The Second Werner Report and the Subsequent Agreements
The main body of the much awaited Second Werner Report (dated 8 October 1970) does not differ greatly from the First Werner Report. There is once again a desire to achieve a complete economic and monetary union in the European Economic Community by 1980. As in the first report, only the first stage of integration, 1971–3 inclusive, is spelled out in any detail, and as before budgetary policy is emphasised. However, on this occasion there are two fundamental differences with the first report. Firstly, despite the repetitive nature of the main body of the document, parts of the new sections emerged as a compromise between the views expressed by the ‘economists’ and the ‘monetarists’. The Council of Ministers had indeed asked the Werner Committee to seek out common ground between the sides when they had asked for the preparation of a second report in June 1970. Thus whilst the Report does seek a complete economic and monetary union by 1980, it also draws attention to the dangers of regional imbalance, unemployment, environmental problems and the disequilibriating effects of capital movements. It agrees that financial compensation should be given in the first two cases and that such a responsibility may be too much for individual states to carry.
KeywordsMember State Monetary Policy Central Bank Monetary Union European Economic Community
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