Basic Features of a European Monetary Order

The European Council took a decision in Strasbourg last December which will have far-reaching implications. Before the end of this year an intergovernmental conference is to be convened which is to discuss, and to decide on, the future road to European economic and monetary union and its institutional structure. It is to provide the legal basis for the necessary responsibilities which now rest with the national authorities to be transferred to Community bodies. Monetary policy will be affected most. The ruling EC treaty does not provide for any Community responsibility for monetary policy, which sufficiently explains why institutional steps towards monetary integration require an amendment to the treaty. Article 102 A, which was added to the ruling EC treaty by the Single European Act in 1986, expressly reaffirmed this requirement by stating: “In so far as further development in the field of economic and monetary policy necessitates institutional changes, the provisions of Article 236 shall be applicable.” Pursuant to that article, such amendments shall be “ratified by all the member states in accordance with their respective constitutional requirements.”