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By Sir Alec Cairncross, Herbert Giersch, Alexandre Lamfalussy, Giuseppe Petrilli, Pierre Uri (auth.)

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Extra resources for Economic Policy for the European Community: The Way Forward

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4. The Economist, London, 29 May 1971, p. 15. As for the position of Harold Wilson, as Prime Minister of the United Kingdom after the 1974 general election, he reaffirmed the opposition to a federal European union that was made clear when his previous Government (1964-70) launched the negotiations on British membership of the European Community that were concluded by the Heath Government. 'Whatever the long-distance future may hold,' Mr. Wilson told the House of Commons on 22 May 1969, in the course of rejecting proposals for an Anglo-French nuclear force, 'a European federal state is not a reality.

This would call for the setting up at once of a central monetary authority with wide powers and the subordination to it of each of the national central banks. The political powers of such an authority, as already mentioned, would be very far-reaching and would have to be sustained by a deep sense of community of interest. Divergent trends within the member countries usually assert themselves both in relation to the level of costs, given the limited connection between national labour markets, and in relation to the pressure of demand, given the vagaries of demand patterns and the continued autonomy of national budgets.

Wilson told the House of Commons on 22 May 1969, in the course of rejecting proposals for an Anglo-French nuclear force, 'a European federal state is not a reality. ' Parliamentary Debates (Hansard), Official Report, House of Commons, London, Vol. 784, No. 121, 22 May 1969, c. 654. As an immutable factor in the European situation, the British attitude has been neatly stated by a German observer: 'Wilson's rejection of any form of European federation is as authentic as was Churchill's, Eden's and Macmillan's and springs from the same source.

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