THE EUROPEAN MONETARY SYSTEM

Abstract

The European Monetary System has to be seen in the framework of European integration and of the European Economic Community. Applying a legal approach to the subject, it therdore suggests itself to start with loaking for provisions having an impact on European monetary matters in the Treaty of Rame.ı The authors of this Treaty, however, did not pay much attentian to monetary problems. The faw provisions of the Treaty, which refer to monetary questions, are for from establishing a full - fledged monetary system among the member states (Arts. 67-73 and 104-109). Also the estacblishment of a European Monetary System is not mentioned among the principles of the Community.2 What can be derived from the provisions of the Treatf of Rame has been called a monetary code of conduct in embryo.3 The chapters on the transfer of capital and on the balance of payınents contain the relevant norms (Arts. 67-73 and 104-109). These differ much as to preciseness and intensity of the obligations of states parties. Thus states f,i. must admit free currant payments (Art. 1013 par. 1), where as their obligations relating to free capital transfer are far vaguer. Free capital transfer is only required to "the extent necessary for the good functioning of the Comman Market" (Art. 67 par. 1). The Treaty does not contain norms on the two basic components inherent in any international monetary system: exchangı: rates and mechanisms of cooperation.