912-6.

This collective publication brings together eighteen authors who, for the most part, are part of the network of experts from the Euro Institute Presided over by Frans Andriessen. The former Vice-President of the European Commission explains, in his preface, that the subjects covered "illustrate the importance of the stakes, for Europe, but also for the rest of the planet, the advent of an international currency have the vocation of rapidly becoming the world second currency." Also to assert: "nothing remain will be quite like it was"… It is true and the book is testament to it. Starting with Jean-Victor Louis who begins his introduction by recalling that the Delors Committee, in 1989, qualified the coming economic and monetary union as "final stage in the European process of economic integration." Prof. Louis confirms this (Free University of Brussels and European Institute of Florence) eleven years later: "what additional progress can we conceive compared to the single currency? The stage of integration is exceeded step by step. The situation contains a qualitative change." However, he continues, a single currency is not an end in itself, but "an instrument for the citizen and public powers to that should be used properly." It is in this direction that the authors move.

The second co-ordinator of this publication, the lawyer Hajo Bronkhorst pens a general introduction in which he gives a detailed insight into the workings of monetary union and the role of the Euro, which, notably leads to him reminding the reader how much the Maastricht Treaty is characterised by an asymmetry between the powers transferred to the Community at a monetary policy level and the reduced responsibilities of the Community institutions in terms of economic policies. "The -inevitable and indispensable - emergence of an informal group responsible for the strengthening of co-ordination between participating states in the single currency - the Euro 11 - only further underlines the weakness of the mechanism," commented Prof. Louis. He then asserts that the shortcomings denounced at this level by the European Parliament (resolution of 11 February 1999) should be on the IGC agenda "if we are convinced of the need for the co-ordination of these policies with other macro-economic policies and these with monetary policy."

On this basis, the book divides itself into three main parts. The first is dedicated to the "tool of change" that is the Euro. Thus Fabienne Ilzkovitz and Adriaan Dierx (both from the Commission's DG Economy and Finance) explain that the introduction of the single currency should create a true European market and, for companies, increase the pressures of competition within the single market. Patrice de Lapasse (Bank of France) then describes the effect the Euro will have on the continuity of contracts, while the legal expert Francois-Olivier Manson studies its liberating power and Pieter Dekker does the same for the practical consequences in terms of accounting and auditing. Titled "An institutional system," the second part first sees Prof. Franco Bruni (Bocconi University of Milan) explore the theme of the independence of the European Central Bank and notably explains that the ban made by the Treaty against trying to influence its members is no different to that applying to the Commission. "The banned interventions are the specific pressures brought to bear on the institution or its members by means that exceed acceptable criticism - and profitability - in the political debate," comments Prof. Louis while also sharing the positive opinion held by Prof. Bruni on the policy of transparency followed by the ECB. Though, Prof. Louis observes that the democratic legitimacy of the ECB and the ESCB is also subject to caution. Dr. Rosa Maria Lastra (London University) then studies the sharing out of competencies between the ECB and the national central banks within the ESCB, mainly showing that the principle of national competence is that which prevails in the exercise of exchange policy, this also being true for prudential control and crisis management. These last two themes are the subject of a specific contribution by Prof. Michel Aglietta (University Paris X Nanterre). The third part of the book is devoted to macro-economic policies. Prof. Gerhard Michael Ambrosi (University of Trier) sets things rolling by defending the use of expansion policy at Union level (in his view, the adverse effects of attempts at national recovery will not be noticeable with coordinated expansion). Then come Prof. Iain Begg and Prof. Jeremy Landor (South Bank University of London), who take a vigorous stance in favour of a social Europe, which, they state, will be the key to the euro's long-term success. Prof. Jean-Louis Besson (Université Pierre Mendès France, Grenoble) then sets to demonstrating that the limited nature of tax harmonisation is not a factor of policy divergence. Eduar Hochreiter (National Bank of Austria) continues to take an interest in the medium-term effect disinflation has on the budget and the public debt, while Marie Wolkers (Euro Institute) considers the regional impact of single currency. Finally, the last part covers the "euro and the world", with Jean-Pierre Allegret and Bernard Courbis (Université Lumière Lyon 2) mainly focusing their remarks on the potential contribution to be made by the single currency in restructuring the international monetary system.

Michel Theys

*** MICHEL DEVOLUY: La Banque Centrale Européenne. Presses universitaires de France (108 blvd Saint Germain, F-75006 Paris). "Que sais-je" series 2000. ISBN 2-13-050621-6.

Michel Dévoluy, Professor of Economic Science and Director of the Institut des Hautes Etudes Européennes at the Robert Schuman University in Strasbourg (and author of "L'Europe monétaire: du SME à la monnaie unique" published by Hachette in 1998), describes the beginnings of the European Central bank, "a singular institution that is complex and disturbing" since it is not only a central bank but also a "supranational institution". He goes on to note, however, that the ECB already exists while the European Union is "still far from political integration". "Everything is happening as if the euro and the ECB can only be accepted by the European Union States by ousting from politics the conduct of monetary affairs", he remarks, stressing that the independence of the Bank does not, however, mean full freedom in the choice of aims.

