"common Currency" v Solve Nothing!

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an international effort to cut inflation and unemployment and to boost growth...

The claims coming out of last week's heads of state meeting at Bremen were anything but modest.

Chancellor Schmidt of West Germany and President Giscard d'Estaing of France were prepared to hail the summit as the most important event for Europe since the creation of the EEC as a prop to international capitalism.

Even Callaghan, who did his best to have the plans at the summit kept secret, was prepared to share in the glory of the 'success' But all the EEC leaders know full well that the crisis of capitalism that rampages through Europe will not be resolved by ringing declarations and carefully worded formulae.

Nothing signed

Behind the brave speeches it was painfully obvious that nothing had actually been decided; nothing had been signed.

The move towards one currency for Europe-which would eventually displace pounds, francs, deutch marks and the rest has been a longtime dream of the capitalists. If there is one currency there cannot be sudden plunges of exchange rates between EEC countries which damage trade and profits.

When the EEC 'snake' was created-by which all currencies were supposed to be kept within 2.25 per cent of each other-it was seen as a first step on the road to monetary unity: Within a few months France, Italy and Britain had pulled out.

It was impossible then as paper over the enormous weaknesses in some economies and arbitrarily to declare them as strong as West Germany.

Callaghan The new plan is little different in its early stages. But side by side with the moves towards unity the international supporters of capitalism-cheered on by former Labour traitor Roy Jenkins-want to set up a giant new European central fund.

This fund would require member countries to pay in up to 20% of national reserves to create a pool bigger even than the IMF and it is this body which would be given the new currency to handle.

The heads of state hope that such a body, controlling so much of the member countries' reserves would become a new permanent and massive tool to impose spending cuts and wage controls-an external disciplinary force to back up the capitalists in each country.

In their enthusiasm for speedy results the heads of Germany and France are calling for the final details of this vague plan to be signed at the next summit in December and implemented in part on January 1, 1979.

Not once in the post summit euphoria have any of the EEC heads, or for that matter the capitalist press, reminded themselves of the OECD report last week which stated categorically that the economies of Europe were in such bad state structurally that unemployment was going to remain at least at present levels for the next decade, even if there is a slight and temporary decrease.

Anarchy

Nor have the heads of state given even in the vaguest. outline any idea how they plan to dispense with the anarchy of capitalism which has created butter and wine mountains as a result of the Common Agricultural Policy. Nor have they even hinted at In a week where the passed unanimously a resolution opposing any renewal of which countries will cut back their steel production to agreed levels.

Nor have they solved a single one of the thousands of manifestations of the capitalist crisis that caused them to embark on their search for the new Golden Fleece.

Some idea of the gap between the fine words and the banal reality behind the summits might be glimpsed at the Bonn summit this week where the EEC states will be joined by the US and Japan.

Here the Germans will press their case for less protectionism, EEC countries as a whole will press for more protec tionism against Japan and the US will try to persuade everyone else to buy It has already been agreed that Japan should be prepared to spend some of its vast surpluses on European and. American goods-and take the pressure off the governments of these countries.

But when the Jápanese capitalists heard of the plan they strenuously resisted any imports that would hit their markets. The result?

The Japanese government has decided that it will spend currency in the west on: two Boeing jets for state use; buying outright all its Embassies in the relevant countries; and $1 billion paintings by old masters!

It is certain that every single one of the heads of state at Bremen will continue to attack the working class of his own country. Whether the capitalists can bring themselves to a degree of unity heralded by the summit statements last week is an altogether different