Monetary problems in Europe consequent to the oil crisis
- Author(s):
- Parliamentary Assembly
- Origin
- Assembly debate on 15 September 1976 (8th Sitting) (see Doc. 3814, report of the Committee on Economic Affairs and Development). Text adopted by the Assembly on 15 September 1976 (8th Sitting).
- Thesaurus
The Assembly,
1. Taking note of the report of its Committee on Economic Affairs and Development on the monetary problems in Europe consequent to the oil crisis (
Doc. 3814) ;
2. Realising that the oil crisis has had deep repercussions, although in different ways, both on developed and developing oil-importing countries ;
3. Aware of the unprecedented imbalance in international payments resulting from the oil price increases and from the recent economic recession ;
4. Recognising that, thanks to various forms of international monetary co-operation, it has so far been possible to prevent too far-reaching disruptions in international payments and trade flows ;
5. Realising that the complex consequences of the oil crisis call for a series of complementary policies in the fields of finance, energy, trade and development assistance ;
6. Welcoming the important contribution made by the international community, including the OPEC countries, in favour of the most seriously affected developing countries, and stressing the importance of continuing to assist them in their gradual adaptation to the new economic situation ;
7. Hoping that the decision of the Interim Committee of the Board of Governors of IMF, taken at Jamaica in January 1976, to legitimise flexible exchange rates, will contribute towards the restoration of more stable economic and financial conditions in the industrialised countries, in particular those with higher inflation rates, so as to facilitate an early return to more stable exchange rates, with a view to avoiding erratic fluctuations through better co-operation among national monetary authorities ;
8. Underlining the interest for producers and consumers alike in remunerative price levels for scarce energy and raw material resources, so as to use them as rationally as possible and in a way compatible with the world's long-term ecological needs :
9. Taking note of the resolution on the integrated programme for commodities adopted by the 4th Session of UNCTAD (Nairobi, May 1976), the implementation of which would constitute a first step towards more stable and rewarding export revenues from certain products for commodity-producing countries ;
10. Being of the opinion that a system of organised supply of oil should not be opposed, on condition that :
it is based on more stable terms of trade between industrial and oil producer countries, and will not be used as a political or economic weapon ; and
that monetary surpluses of oil producer countries be invested or recycled in a way compatible with the monetary and economic interests of the world at large,
11. Invites the governments of all the countries concerned :
a with regard to co-operation among industrial countries :
to increase their energy self-sufficiency by sustained action in the fields of energy conservation, research into alternative sources and the more rational use of energy, measures called for by the scarcity of natural resources and their new price levels ;
to co-ordinate more closely their economic policies, with a view to overcoming high unemployment and keeping inflation within acceptable boundaries ;
to ensure that a policy with a stronger environmental emphasis does not have a divisive effect in Europe ;
b with regard to wider international co-operation :
to develop co-operation among major trading areas, with a view to maintaining fairer and more stable terms of trade ;
to increase multilateral financial cooperation for the investment or recycling of surplus oil funds in a way compatible with the needs of both the developed and developing countries ;
to strengthen monetary co-operation among central banks, in order to minimise speculation and erratic fluctuations of exchange rates ;
to continue working towards the establishment of an international monetary system based on a truly international currency and managed collectively by the community of nations, in order to guarantee the continuous functioning of an efficient world trade system benefiting all countries.
