1. 6. 73 Official Journal of the European Communities No C 36/41 
CONSULTATION OF THE ECONOMIC AND SOCIAL COMMITTEE 
on a proposal for a Council Decision setting up a European Monetary Cooperation Fund 
A. REQUEST FOR AN OPINION 
At its 226th meeting held on 5 and 6 February 1973, the Council decided to consult 
the Economic and Social Committee on the above proposal for a Decision. 
The request for an Opinion was sent by the President of the Council to the Chairman 
of the Economic and Social Committee on 6 February 1973. 
B. TEXT WHICH WAS THE SUBJECT OF THE CONSULTATION 
The Economic and Social Committee formulated its Opinion on the draft Decision 
submitted by the Commission to the Council on 25 January 1973 at its 109th Plenary 
Session held in Brussels on 21 and 22 February 1973. 
The text of Regulation (EEC) No 907/73 adopted by the Council on this basis on 
3 April 1973 was published in the Official Journal of the European Communities No 
L 89 of 5 April 1973, p. 2. 
C. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE 
At its 109th Plenary Session held in Brussels on 21 and 22 February 1973, the Committee 
adopted its Opinion on the text referred to under B by 80 votes to 2, with 19 
abstentions, out of the 101 members present or represented. 
The text of the Opinion is as follows: 
THE ECONOMIC AND SOCIAL COMMITTEE, HAS ADOPTED THE FOLLOWING OPINION: 
Having regard to the request for an Opinion by the 
Council of the European Communities dated 
6 February 1973 on the 'Proposal for a Council 
Decision setting up a European Monetary 
Cooperation Fund'; 
Having regard to Article 235 of the Treaty 
establishing the European Economic Community; 
Having regard to Article 198 of the Treaty 
establishing the European Economic Community; 
Having regard to the decision of its Chairman on 
6 February 1973, in accordance with Article 22 of the 
Rules of Procedure, to entrust the Section for 
Economic and Financial Questions with the 
preparation of an Opinion on the matter; 
Having regard to the Opinion of the Specialized 
Section for economic questions of 21 February 1973; 
Having regard to the verbal report presented by the 
Rapporteur, Mr Cammann; 
Having regard to its deliberations at its 109th 
Plenary Session, held on 21 and 22 February and its 
meeting on 22 February 1973; The Economic and Social Committee considers that 
the adoption of the proposal for a Decision (l) is an 
appropriate step to take, bearing in mind that such 
a Fund would be an important and necessary first 
instrument in the achievement of economic and 
monetary union. However, in the present 
circumstances, the fact that it is a formal proposal 
should not be allowed to cloud the issue. 
I. GENERAL REMARKS 
1. The setting-up of a European Monetary 
Cooperation Fund should not be looked upon as an 
isolated act of monetary policy but as an integral 
part of the measures for the establishment of 
economic and monetary union. 
In this connection, the Committee can only confirm 
what it set out in its 'Study on Monetary Problems' 
on 27 February 1972, when it declared: 
'Monetary organization is not separate entity in 
the achievement of economic union. There would 
No C 36/42 Official Journal of the European Communities 1.6.73 
be a considerable risk that a semblance of 
monetary unification would overshadow the 
decisions necessary in creating a common 
economic, social and institutional policy. 
Monetary union can be attained only if genuine 
economic union is achieved also. This principle 
remains valid at all stages.' 
2. The Committee considers there are two main 
parts to the aims of the Commission's proposal, 
namely that, from a monetary point of view, 
economic and monetary union in its final stage 
should be characterized by the following: 
— either by a total and irrevocable change in the 
exchange rates of Community currencies with 
one another, 
— or by the introduction of a common currency. 
3. If this is the case, the European Monetary 
Cooperation Fund should not be set up merely 
with the intention of re-grouping the various 
machinery existing for the settlement of monthly 
accounts and for short-term financial assistance. 
Furthermore, it should be the first stage in the setting 
up of a Central Community Bank system, and should 
gradually receive the same scope as a Central Bank 
has at present, both in home and foreign dealings. 
This should be taken into account when deciding on 
the guidelines of future action. 
4. In this development of the Fund into a Central 
Community Bank system care must be taken to see 
that there is a close and direct exchange of 
information, in order to unify the actions of the 
Central Banks. However, if the system merely 
functions at this level, it will not achieve even the 
minimum requirements of an instrument of monetary 
policy. It would therefore be imperative for the Fund 
to encourage an approximation of policies on credit 
matters and of the instruments necessary for the 
implementation of a common monetary policy. At 
this stage, the instruments should be integrated and 
be the same for the Community as a whole. One 
should in any case beware of any compromise 
solution consisting simply in adding on to the various 
instruments already existing in the Member States. 