Respecting the imperative "concise as well as precise" which is a feature of the "Que sais-je" collection, Professor Dévoluy explains in a very readable way the stages leading up to single currency, ESCB architecture, monetary policy and the other ECB tasks. His conclusion is that the Bank's performances regarding price stability are "impressive". The Bank's contract set out in the Treaty has "therefore been fulfilled", he considers, although he does admit that the debate was insufficient for two reasons: the place of monetary policy in the conduct of economic policy and the role of the euro in the world. Returning to his original ideas, he sees a fundamental reason underpinning this, the "weakness of the political union". At the same time, he predicts that, as political integration moves forward, the question of a "unified economic government" will become a major challenge (Although the author could not see how things would shape up when writing the book, could the extraordinary summit of Lisbon give signs along these lines?) This "government" will be made to "define its sphere of competence" and the process of consolidation of European identity will finally also depend upon "reinvestment of the policy in the monetary field", concluded Prof. Dévoloy. (MG)

*** PETER BOFINGER: Options for the Exchange Rate Management of the ECB. Directorate General of Studies of the European Parliament (Economic Affairs Division. Tel.: [phone], Fax: 27721. Distribution: EP Official Publications Office, L-2985 Luxembourg). Series "Economic Affairs". 1999, 34 pages, 7 euros. ISBN 92-823-1311-5.

In this discussion paper (which therefore does not commit the European Parliament), Peter Bofinger, from Bayerische Julius-Maximilians-Universität in Würzburg, above all analyses the question of whether the European Central Bank should be able to try to limit a euro-dollar exchange rate above $1.20 (for now, we are far from this, which does not mean that the question is not of interest) by publicly announcing the fixing of a ceiling for this rate. This specialised study is based on the fact that the ECB initially (and this remains partially true) granted scarce attention to the exchange rate policy, and that there is still no conceptual preparation of this kind of problem. The author notes that the policy does not come under the ECB's responsibility alone, and that a framework for joint reflection is therefore needed to prevent all conflict between the Council and the ECB in the event of monetary crisis. (MT)

*** PAUL DE GRAUWE: Economie de l'intégration monétaire. De Boeck Université (Distribution: Accès+, 4 Fond Jean-Pâques, B-1348 Louvain-la-Neuve. Tel.: [phone] - fax: 482519 - E-mail: [e-mail]). Collection "Ouvertures économiques/Balises". 1999, 240 p., BEF 890. ISBN 2-7445-0062-3.

This French version - from the pen of Marie Donnay, of the Katholieke Universiteit Leuven - from the third English edition (the first was published in 1992) of the work of an eminent specialist in monetary affairs of the aforementioned university is interesting in that it explains the intellectual developments that have been imposed by monetary progress since the Maastricht Treaty. As Prof. De Grauwe says himself in his foreword, much water has flowed under Europe's bridge (of eleven of its members in any case…) since the book was first published, which came at a time when the of the signatures of Maastricht were still drying: "At the time, economists were skeptical as to the advantages of Monetary Union and regarding the realism of the transition programme towards that Union. Gradually, this dual skepticism evaporated"…It can but be said that the author confronts his theoretical reflection, stamped with the prevailing doubt at the time as to the relevance of the action being envisaged, with the reality of a construction which, although chaotic at the time, has led today - nobody can doubt this, that would be difficult - to the birth of a new and common currency. "Of course, future challenges remain considerable, but optimism is the order of the day", Paul De Grauwe acknowledges soberly and candidly.

In the first part, the author discerns the "costs and benefits of Monetary Union" in the light of the theory of optimal monetary areas to which he now provides "important nuances", without, however, placing it totally back into question. The fact is, he then explains, that although the costs of a single currency are mainly macroeconomic, its benefits are, for their part, more microeconomic, which, in the euro zone, should lead to greater economic efficiency due to the elimination of the costs of transactions and the removal of the risk of exchange rate fluctuations. All things that will "certainly improve wellbeing, although this effect is impossible to quantify". At the end of a comparison of costs and benefits, the author reaches the conclusion that Europe is not very likely to constitute an optimal monetary area in its totality, thus "monetary unification would better correspond to the interest of each were it to be achieved at several speeds" (which is the case…). But he also considers that the number of countries that may join Monetary Union "is probably greater than what economists believed a few years ago" and that, in the long-term, it will "appear more attractive for most if not all the countries of the euro". But beware: even those countries that are the main beneficiaries run risks by joining up. There is, therefore, according to the author, reluctance. He does, however, acknowledge that the countries of the euro zone may also decide to adopt a single currency for political reasons: "Monetary Union may be the first step in the direction of a political union, ultimate goal", he writes, claiming that, whence, the cost/benefit analysis remains "useful as it provides an idea of the price to pay to reach these political goals". The second part is devoted to different aspects of the ongoing monetary integration, from the European Monetary System to the setting up of the European Central Bank and its monetary policy, passing through the current problems of transition. The book of a skeptical but honest expert. (MT)

*** ROSALIND GREENSTEIN (under the direction of): Regards linguistiques et culturels sur l'euro. L'Harmattan (5-7 rue de l'Ecole-Polytechnique, F-75005 Paris. Tel.: [phone] - fax: [phone] - E-mail: [e-mail]). 1999, 171 p., FF 95. ISBN 2-7384-8317-6.

