Macroeconomic and monetary thought at the European Commission in the 1960s

Abstract

This paper discusses macroeconomic and monetary thought at the European Commission in the 1960s. It is based on an analysis of public documents, archival research, as well as a large scale programme of interviews. The paper starts with an overview of the economic philosophy of the Rome Treaties and developments in the 1960s, followed by a presentation of senior macroeconomic policy-makers at the Commission. Thereafter, the focus is on three crucial macroeconomic policy documents of the period: the project of a European Reserve Fund in 1958, the Commission's Action Programme for the Second Stage of 1962 and the Barre Memorandum of October 1969. The objectives of the Commission were both more defensive, preserving the 'acquis communautaire', especially avoiding the recourse to the safeguard clauses, as pro-active, stimulating the process of European integration. From an analytical point of view, the Commission focussed on the linkages and interdependencies between the Member States and the compatibility of policies. Gradually, a typical Commission analysis developed, based on a blending of German convergence ideas with the French medium-term approach. The paper also illustrates the ascension of the Commission as an actor in the monetary area, notwithstanding the rather limited provisions of the Rome Treaty.