*** Revue des Affaires européennes - Law & European Affairs. Alain Mys publishing house (12 Graslei, B-9000 Ghent. Tel: (32-9) 2236471 - Fax: 2231364). 2001-2002, No 2, 123 pp., 85 euros. Annual subscription 295 euros. ISBN 90-5462-453-1.
Renowned for its clear, constantly high editorial standards, this issue of the Revue des Affaires Européennes contains a range of illuminating articles on an unusual and unprecedented historical event, namely the decision by twelve sovereign states to replace their national currency, of their own free will and after long consideration, by a common currency, the euro. In the introduction, Pascal Kauffmann, Professor at Montesquieu-Bordeaux IV University, emphasises that the way the scenario for the introduction of the euro unfurled over a three year transition period has provided very useful information about the originality of the economic and social artefact that is currency. In fact, it was only in the final months of the year 2001, in the run-up to the deadline set in law, that the use of the euro as a bank currency started to take off, despite the fact that the people who had drawn up the timetable for the introduction of the new currency had hoped that people would have got the hang of it bit by bit. It was also necessary for commercial banks to play what in the end was a decisive role by organising a virtual coercive changeover of current accounts in the last six months of the transition period. At the very start of the year, however, the withdrawal of the old currency bank notes and coins took effect at an astonishingly rapid rate. Prof. Kauffmann sees this as a spectacular revelation that the currency has the nature of an institution, along
the lines of a network: "As long as the existing network worked in a satisfactory manner, no player taken individually has any real interest in changing it for a new network, which is necessarily badly understood and above all not very widespread. Vice versa, when a set of collective decisions call on players to make the changeover, it occurs rapidly, it being to each player's advantage to become a user of the new network at the same time as their economic partners ".
In the meantime, the single currency is well and truly there, a successful delivery after a long period of gestation. But this is not the end of European history, but the starting point for new construction sites for the European community. Prof. Kauffmann explains that the EU is one of the rare entities where a currency does not coincide with a state, and this particularity is likely to give rise to other economic and institutional innovations, particularly in that the prospects of the EU enlarging and the existence of current Member States which are soon likely to join EMU mean that the foundations of the euro will be strengthened. This is why "it cannot fail to have a profound impact on the European project and international monetary architecture"…
The essays included in the Revue consider these issues in depth. The first essay places the plan for a single currency into its historical background and was written by Pierre Delfaud (Professor of Economics at Montesquieu-Bordeaux University). He points out that Europe's very own currency began immediately after the Second World War with the European Payment Union and notes that the softly, softly approach regularly taken by Europeans has tended to be thwarted by events, with the euro being created more through a qualitative leap in 1999 than through continuity with the Ecu and the European Monetary System that preceded it. Jean-Marc Figuet from Savoie University looks at the connections between monetary unification and financial unification, observing that while the members of the EU removed all obstacles to the free movement of capital between themselves at the beginning of the 90s, that didn't mean that they created a genuine single financial market - the founding of the euro made a huge contribution, if only by getting rid of all exchange risks within the Eurozone. The next three essays look at macroscopic governance and economic policy issues at EMU level. Bernard Courbis (Lumière-Lyon II University) formulates an initial balance sheet of the activities of the European Central Bank, the "first Community institution organised in a genuinely federal manner". Loïc Grard (Professor of Public Law at Montesquieu-Bordeau IV University) raises the important issue of economic governance within the Eurozone, carefully examining the role of the Stability and Growth Pact, Eurogroup, and the role that might be played by strengthened cooperation. This issue is pursued by Stéphanie Pamies (from the same university in Bordeaux) in her discussion of the more technical issue of macroeconomic adjustments in EMU. The last three essays cover various aspects of the euro and EMU outside the European Union, namely the problem of the euro's value outside the Eurozone (studied by Yann Tampéreau and Jérome Teïletche); the euro's potential as an international currency (Pascal Kauffmann); and the euro's impact on transition economies in Central and Eastern Europe, while Sophie Brana warns against over-rigidity and premature anchoring of the currencies of Central and Eastern European countries to the single currency. To sum up, a very detailed and enlightening overview! Michel Theys
*** IVO MAES: Economic thought and the making of European monetary union. Edward Elgar Publishing (Glensanda House, Montpellier Parade, Cheltenham, Gloucester, 1UA, UK. Tel: (44-1242) 226934 - Fax: 262111 - E-mail: info@e-elgar.co.uk - Internet: http: //http://www.e-elgar.co.uk ). 2002,202 pp. ISBN 1-84064-800-7.
