Since a very early age I have been a keen and dedicated proponent of European unification and integration. Born in Scotland during the final stages of the Second World War, I had the opportunity of travelling throughout most of Western Europe during my youth and of growing up without the prejudices towards other European nations, which were prevalent at that time. I also had the benefit of obtaining my education not only in my native land, but also in Germany and France. During the thirty years of my professional life I have lived and worked in Switzerland, Germany, France, Denmark and finally the Principality of Monaco, which, in spite of its limited size, is one of the most cosmopolitan states in the world and which, intellectually and culturally, continues to play an invaluable role towards mutual understanding among the nations.

Throughout my career as an international businessman I have also had the opportunity of working in a multinational environment and have been privileged to be able to participate, in my own modest way, in the economic unification of our continent, which has already to a large extent been realized by the business and financial sectors. I have also had the opportunity of travelling extensively throughout the world, particularly to North America, South-East Asia, Australia and South Africa ; these experiences have contributed to my long-held conviction that the enormous potential and influence of the European Union in the political, economic, cultural and moral spheres can only be fully realized once our continent is able to speak and act with one voice.

The process of European unification was commenced very shortly after the Second World War ; Monnet, Schuman and, surprisingly, the great national patriot Churchill, were among the earliest proponents. Adenauer and de Gaulle subsequently made a major contribution to the unification process by establishing the Franco-German friendship treaty, the aim of which was to eliminate for all time the enmity, rivalry and risk of war between the two most powerful states on the European continent. If we, their heirs, are to lay to rest the nationalistic demons of the past, which have caused so much human and material destruction and havoc throughout the history of our continent, the nations of Europe must be united and integrated within the framework and structure of a federal European state, which will guarantee the rights of the smaller member states and ensure that no single ethnic, national power will ever again be in a position to dominate the continent.

To date, not all European citizens share these aims, particularly the so-called Eurosceptics (predominant in the United Kingdom, but also active in varying degrees in many of the other member states of the European Union). These Eurosceptics, detached from present-day geopolitical and economic realities and mainly poorly informed, are often motivated by age-long prejudices towards former historical enemies and rivals as well as by a romantic and emotional attachment to past national glories which now belong to the history books. Admittedly, the European Union, in its present stage of development, is by no means perfect and much has still to be implemented before a true federal, democratic union can be achieved. However, if we were now to follow the counsel of the Eurosceptics, the result would undoubtedly be economic protectionism and thus in the longer term a sharp decline in prosperity, a deterioration in the relationships between European states and the domination of the continent by one or possibly two national powers (Germany and France). In such a scenario, which ironically the Eurosceptics fear the most, the prospect of a future European war can never be eliminated.

Economic and Monetary Union (EMU) is a major component of a truly federal state (the other major elements are common foreign affairs and defence policies as well as a federal law governing the affairs of the federation). Economic and Monetary Union is also an indispensible component of a single market ; without such a discipline, which eliminates the distortion of competitive devaluations and interest rate differences, it would not be possible to enjoy the free movement of goods, services, capital and individuals within a single market. The alternative would constitute the raising of protectionist barriers such as import tariffs, foreign exchange restrictions, limitations with regard to the free movement of individuals, etc. To understand this in perspective, one needs only to imagine what would happen to the United States of America if each of the 50 states were to have full sovereignty with regard to the valuation of their own dollar and the level of their own interest rates !

Earlier this year I was requested to give a lecture on Economic and Monetary Union ; during the preparatory phase I was appalled at the lack of knowledge about this subject at all levels and in all member states of the European Union ; very few businessmen and bankers are well informed about EMU, and the awareness of the general public, barring only a few rare exceptions, is close to nil. Above all, very few national politicians, including many of ministerial rank, appear to fully comprehend the necessity and implications of EMU. This general lack of knowledge and information has prompted me to publish this short book. If it should succeed in giving its readers even a basic understanding of the crucial significance of Economic and Monetary Union, the effort of writing it will have been worthwhile.

Martin Ricketts

Monte-Carlo, December 1996