The Gazette 1979

GAZETTE

JULY-AUGUST

1979

policies of the Member States have in fact diverged much

more profoundly than at any other time since the

immediate Post-War period. Some Countries have

weathered the storm better than others and have been

able to control inflation fairly well but others have not

found it so easy. These different outcomes of what is

certainly a common wish to control inflation derive from

a number of basic differences between Member States

which have proved more important than had perhaps

been envisaged in earlier years. These include differences

in the stages of economic development of Member States

which as a result requires the application of different

economic policies, differences in the degree to which

Member States are dependant on export trade, differences

in the institutional structures of Member States — a

particular sector being that of Trade Unions and their role

in Industry. How a country is placed in relation to such

factors will depend on what rate of inflation will

affect such a country. With divergences in inflation

rates there follows a decisive impact on the stability of

exchange rates and this has a detrimental effect on

policies — an obvious one being the Common

Agricultural Policy. As a result the emergence of a

Common Community Economic Policy is faced with

many difficulties and is unlikely to emerge unless a

number of pre-conditions are met. These pre-conditions

would basically include mutual assistance on an extensive

scale. But that is not the complete answer - Member

States must create for themselves a climate to take

advantage of this assistance — otherwise these loans or

grants will be worthless because Countries will not have

the basic elements for stability. The recent agreement to

introduce a European Monetary System is a combined

effort on behalf of the Member States to stabilise

exchange rates. With its introduction there will be

restrictions and thereby limits to the extent by which any

currency may be allowed to deviate from the system. This

will inevitably involve discipline and possibly restraint but

the acceptance by Member States of such discipline could

provide the basis for sound economic and indeed social

progress. The problems in this area remain immense but

their solution is a pre-condition for the ultimate achieve-

ment of political and economic unity.

Some of the problems arise because the Member States

are deeply involved in the world economy and the

experience of the 1970s has shown how damaging the

turbulence of the international economy can be. The

rampant inflation, the many unemployed, the near

destruction of major industries have largely been induced

from outside. The Community cannot turn its back on the

world economy but it must have some form of protection.

A general tariff is a blunt instrument of protection and

maybe the Community does not need it. But the

Community has not replaced the declining tariff by other

means of defence against the turbulence of the inter-

national economy nor has it done much to bring the

instability under control by commmon actions with its

economic partners. Tariff-cutting can be one element in a

constructive policy but it must be supplemented by other

measures in order to give stability to the Community in

this turbulent world.

The Community is seeking positive solutions to these

problems through the collective and co-ordinated action

of its Member States aimed at benefiting all rather than

through unilateral and perhaps contradictory measures

which although possibly of benefit to some might by the

same token prove injurious to others. This co-ordinated

approach is the essential characteristic of the Community

and while it may sometimes appear slow to those

demanding immediate action it represents a fundamental

application of the democratic method and ensures that

before decisions are taken the long-term interests of all the

Member States are duly taken into account. It is this basic

principle which has guided Community policies and

which will continue to govern its approach in the future.

Unfortunately the future well-being of the Community is

far from certain. There are many problems to be solved

and if we fail to meet this challenge we shall certainly be

worse off in all respects and Western Europe would enter

a time of troubles such as we have not known since the

War. Public opinion must also regain confidence in the

potential of the Community to serve the interests of the

peoples of Europe. Ireland has benefited from Member-

ship of the Community. The market opportunities have

provided the means for Economic expansion on which

Social and even Political progress will be possible. The

future of this country is closely linked with future develop-

ments in the Community. However, we have problems of

our own making and these we will have to solve if we are

to benefit from Community Membership. This will not be

easy but we must face that reality. And eventually this

economic progress could contribute to the political

progress of the whole of Ireland. This is surely an ideal

worth striving to achieve. Ladies and gentlemen, the

Community is at the crossroads but we cannot stand still

- We must go forward together. I will leave you with the

words of Robert Schuman, the French Foreign Minister

who said in 1950:

''Europe will not be built in a day; nor as part of some

overall design. It will be built through practical achieve-

ments that first create a sense of common purpose."

The Guest Speakers at the Meeting were Mr. Richard

Burke, member of the E.E.C. Commission, the Hon. Mr.

Justice Liam Hamilton, Judge of the High Court, and Mr.

Michael O'Leary, T.D., Deputy leader of the Labour

Party.

Law Society

Vacancy for Examiner and

Lecturer

Applications are invited not later than Friday, 17th

August, 1979 for the post of:

EXAMI NER

AND

LECTURER

COMPANY LAW

Particulars may be obtained from:-

Professor Richard Woulfe,

Director of Education,

Incorporated Law Society of Ireland,

Blackball Place.

Dublin 7.

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