SEVERAL RESPECTS IMPROVING , THE TIME HAS COME FOR A STRONGER DEVELOPMENT OF THE COMMUNITY ' S CENTRAL ECONOMIC MECHANISMS AND PROCEDURES . THIS IS AIMED AT ENABLING THE COMMUNITY TO DO STILL BETTER IN ITS ECONOMIC PERFORMANCE IN THE PERIOD AHEAD . THE OBJECTIVE IS TO PROVIDE A MORE EFFECTIVE COMMON FRAMEWORK IN BOTH THE ECONOMIC AND MONETARY DOMAINS FOR NATIONAL EFFORTS TO SECURE THE SHARED OBJECTIVES OF HIGH EMPLOYMENT AND LIVING STANDARDS , AND MONETARY STABILITY . PUT ANOTHER WAY ROUND , THE OBJECTIVE IS TO REVERSE THROUGH ACTION AT THE COMMUNITY LEVEL THE UNDERMINING OF THE EFFECTIVENESS OF PURELY NATIONAL ECONOMIC POLICY THAT HAS RESULTED FROM THE INCREASED INTEGRATION OF THE ECONOMIES OF MEMBER STATES IN THE EUROPEAN AND INTERNATIONAL ECONOMY .
WHILE INTENT ON BUILDING UP ITS ECONOMIC AND MONETARY SYSTEM FROM WITHIN , THE COMMUNITY IS ALSO SEEKING TO STRENGTHEN THE BASIS FOR ITS COOPERATION WITH THIRD COUNTRIES . THIS IS ILLUSTRATED BY THE POSITIVE COLLABORATION THAT WAS IN FACT ACHIEVED IN THE SUMMER OF 1978 BETWEEN THE COMMUNITY AND THE OTHER PARTICIPANTS IN THE BONN WESTERN ECONOMIC SUMMIT ; AS ALSO BY THE COMMUNITY ' S INTENTION THAT THE EUROPEAN MONETARY SYSTEM BE OPEN FOR ASSOCIATED PARTICIPATION BY NON-MEMBER STATES HAVING PARTICULARLY CLOSE ECONOMIC LINKS WITH THE COMMUNITY . MOREOVER A MAJOR PURPOSE OF STRENGTHENING THE COMMUNITY ' S ECONOMIC AND MONETARY POLICY SYSTEM IS , THROUGH ACHIEVING A SOUNDER BASIS FOR INTERNAL GROWTH , TO RESTORE CONDITIONS FAVOURABLE TO A RAPID GROWTH OF AN OPEN WORLD TRADING SYSTEM AND , THUS ALSO TO A CONTINUOUS EVOLUTION OF ECONOMIC STRUCTURES . THIS ADJUSTMENT PROCESS MUST AIM AT AN EFFICIENT DIVISION OF LABOUR BETWEEN INDUSTRIALIZED COUNTRIES AND THE FULLEST OPPORTUNITY FOR THE GROWTH OF DEVELOPING COUNTRIES . THUS A STRENGTHENED ECONOMIC AND MONETARY POLICY IS AIMED AT SUPPORTING THE POSITIVE ADJUSTMENT OBJECTIVES OF THE COMMUNITY ' S TRADE AND SECTORAL POLICIES .
2 . THE ECONOMIC OUTLOOK
THE TASK OF ADJUSTING THE COMMUNITY ECONOMY TO THE DIFFICULT ECONOMIC CONDITIONS PREVAILING SINCE THE OIL CRISIS IN 1973 IS BROADLY PORTRAYED IN THE FOLLOWING DATA - ALTHOUGH , OF COURSE , THERE HAVE BEEN MAJOR DIFFERENCES IN THE EXPERIENCES OF INDIVIDUAL MEMBER STATES . THE DATA FOR 1978 CONTAIN AN ELEMENT OF ESTIMATION AND FORECASTING BY THE COMMISSION , AND FOR 1979 THEY ARE COMMISSION FORECASTS ON THE BASIS OF POLICIES DESCRIBED IN THIS REPORT :
THE COMMUNITY ECONOMY 1973 TO 1979
// //
// GDP VOLUME GROWTH // RISE IN CONSUMER PRICES // CURRENT ACCOUNT BALANCE OF PAYMENTS // GENERAL GOVERNMENT FINANCIAL DEFICITS // MONEY SUPPLY GROWTH ( M2 ) // UNEMPLOYED IN LABOUR FORCE //
// ( % ) // ( % ) // ( BILLION EUA ) // ( % GDP ) // ( % ) // ( % ) //
//
1973 // 5.7 // 8.3 // 1.6 // - 0.9 // 16.5 // 2.5 //
1974 // 1.7 // 12.8 // - 9.2 // - 1.7 // 12.8 // 2.9 //
1975