Economic and Monetary Union has fed into the European integration process with the arrival of euro notes and coins in citizens pockets heralding an important stage of the process. In this connection, there is no need to prove the interaction between the elaboration of policies and the schools influencing them, but the economic thought behind the policies still remains to be set out. The author of this book, a researcher at Belgium's national bank, sets the policies in perspective in order to provide greater understanding of the role played by economic theories in European monetary integration. The interpenetration of the political and economic spheres is explained. Ivo Maes writes that "At the heart of the monetary integration process is the desire to establish stability in exchange rates". He sees here a common desire that sets Europe apart from the United States and would certainly amaze US economists since flexible exchange rates are the rule on the other side of the Atlantic. A little later on the Old Continent, discussions gave rise to two different paradigms separating to a certain degree the two great EMU players, France and Germany, namely the controversy between "economists" and "monetarists". Monetarists (led by France) see monetary union as a preliminary stage in the process of political integration, while Germans feel that monetary union is only the apotheosis of the integration process. "The multitude of European plans were largely a synthesis and a compromise between these two approaches", argues the author. The book takes a chronological look at three periods - the first discussions about monetary integration; an outline of economic thought within the institutions; and how monetary union was actually implemented. (AD)
*** MARY PAPASCHINOPOULOU: The Legal Articulation of Central Bank Independence. An Interdisciplinary and Comparative Analysis. Ant. N. Sakkoulas Publishers (69 Solonos, 10679 Athens) and Nomos Verlagsgesellschaft (Baden-Baden). "Schriftenreihe des Europa-Kollegs Hamburg zur Integrationsforschng" series, No 34. 2002, 336 pp. ISBN 960-15-0650-0 and 3-7890-7590-6).
The independence the European Central Bank has been given (in order to enable it to resist pressure from different countries when its comes to implementing monetary policy) constituted a key moment in the creation of the single currency. In this, the European Union developed its very own model in line with its aspirations and its mode of functioning and this book explores the concept of the European Central Bank's independence from the legal viewpoint, but also through three other disciplines, namely economics, politics and history. This enables the author to develop a both theoretical and practical approach to the issue, how it has changed and how it has been applied. She also compares various models, their expected impact and benefits with the aim of providing a general overview of legislation on central banks' independence around the world which will be of use to people studying this crucial issue, in that the implementation of monetary policy plays a vital role in terms of finance and the economy. (BJL)
*** RENE ANDRE: Budget communautaire pour 2003: vers l'élargissement. Délégation pour l'Union européenne de l'Assemblée nationale (Kiosque de l'Assemblée nationale, 4 rue Aristide Briand, F-75007 Paris. Internet: http: //http://www.assemblee-nationale.fr ). "Les documents de l'Assemblée nationale", No 46. 2002, 35 pp, 3.5 euros. ISBN 2-11-115141-6. This report by the French parliament assesses (in a positive light) the EU Preliminary Draft Budget for 2003.
*** PETER COFFEY: The euro: an essential guide. Continuum International Publishing Group (The Tower Building, 11 York Road, London SE1 7NX. Tel: (44-20) 79220880 - Fax: 79220881 - Internet: http://www.continuumbooks.com ). 2001, 260 p., 15,99 £. ISBN 0-8264-4767-8.
Professor at the University of St Thomas (in Minneapolis) and the University of St Paul in the US, after a spell at Amsterdam University, Peter Coffey retraces the history of the euro, going back to the various plans and reports (Schiller, Barre, the first and second Werner reports, etc) that either directly or indirectly led to the creation of the European Monetary System, and hence to the single currency. Taking a historical and theoretical approach, he assesses why twelve EU countries felt it essential to create Monetary Union, the main motives being controlling inflation caused by floating exchange rates, and reacting to lack of action by the US administration in the monetary field. Along the way, the author expresses reservations about the Maastricht Treaty, which he sees as not going far enough. He then looks at the role played by the European Central Bank, with the final part of the book covering the first eighteen months of the euro. Coffey argues that the changeover worked perfectly, with the new currency making a considerable contribution to the process of unification. The work is accompanied by detailed annexes and perfectly merits its title as an essential guide. (ML)
*** Revue d'économie financière. Association d'économie financière (282 bld Saint-Germain, F-75007 Paris. Tel: (33-1) 40499133 - Fax: 40499104). 2002,No 64, 259 pp, 24.40 euros. Annual subscription: 114.50 euros (France), 152.45 euros (elsewhere). ISBN 2-911144-63-5.
This review is a balance sheet of people's knowledge (or ignorance) about savings and investments markets in Europe. Most of the research teams carrying out the study are from the Observatoire de l'Epargne Européenne (European Savings Monitoring Centre), encouraged by the latter and the large bodies supporting it. The authors focus on an in-depth analysis of savings, debt, investment and financial investment behaviour by household in the aftermath of the introduction of the single currency. The essays cover areas such as the model of accumulating wealth, finance tables for European households, breakdown of financial assets of European and US households, a multi-product comparison of savings tax in Europe, the psychological portrait of individual investors in Europe, European life insurance markets, future prospects for life insurance in Europe, the characteristics of share-holders in Europe, investment funds playing a greater role in the funding of European economies and assessing companies' own resources. (ML)
*** Reforming Europe's Economy. Obstacles and Practicalities. The Foreign Policy Centre (Elizabeth House, The Mezzanine Floor, 39 York Road, London SE1 7NQ. Tel: (44-20) 74015350 - Fax: 74015351 - e-mail: info@fpc.org.uk - Internet: http: //http://www.fpc.org.uk ). 2002, 44 pp.
