OF REGULATION NO 974/71 FOR ITS CEASING TO BE APPLICABLE HAD BEEN MET ON THAT DATE BY REASON OF THE FACT THAT, AFTER THE WASHINGTON AGREEMENT OF 18 DECEMBER 1971, MEMBER STATES HAD DECIDED NOT TO FLOAT THEIR CURRENCIES, WHILE ACCEPTING A MARGIN OF FLUCTUATION FOR EXCHANGE AROUND A RATE, KNOWN AS A CENTRAL RATE, GREATER THAN THAT PERMITTED BY THE BRETTON WOODS AGREEMENTS .
23 ARTICLE 8 OF REGULATION NO 974/71 PROVIDES THAT IT SHALL CEASE TO BE APPLICABLE AS SOON AS ALL THE MEMBER STATES CONCERNED AGAIN APPLY THE INTERNATIONAL RULES ON MARGINS OF EXCHANGE RATE FLUCTUATION AROUND OFFICIAL PARITY .
THIS PROVISION ENVISAGES THE ABOLITION OF COMPENSATORY AMOUNTS AS SOON AS ALL THE MEMBER STATES HAVE DECIDED TO OBSERVE AGAIN THE ORIGINAL PARITIES, OR NEW PARITIES DECLARED TO THE IMF .
24 THE AGREEMENT OF 18 DECEMBER 1971 DID NOT MEET THESE REQUIREMENTS .
FAR FROM RESTORING FIXED PARITIES, THE COUNTRIES CONCERNED MERELY AGREED THAT THEY WOULD MAINTAIN, AS FAR AS POSSIBLE, CENTRAL RATES, WHICH WERE SUBJECT TO ALTERATION; THE AGREEMENT ALSO ALLOWED MARGINS OF FLUCTUATION AROUND THESE RATES OF 2.25 PER CENT ABOVE AND BELOW, SOMETIMES EQUALLING THE VERY FLUCTUATIONS WHICH HAD PROMPTED THE INTRODUCTION OF COMPENSATORY AMOUNTS .
MOREOVER, EVEN AFTER THE AGREEMENT MENTIONED, THE TREND TOWARDS THE REVALUATION OF CERTAIN CURRENCIES IN THE COMMUNITY CONTINUED WITHIN THE SCOPE OF THE WIDENED MARGINS OF FLUCTUATION; AT THE TIME OF THE DISPUTED IMPORTS, THE DIFFERENCE BETWEEN THE DM AND ITS OLD OFFICIAL PARITY HAD REACHED 13 PER CENT, WHERE IT REMAINED UNTIL THE DEVALUATION OF THE DOLLAR ON 8 MAY 1972 .
FINALLY, THE FACT THAT IT WAS CERTAIN THAT THE MEMBER STATES CONCERNED WOULD NOT GO BACK TO THE OLD PARITIES AGAINST THE DOLLAR WAS NOT RELEVANT, SINCE THE INTERNATIONAL RULES MENTIONED IN ARTICLE 8 DO NOT PROVIDE FOR ONE SET PARITY BUT FOR A SYSTEM OF FIXED PARITIES .
III - QUESTION THREE
25 THE THIRD QUESTION ASKS WHETHER ARTICLES 5 AND 107 OF THE TREATY, AND THE RESOLUTION ADOPTED BY THE COUNCIL AND GOVERNMENT REPRESENTATIVES OF THE MEMBER STATES OF 22 MARCH 1971 ON THE ESTABLISHMENT BY STAGES OF AN ECONOMIC AND MONETARY UNION SHOULD BE INTERPRETED AS PROHIBITING MEMBER STATES, AT THE TIME OF THE IMPORTATION IN DISPUTE, FROM " FREEING THEIR RATES OF EXCHANGE ", THAT IS, FROM FLOATING THEIR CURRENCIES .
26 ONE OF THE CARDINAL AIMS OF THE TREATY IS TO CREATE A SINGLE ECONOMIC REGION, FREE FROM INTERNAL RESTRICTIONS, IN WHICH ECONOMIC AND CUSTOMS UNION MAY BE PROGRESSIVELY ACHIEVED .
THIS REQUIRES THE PARITIES BETWEEN THE CURRENCIES OF THE VARIOUS MEMBER STATES TO REMAIN FIXED; AS SOON AS THIS REQUIREMENT CEASES TO BE MET, THE PROCESS OF INTEGRATION ENVISAGED BY THE TREATY WILL BE RETARDED OR PREJUDICED .
IT IS THEREFORE THE DUTY OF THE COMMUNITY INSTITUTIONS AND OF MEMBER STATES TO COOPERATE IN AND TO ENSURE THE CREATION AND MAINTENANCE OF THESE CONDITIONS .
TO THAT END, ARTICLE 3 ( G ) PROVIDES FOR THE PROCEDURES TO