The Single European Currency in National Perspective: A Community in Crisis?

225 Pages·1998·21.508 MB·English

by  Bernard H. Moss, Jonathan Michie (eds.)

THE SINGLE EUROPEAN CURRENCY
IN NATIONAL PERSPECTIVE
Also by Bernard H. Moss
THE ORIGINS OF THE FRENCH LABOR MOVEMENT
Also by Jonathan Michie
CONTRACTS, COOPERATION AND COMPETITION: Studies in
Economics, Management and Law (edited with Simon Deakin)
FIRMS, ORGANIZATIONS AND CONTRACTS: A Reader in
Industrial Organization (edited with Peter Buckley)
THE ECONOMICS OF RESTRUCTURING AND INTERVENTION
THE POLITICAL ECONOMY OF SOUTH AFRICA'S TRANSITION
(edited with Vishnu Padayachee)
The Single European
Currency in National
Perspective
A Community in Crisis?
Edited by
Bernard H. Moss
Associate
Institute of European Studies
London
and
Jonathan Michie
Professor ofM anagement
Birkheck College
University ofL ondon
First published in Great Britain 1998 by
MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire RG21 6XS and London
Companies and representatives throughout the world
A catalogue record for this book is available from the British Library.
ISBN 978-1-349-26581-7 ISBN 978-1-349-26579-4 (eBook)
DOI 10.1007/978-1-349-26579-4
First published in the Uni ted States of America 1998 by
ST. MARTIN'S PRESS, INC.,
Scholarly and Reference Division,
175 Fifth Avenue, New York, N.Y. 10010
ISBN 978-0-312-21531-6
Library of Congress Cataloging-in-Publication Data
The single European currency in national perspective : a community in
crisis? / edited by Bernard H. Moss and Jonathan Michie.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-312-21531-6 (cloth)
I. Monetary unions. 2. Monetary unions-European Union countries.
3. Monetary policy-European Union countries. 4. Monetary policy
-European Union countries. 5. Money-European Union countries.
6. European Union countries-Economic policy. 7. Europe-Economic
integration. I. Moss, Bernard H. 11. Michie, Jonathan.
HG3894.S57 1998
332.4'94-dc21 98-13924
CIP
Selection and editorial matter © Bernard H. Moss and Jonathan Michie 1998
Chapters I, 3, 7 © Bemard H. Moss 1998
Chapter 2 © Jonathan Michie 1998
Chapters 4-6, 8-10 © Macmillan Press Ltd 1998
Softcover reprint ofthe hardcover 1st edition 1998 978-0-333-72548-1
All rights reserved. No reproduction, copy or transmission of this publication may be made
without written permission.
No paragraph of this publication may be reproduced, copied or transmitted save with
written permission or in accordance with the provisions of the Copyright, Designs and
Patents Act 1988, or under the terms of any licence permitting lirnited copying issued by
the Copyright Licensing Agency, 90 Tottenharn Court Road, London WIP 9HE.
Any person who does any unauthorised act in relation to !his publication may be liable to
criminal prosecution and civil claims for damages.
The authors have asserted their rights to be identified as the authors of this work in
accordance with the Copyright, Designs and Patents Act 1988.
This book is printed on paper suitable for recycling and made from fully managed and
sustained forest sourees.
10987654321
07 06 05 04 03 02 01 00 99 98
Contents
List of Tables vii
Preface and Acknowledgements viii
List of Contributors ix
Introduction 1
Chapter 1. The Single European Currency in National
Perspective: A Community in Crisis?
Bernard H. Moss 8
Part I National Perspectives
Chapter 2. Economic Consequences of EMU for Britain
Jonathan Michie 37
Chapter 3. France: Economic and Monetary Union and
the Social Divide
Bernard H. Moss 58
Chapter 4. Hoist with its Own Petard: Consequences of
the Single Currency for Germany
Jorg Huffschmid 87
Chapter 5. Italy Towards European Monetary Union
(and Domestic Disunion)
Annamaria Simonazzi and Fernando Vianello 105
Chapter 6. State Intervention and the Question of
European Integration in Spain
Miguel Martinez Lucio 125
Part II Europe in Crisis?
Chapter 7. Is the European Community Politically Neutral?
The Free Market Agenda
Bernard H. Moss 141
Chapter 8. The Economic Limits of European Integration
John Corcoran 168
v
vi Contents
Chapter 9. EMU and the Democratic Deficit
Bill Morris 181
Chapter 10. Why 'Employability' Won't Make EMU Work
Andy Robinson 191
