ABSTRACT
This chapter provides a discussion on "The CAP in a Growing European Community (E.C.) and in a Rapidly Changing European Political Scenario: Its Implications for US-E.C. Agricultural Trade Relations" by Stefan Tangermann. His main theme is that European political and economic integration are not separable processes. Professor Tangermann notes that monetary union eliminates exchange rate changes as a macroeconomic adjustment mechanism if wages tend to be inflexible and labor tends to be immobile. Professor Tangermann observes that the fixed goals of unification laid out by the E.C. has set a firm long-run target that necessitates an attitude adjustment that has largely come about. Professor Tangermann promotes that the E.C.’s political obligations are stronger towards the latter nations, recognizing that the political and economic stability among central and east Europe nations is at risk. Professor Tangermann projects that there will be fewer conflicts between the US and Europe as the E.C. focuses more on the higher value-added food processing activities.
