The E.E.C. grows to 12

Press, 24 January 1986, Page 16

The E.E.C. grows to 12

January is the month for joining the European Economic Community. Britain, Ireland, and Denmark joined the original six of France, West Germany, Luxemburg, Belgium, the Netherlands, and Italy in January, 1973. Greece made the count 10 in January, 1981. On January 1, this year, Spain and Portugal became members. The Community might have included 10 members at the time Britain, Denmark, and Ireland joined; but although Norway had signed the Treaty of Accession in 1972 with the other three, Norwegians rejected membership when they held a referendum on the eve of joining the E.E.C.

Spain and Portugal do not have to comply with all the Community’s laws immediately and there is a transitional period before they receive the full benefits of the agricultural support systems of the E.E.C. The question of how the addition of Spain and Portugal will change the E.E.C. has been widely discussed. Some within the E.E.C. fear that it will mean a tilt in E.E.C. interests towards the Mediterranean. It seems likely that the poorer olive-growers and wine-makers of the southern E.E.C. countries will gain at the expense of the richer, temperate farmers of the northern countries. It would seem unduly optimistic, however, to believe that this will lead to a radical reform of the Common Agricultural Policy so that fanners are given income support rather than production subsidies.

Nevertheless, Spain and Portugal, when the transition period is over, will place greater strain on the Community Budget. Spain and Portugal between them have a population of 48 million and a gross domestic product of SUSIBO billion. Their additional weight in the Community will not change the focus southwards against the weight of West Germany, Britain, and France, which have a combined population of 172 million and a gross domestic product of SUSISOO billion.

Spain and Portugal were admitted to the

E.E.C. because they now have democracies and there was no sound reason for keeping them out. The E.E.C. had the political motive from its beginning of drawing Europe together so that the wars of this century would not be repeated. In admitting Spain and Portugal the motive of encouraging democracy was more compelling than the economic advantages. Both countries favour the idea of the E.E.C. moving towards a political union and they will presumably throw their weight behind moves which advance this notion. The bigger the E.E.C. gets, however, the greater are the difficulties in obtaining cohesion and the Community may resort more to taking majority votes on issues rather than relying on consensus and on preserving the veto of individual countries.

Yet before January is out the E.E.C. has struck a snag. Hopes were high for some changes to the Treaty of Rome and other basic E.E.C. treaties. The changes sought to improve the common market aspect of the E.E.C., to give the European Parliament a few more powers, and to formalise foreign policy co-operation. The Danish Government needed the approval of the Danish Parliament and this week the Parliament refused to back the changes. The date for signing the reforms has now been postponed from January 27 to February 17; but this may reflect E.E.C. optimism rather than a definite signing date. The Danes may hold a referendum on the changes and this would further delay the reforms, which were intended partly to make the E.E.C. less cumbersome with its 12 members. The possibility also exists that Denmark, which has remained more devoted to Nordic than to E.E.C. ideals, may, like Greenland, one of Denmark’s counties, which has home rule, itself secede from the E.E.C. If this becomes likely, the E.E.C. will also have to ponder the implications of a member State’s opting out at the very moment the Community is expanding.