ABSTRACT
In the early years of the European Economic Community (EEC), various attempts were made to redress the imbalance which was found in the Treaty of Rome. The year 1968 started with a growing interest in EEC monetary integration springing from many different sources. The various proposals which were put forward during this period leading towards monetary integration in the EEC were mainly motivated by external preoccupations. The Monetary Committee, consisting of the deputy governors of the EEC central banks together with one high-level official from each national administration and laid stress on the greatest possible stability of exchange rates. It also describes the passage from co-ordination to centralisation of monetary decisions as a step forward and emphasises the need for close co-ordination of economic policies. The external environment with which the EEC countries were faced helps to explain the caution shown in the Treaty with respect to balance of payments problems and the liberalisation of capital movements.