This publication from a think tank close to British prime minister Tony Blair contains some of the addresses made at a conference organised just before the Barcelona European Council in March 2002, following on from the Lisbon Summit that pledged to turn Europe into the world's leading knowledge-based economy by 2010. The reforms required to this end were discussed at the conference, particularly in terms of the labour market, transatlantic trade and the upcoming enlargement of the European Union. (LD)
*** FRANCISCO SOGORB MIRA: On Capital in the Small and Medium Enterprises: the Spanish Case. Instituto de Estudios Europeos de la Universidad San Pablo-CEU (22 Julián Romea, E-28003 Madrid. Tel: (34-91) 5140422 - Fax: 5140428 - e-mail: idee@ceu.es - Internet: http://www.ceu.es/idee ). "Informes del Observatorio de Economía Europea del Instituto de Estudios Europeos" No. 2-2002. March 2002, 32 pp. ISBN 84-95219-49-2.
In this slim volume, a research outlines the methodology (an empirical, econometric analysis) he has used to determine whether the most important theories of finance can explain the choice of capital structure of small and medium-sized enterprises, as claimed by several researchers ahead of the publication of this booklet. In order to carry out his task, the author studied several of these theories through Spanish case studies, using information from some 4,000 SMEs. (BJL)
*** The EUROPEAN COMMISSION (Official Publications Office of the European Communities, L-2985 Luxembourg, http: //publications.eu.int) has published the following documents:
*** Cordis Focus. DG Enterprise (Fax: (352-4301) 32084 - E-mail: innovation@cec.eu.int - Internet: http://www.cordis.lu/news ). 23 September 2002, No 205, 19pp. Free subscription.
We can read in this issue about the Research Commissioner, Philippe Busquin, calling for greater R&D investment. There is also an article about German research providing estimates the success rate of AIDS medicines by identifying factors holding back the spread of the HIV virus, about the Commission attempting to clarify legal procedures for the Community Patent and an agreement with Japan to speed up the deployment of IPV6 (internet protocol, version 6).
*** Info€uro. European Commission newsletter. (Internet: http: //europa.eu.int/euro/). 2002, No22. 24 pp.
This is the final issue of the guide to the launch of Monetary Union and it starts by stating that the euro is a vital stage, but still only a stage in the process. The guide sketches out the future with articles on good governance for a stable European economy, the euro as an international currency, the final timetable for withdrawing national currency from circulation and the euro in candidate countries. In terms of the euro's current situation, the brochure notes that it is already working without hiccoughs, as is shown by a rundown of its "history". The newsletter also looks at challenges successfully taken on, a sector-by-sector account of the big bang, the express changeover for SMEs, banks and the impact on consumers, administrations, countries outside the Eurozone and communication.
*** Magazine. European Agency for Health and Safety at Work.(Gran Via 33 - E-48009 Bilbao - (34-944) 794360 - Fax: 794383 - E-mail: information@osha.eu.int). 28 pp.
Stress-free work is the aim of an initiative implemented in partnership with relevant health bodies. The signs are alarming, which the lead articles expresses in its title as Europe falling prey to stress. The magazine explains that almost one worker in three is affected by work connected stress, and scientific advice in this connection is far from reassuring. Other issues covered include training, the quality of work in the firing line, a library of solutions, improving healthcare under pressure, the cotton industry sweeping the board in terms of stress, and the strength of positive thinking.
*** Memorandum on Animal Welfare to the Danish Presidency. Eurogroup for Animal Welfare. (Foreningen til Dyrenes Beskyttelse I Danmark, 6 rue des Patriotes - B-1000 Brussels - Tel: (32-2) 7400820 - Fax: 7400829 - E-mail: info@eurogroupanimalwelfare.org). 13 pp.
Outlining gaps in European animal welfare legislation, Eurogroup for Animal Welfare points out that it would like the overly minimalist EU animal welfare legislation to take account of pledges made at the time of the Protocol of the Amsterdam Treaty, which foresees the need to preserve animals' living conditions. This means all policies mesh with one another, transport policy, agriculture, research and the internal market, and should take full account of animal welfare imperatives. The memorandum also includes an appeal to the Danish Presidency.
*** Europe infos. Monthly journal of COMECE (Commission of the Bishops' Conference of the European Community) and CESIC (Catholic European Study and Information Centre) (42 rue Stevin B-1000 Brussels - Tel: (32-2) 2350510 - e-mail: europinfos@comece.org). September 2002, No 41, 12 pp.
This issue includes articles on the tricky task of reforming European agriculture, the Convention's work, the European Parliament's own initiative reports and cultural Europe. There is also an article on Slovenia moving from socialism to secularism.
In brief
* * * Focus sur la Flandre. 14 -20 September 2002. This issue reports on a budget agreement at the Flemish government, incentives for building social housing, mutual funds' anger at subsidies for "dependence insurance", income-related dependence insurance, economic news from Flanders and the Church's public finance.