What did, what does the national currency mean in Member States that opted for the euro? What is the symbolic role of currency in the construction of national identity? What role does language play both in the construction of national identity (and, now, supranational..) and the current process towards the single currency? Those are some questions to which language lecturers-researchers at the Universities of Paris 1 and 2, working in the framework of Cerlac (Centre de Recherche en Langue de Specialite et Culture), provide answers in this small but intriguing book. The first two studies concern the symbolism of money, one setting out from the relationship the Spanish forged with their currency (ies), the other turning to the abandonment of the D Mark, Germany's symbol of identity. The two following studies, for their part, turn to the role language has played in the construction of the euro, especially in the light of the "attributes of the euro in the Anglo-Saxon press". The last contribution is provided by Pierre Giraud who demonstrates that the presentation of the euro in Germany constitutes a "revealing but reductive mirror of the codes of economic culture". It clarifies the deep motivations of attitudes and words that led German leaders to impose a very clear German stamp on the single currency, from their rejection of the name "ecu" to their demand that the convergence criteria be strictly applied, passing through a form of bundesbankisation of the European Central Bank. (MT)

*** The EUROPEAN ENVIRONMENT AGENCY has published the following reports, distributed by the sales network of the EC's Office for Official Publications (Luxembourg):

- Nutrients in European ecosystems. Environmental assessment report n° 4. 1999, 155 p., 12 euros. ISBN 92-9167-163-0. This report provides a general idea of the adverse effects of anthropogenic inputs of nutrients in European ecosystems and provides an overview of their geographic distribution. It is based on the results of a questionnaire drawn up for the requirements of an enquiry undertaken jointly by several European environmental institutions and in which no less than 42 European countries took part. The report is composed of eight chapters, explaining what the nutrients are, where they come from, what dangers they constitute, what their impact is on lakes, reservoirs, rivers and coastal waters, how they threaten terrestrial ecosystems and what the preventative measures are to that effect.

- State and pressures of the marine and coastal Mediterranean environment. Environmental assessment series n° 5. 1999, 137 p., 9 euros. ISBN 92-9167-164-9. This survey provides information on the state of marine life and the coastal areas of the Mediterranean Sea. Following a description of the environmental characteristics of the Mediterranean area, it assesses the impact of human activities in this area, notably the repercussions of the rapid urbanisation of the coastal areas due to the intensive development of tourism. Finally, the report concludes with a short description of action plans that currently exist to protect this environment.

- Information tools for environmental policy under conditions of complexity. Environmental issues series n° 9, 34 p., 7 euros. ISBN 92-9167-182-7. Given the mass of different subjects included in environmental policy as a whole and their inter-connection, specialists often have difficulty in establishing basic principles and strict management instruments, says the European Environment Agency. This technical report tries to provide elements of answers to this state of affairs by analysing different angles of the problem.

*** EUROPEAN COMMISSION: The Planet under pressure. Solutions to environmental problems. Brochure published by the DG for Research in the European Commission and distributed by the EC's Office for Official Publications (Luxembourg).

This brochure, designed in the form of a fold-out, turns briefly to fundamental environmental challenges (greenhouse effect, warming of the planet, climate change, air and underwater pollution) and European measures developed to tackle them, notably through research projects financed by the European Commission.

*** EUROPEAN COMMISSION: Energy in Europe. 1999 - Annual energy review. Published by the European Commission DG XVII and distributed by the sales network of the EC's Office for official publications (Luxembourg). Special issue, January 2000, 220 p., 23 euros. ISBN 92-828-7448-6. Contains a Cd-Rom.

The publication turns to the energy situation in the world in 1999. It first provides an overview before considering each region in turn: European Union, other OECD countries, Central and Eastern Europe, the Community of Independent States, Africa, the Middle East, Asia, Latin America. A short-term energy outlook for the EU concludes this report. The Cd-Rom includes additional data on 127 countries in the world.

*** Electricity from renewables: further documents. House of Lords, Select Committee on the European Union (Publications centre: PO Box 276, London SW8 5DT, UK. Tel.: [phone] - fax: [phone] - E-mail: [e-mail]). Session 1999-2000, HL Paper 18, 42 p., £8.60.

This House of Lords report examines the possibilities of using renewable energies in the EU, based on official European documentation.

*** Futuribles. 55 rue de Varenne, F-75341 Paris cedex 07 - tel.: [phone] - fax: [phone] - E-mail: [e-mail] - Internet: http://www.futuribles.com. N° 251, March 2000, 104 p.. Annual subscription: 105,19 euros (France) or 112,81 euros (other countries).

This issue comprises an article entitled "Technosphere vs ecosphere: technological choices and environmental threats: weak signals, controversies and decisions". This article analyses several recent controversies raised by actual or potential environmental threats, linked to technological choices made more or less democratically (mad cow, ozone layer, GMOs, etc.). It demonstrates which precursor signals could have been taken into consideration.