5. Assuming that similar progress is being made 
in the economic, social and institutional field, it is 
indispensable that the Fund should receive wider 
powers in the direction of monetary policy under the 
new Decisions, which the Council should push 
through quickly. What is essential, however, is that, 
from this moment on, the Fund should receive, in the terms of the Statutes, a free hand, provided that 
its measures conform to the guidelines of economic 
policy laid down by the Community authorities. 
II. SPECIAL REMARKS 
1. Among the present tasks of the Fund, particular 
stress should be laid on the necessary consultation 
laid down in Article 3 of the proposal for a 
Decision and on the policy of intervention with a 
view to maintaining the limits of the margins of 
currency fluctuation, in accordance with the 
Decision of 21 March 1972. The Committee regrets 
that it does not possess the Cooperation Agreement 
of 10 April 1972 between the Central Banks and 
the enlarged Community, although this agreement is 
a cornerstone of the Fund. 
2. As regards the agents to be entrusted with the 
technical aspects of carrying out the Fund's 
operations, further details should be provided, in the 
sense that, if the Bank for International Settlements 
can be referred in the initial stages, that could be 
only a temporary solution to the problem. The 
execution of tasks assigned to the Fund should be 
seen to by the Fund itself as soon as it possesses 
adequate administrative machinery. 
3. So as to avoid de-centralizing the Decision 
taken in monetary matters, the administrative 
Council of the Committee of governors of the Central 
Banks should take on the responsibility for tasks 
committed to them as they arise. The Council would 
then take on its due stature and would progressively 
help to establish the monetary identity of the 
Community. 
III. CONCLUSION 
1. It is not to be expected that the Fund will be 
able to settle questions outside its own duties. It 
cannot take upon itself the task of lessening the 
impact of obstacles created by the divergencies 
between present national economic policies; efforts 
should first be made to coordinate these policies at 
Community level, on this basis, creating adequate 
provisions for the economic policy, in particular 
setting up stringent procedures for preference over 
granting facilities, beyond the short-term, for 
difficulties incurred with regard to balance of 
1.6.73 Official Journal of the European Communities No C 36/43 
payments. The ultimate objective should be to 
progressively pool reserves and create a Community 
currency. 
2. The latest development on the foreign exchange 
market has shown once again how important a 
closer cooperation on monetary policy is within the 
Community. 
Revaluations and devaluations caused by unrest in 
monetary policy are just as damaging to the 
structure as letting the exchange rate float. 
Consequently a constructive common European 
monetary policy based on definite rates of exchange 
between the Community currencies which can be 
changed only by Community consultations must be 
conceived and achieved immediately. The 
establishment of new instruments alone — even of a 
European Monetary Cooperation Fund will 
certainly prove insufficient. This will be the case, 
especially as long as three Members operate totally 
flexible rates of exchange, three others operate 
partly flexible rates of exchanges and three operate 
fixed rates of exchange within the Community. 
In this situation the Fund can only completely 
implement its settlement mechanism for the last 
group, only partially for the second group and not 
at all for the first group. 
Done at Brussels, 22 February 1973. 3. Therefore the first requirement for a common 
European economic and currency policy is an 
increased political readiness to accept this from 
Members and the associated sacrifice in autonomy. 
Within the Community there must be broad 
agreement in discussions and consultations. This was 
unfortunately not the case in the middle of February 
1973. 
4. Also from the point of view of the urgently 
needed common monetary policy approach of the 
Community countries vis-a-vis the other large 
monetary zones of the world, ie the dollar and the 
yen, and of a common contribution to the reform 
of the international systems, greater solidarity as 
regards monetary policy is absolutely essential among 
the Member States. 
To this end the Community should be represented in 
the international monetary policy negotiations by a 
common spokesman representing a commonly 
determined viewpoint. 
5. Finally it is indispensable that the Fund's 
functions be considerably extended in the near 
future, so that it can become the driving force of 
monetary policy integration; in the same way 
governments must be politically prepared and direct 
their actions in such a way that they correspond to 
the common aim of an economic and monetary union. 
The Chairman 
the Economic and Social Committee 
Alfons LAPPAS