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An Assessment of the EC Future

The European Community is presently experiencing a period of relative gloom due partly to the current economic stagnation in Europe but also to doubts about the Maastricht Treaty and the inability of the Community to do anything effective with respect to the war in the former Yugoslavia. There are, however, longer-term indications of a more robust Community, particularly as the dynamic impulses generated by the unified market implementing the Single European Act begin to work through European economies. Dramatic changes in Eastern Europe and the former Soviet Union have presented new problems reflected, for example, in the dilemma of deepening or widening the Community. The near collapse of the Exchange Rate Mechanism in July-August 1993 and continuing speculation on the monetary exchanges may actually provide a further argument for monetary union. Community relations with the United States have remained ambiguous, with continued American support for European integration in the abstract clashing with specific trade disputes.