Prospects for the direct integration of E.E.C. capital markets

Abstract

Over the past decade the European Economic Community has made incredible strides toward the realisation of the goals established by the architects of the Rome Treaty. The achievement of a customs union will occur a full year and a half in advance. In addition, progress has been made toward the achievement of economic union and considerable strides have been made toward uniform policies in the areas of transportation, labour, taxation and company organisation. Probably the most difficult area in which member countries have sought agreement is that of capital movements. The present article analyses the prospects for the integration of capital markets and the removal of restrictions on capital movements within the EEC. The author considers the implementation of Article 67, the origins of obstacles to further liberalisation, and the prospects for the third directive.

JEL: F15, F36