Deutsche Bank 1 - Historische Gesellschaft der Deutschen Bank e.V.

"Ad-Hoc Programme". Unfortunately, however, tangible
successes in the sense of an "orderly floating" have not
yet materialised, though one should not forget, of
Course, that the cornbined inflow of oil surpluses has
placed particularly difficult obstacles in the way of cen-
tral bank cooperation. On the other hand, an alternative
to the present exchange rate system is not in sight at the
moment.
By the end of 1974, after fluctuations in the latter Part
of the year, the D-Mark had appreciated by about 8%
against all currencies and by 15% against the US Dollar
since the beginning of the year. This reflected, above all,
the Federal Republic's strong foreign trade position.
The "mini-snake", i.e. the bloc-floating of five EC-
currencies (including the D-Mark) and two Scandinavian
currencies, has functioned smoothly. France withdrew
frorn this rnonetary association in Spring 1974. While the
base rates of the mernber currencies had to be altered
several times during 1973, no adjustments have been
necessary since then.
Little Progress in European integration
The prospects for an early completion of the European
Economic and Monetary Union did not irnprove in 1974.
The oil price crisis has intensified the structural differ-
ences existing in Europe. The divergencies in the infla-
tion rates within the Cornrnunity and in the balance of
payments positions of individual countries are greater
than ever. ltaly implemented measures to restrict im-
ports ternporarily, in its trade with the EC-partners as
well. National differences are rnaking it rnore difficult to
reach agreernent on a cornrnon energy policy. Further
negative factors proved to be the British desire for a re-
examination of its conditions of membership and the
Referendum planned for the summer.
Nevertheless, under the pressure of the new crisis
situation, it was possible to achieve sorne success in
questions of financial solidarity. Towards the end of the
year, the EC's medium-term rnonetary assistance was
rnobilised in favour of Italy; with these funds, short-term
EC-loans totalling 1.2 bn. units of account (UA) were re-
deemed. The Federal Republic placed a US-$2 bn. gold-
secured loan at Italy's disposal.
The purpose of the EC-loan planned for 1975 and to be
guaranteed by the member countries, is to raise US-$ 2
bn., primarily in OPEC states, in favour of Partner nations
with a weak balance of payments position. The much-
disputed "European Regional Development Fund" has
been in existence since the beginning of 1975 and was
allocated 1.3 bn. units of account (UA) for a trial period
of three years. It may also be adjudged a positive deve-
lopment that, at the latest round of monetary negotia-
tions within the framework of the Group of Ten and the
IMF in Washington, the EC member-states took up a
common stand.
It is still true that the future fate of European integra-
tion depends on political decisions taken at the highest
level. These are influenced by, amongst other things,
everyday economic and monetary practices in the indi-
vidual EC-countries. To secure what has been achieved
and to create a sound basis for a renewed effort, all the
member-states must work far more energetically than
they have done in the past towards a coordinated stabil-
ity policy. The necessary financial assistance in favour of
the weaker Partners rnust be given selectively with a
view to reinforcing their econornic structures. Only then
can there be hope that the current disequilibria within
the Community can be reduced to a tolerable magnitude
in the foreseeable future.