Leaders of the European Common Market have announced that the new European Monetary System -- or EMS -- will be put into operation on Tuesday (13 March).
Leaders of the European Common Market have announced that the new European Monetary System -- or EMS -- will be put into operation on Tuesday (13 March). The scheme is designed to protect trade within the Community from the ill effects of ???nstable currencies. The EMS incorporates a new exchange rate mechanism which will be backed by the resources of the member countries' central banks.
SYNOPSIS: The venue for the two-day summit was Paris and the nine heads of government began their talks there on Monday (12 March). Introduction of the European Monetary System has been delayed for more than two months because of a dispute between France and West Germany. But, shortly after Monday's summit began, the Community leaders issued a statement, effectively launching the EMS.
The summit is hosted by French President, Valery Giscard d'Estaing -- seen arriving here. One of the biggest problems facing the Community is unemployment. President Giscard himself has to deal with clashes in Northern France between police and thousands of steel workers facing redundancy.
Latest figures show that six and a half million people are out of work in the nine countries of the Community -- many of them under the age of twenty-five.
All Community leaders have decided to join the EMS, except for British Prime Minister, James Callaghan. But he attended the Paris summit all the same.
The summit was told that it was vital for the success of the EMS that the nine countries bring their inflation rates closer together. Prices have been rising much faster in Britain, France and Italy than in West Germany -- where the current inflation rate is hovering near ten percent. The Community leaders are hoping to bring their inflation rates down to the level currently maintained by West Germany.