Abstract

The Twelve Member States agreed in December 1991 in Maastricht on an EconomicMonetary Union, including a single currency and an autonomous European central bank by the turn of the century, and on "an ever closer union among the peoples of Europe". The structure of the European Political Union resembles a temple with three pillars : more powers for the European Parliament on a wider ranger of policy issues, a separate framework for a common foreign and security policy, and intergovernmental cooperation on justice and internal aff airs. The new Treaty wilt replace the Treaty of Rome only after ratification in all twelve member states. White EMU and EPU dominated the public agenda, the internal market programme was drawing to a close with nearly all White paper measures adopted. Emphasis shifted to implementation problems. The prolonged conflict between Commission, Parliament and Council on the 1992 budget gave a taste of increasing tensions on budgetary issues, especially between "northern" and "southern" interests. That divide wilt deepen with or without ratification of the Maastricht Treaty. The budgetary battle of 1991 was partly on external relations. The external activities of the EC were all but successful in 1991: disparate conduct in the Gulf War, failure to contain conflict in Yugoslavia, near-collapse of negotiations with the EFTA countries, deadlock in Gatt-talks and the threat of a trade war between the three trade blocks. Ibe European Common Agricultural Policy remained a major stumblingblock in the Gatt-talks. The Commission proposed a radical reform package for CAP, fiercely opposed by France until the end of the year.