Name and Subject Index 210
List of Tables
4.1 Export shares of GDP for four leading EC members,
the USA and Japan 91
4.2 Trade balances of four leading EC members in the
1970s, 1980s, and 1990s 91
8.1 Differential pricing in the EU 172
8.2 How Europe's poor pay more for the CAP 173
8.3 Unemployed as a percentage of the civilian labour
force (July 1996) 175
vii
Preface and Acknowledgements
All the material collected together in this book was commissioned
and written specifically for publication here. We are therefore grateful
to the authors for having undertaken this work and for having re-
sponded quickly yet fully to all editorial suggestions. Early drafts
of some of the papers were presented and discussed at a confer-
ence on 'The Single Currency in National Perspective' held in London
in October 1996. We are grateful to UACES for having hosted
that event. Of course, responsibility for the views expressed in the
following chapters is solely that of the respective authors. We are
also grateful to Linda Auld and Sunder Katmala of Macmillan for
the speedy and efficient production of the book.
Bernard Moss would like to add his acknowledgements to Pro-
fessors Francis Snyder and Alan Milward of the European Univer-
sity Institute in Florence for introducing him to the subject, to Drs
Steven Jeffreys, Valerio Lintner, and Amy Verdun for reading por-
tions of the manuscript, to the anonymous reader for Contempor-
ary European History for comments on an article drawn from material
in this book, and to Rene Mouriaux of CEVIPOF for his insights
and friendship over the years.
Jonathan Michie would like to add his thanks to, first, his col-
league and co-author Michael Kitson of St Catharine's College,
Cambridge, for joint work on these and other topics. Chapter 2
draws on some of that work. Secondly, to John Corcoran for having
commissioned a guest lecture on the topic at the University of
Sunderland Business School, the text of which became the first draft
for Chapter 2. Thirdly, to Bernie Moss for having suggested this
book in the first place and subsequently driving the project through
to completion. And fourthly, to Robyn May for assistance in edit-
ing the manuscript.
Finally, this book would not have been possible without the love
and support of our families and we would therefore like to add a
special thanks to them; from Bernard Moss to his wife Neysa and
son David, and from Jonathan Michie to his wife Carolyn and sons
Alex and Duncan.
Bernard H. Moss
Jonathan Michie
October 1997
viii
List of Contributors
John Corcoran is Senior Lecturer in Economics, Economics Divi-
sion, Sunderland Business School, University of Sunderland.
Jorg Hulfschmid is Professor for Political Economy and Economic
Policy at the University of Bremen. His specialisms are in Euro-
pean integration, economic concentration, the European arms in-
dustry and, recently, financial markets.
Miguel Martinez Lucio is a Lecturer at the University of Leeds.
Jonathan Michie is Professor of Management, Birkbeck College,
University of London. He was previously at the Judge Institute of
Management Studies, University of Cambridge, and before that
worked in Brussels as an Expert to the European Commission.
Bill Morris is General Secretary of the Transport and General
Workers' Union (TGWU).
Bernard H. Moss is a professor of history, associated with the Institute
of European Studies in London, who has written widely on modern
and contemporary France. With an LL.M. from the London School
of Economics, he has expanded his interests to the European Union.
Andy Robinson is Business Week's correspondent in Madrid and an
economic journalist on Spain's financial daily, Cinco Dias.
Annamaria Simonazzi teaches economics at the University of Rome
- 'La Sapienza'. She has written extensively on monetary policy
and unemployment, competitive deflations and the European Mon-
etary Union.
Fernando Vianello teaches economics at the University of Rome -
'La Sapienza'. Among his publications are the entry on the Labour
Theory of Value in the New Palgrave Dictionary, and a number of
essays on growth and income distribution, the investment function,
the Italian economy and the 1992 EMS crisis.
ix