The Liberalization of Capital Movements in Europe

1. Front Matter

   Pages i-xviii

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2. Introduction

   • Age F. P. Bakker

   Pages 1-9

3. Capital Restrictions: Classification and General Observations

   • Age F. P. Bakker

   Pages 10-29

4. The Treaty of Rome and Capital Movements

   • Age F. P. Bakker

   Pages 30-57

5. The Role of the Monetary Committee

   • Age F. P. Bakker

   Pages 58-78

6. The 1960s: Lost Momentum

   • Age F. P. Bakker

   Pages 79-108

7. The 1970s: Lost Control

   • Age F. P. Bakker

   Pages 109-146

8. The 1980s: Liberalization and Deregulation

   • Age F. P. Bakker

   Pages 147-186

9. Towards the Full Liberalization of Capital Movements

   • Age F. P. Bakker

   Pages 187-217

10. Towards Economic and Monetary Union

    • Age F. P. Bakker

    Pages 218-248

11. Conclusion

    • Age F. P. Bakker

    Pages 249-263

12. Back Matter

    Pages 264-336

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The member states are facing the choice between either reaping the benefits of increasing integration in a certain area - in this case the capital markets - attended by a significant reduction in national powers of autonomous decision-making and independence, or retaining this national independence enabling them to pursue their own policy objectives with the aid of instruments selected at their discretion. To this question, there is no generally valid answer. The solution is determined by the weight assigned to the benefits, on the one hand, and that assigned to the reduction in national sovereignty, on the other. This, however, is a subjective matter, which is assessed differently in the various countries. OnnoRuding, 1969 1. 1 CAPITAL LffiERALIZATION AND MONETARY UNIFICATION In the 1980s Europe made a leap forward towards the liberalization of capital movements. EEC directives were accepted by all member states obliging them to abolish all remaining exchange controls. This common objective of freedom of capital movements has been consolidated in the Treaty on European Union. Nowadays virtually all restrictions have been lifted. This stands in striking contrast to the state of affairs only a decade ago, when many countries still operated a tight regime. Although the Treaty of Rome provided for the freedom of capital movements, this objective was circumscribed by the clause that such liberalization should only be carried through to the extent necessary to ensure the proper functioning of the Common Market.

• European Community
• European integration
• financial policy
• monetary policy
• monetary union

• Free University, Amsterdam, The Netherlands

  Age F. P. Bakker

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