Europe: Then Will It Live . . .

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governments.

Thus from Europe's grimiest coalfields and bloodiest battlefields grew the great experiment in unity. For, argued Monnet in 1955, why not expand the Coal and

Steel Community to embrace the total economic life of the six members and create a European Economic Community, including a Common Market and an atomic energy pool, Euratom. France had doubts but was swept along by the other members. In 1957 the Common Market was ratified in the Treaty of Rome—and no one missed the memories of past unity which the name of that city still evoked in Europe. A year later, France was in serious economic straits, and De Gaulle had come to power with scornful views on supranational ventures. Economists predicted gloomily that France would have to delay the first, crucial 10% tariff cut. But France met its commitments on time, and, under De Gaulle, continued as an enthusiastic Common Market partner.

Largest Importer. In less than four years since it began operating, the Common Market has become one of the fastest-growing economic units on earth. Industrial production soared an astonishing 12% last year alone. Gross national product zoomed some 7% v. the U.S.'s 4½% in 1960. Russia claims a somewhat larger G.N.P. than the Common Market, but taken together, the U.S., the Common Market, and (if the merger is completed) the United Kingdom form a potential economic force that could overwhelm the Russians.

The Common Market is now the world's largest importer of all kinds of goods ($30 billion worth last year), the second largest exporter of manufactured goods. Its monetary reserves have swollen to more than $16 billion, nearly equal the U.S. reserves of $18 billion. In its internal drive toward economic integration, the Common Market has performed even more spectacularly. Trade among the Six has increased 45% in three years, this year is averaging $1 billion per month. As a result, the Six have reduced tariffs among themselves by 30% on almost every commodity except agriculture and petroleum products, are speeding up their timetable for more cuts. What was initially to be a twelve-year transition to an integrated economy is now scheduled to take place in eight years or less.

Cleaned Out. In a protectionist Europe, where everybody from parsnip growers to paving-stone makers was sheltered by tariffs, businessmen almost to a man fought the Common Market right up to the moment it became fact, fearful that it would put their protected industries out of business. Monnet's answer was to bring the Market into existence gradually, reducing tariffs at easy stages to allow industries time to adjust to the new competition. It has worked surprisingly well. In Belgium, some inefficient coal mines have shut down. In France, whose industry was the most highly protected of the Six, perhaps 20% of the marginal electrical firms and 30% of the small textile shops (up to 20 employees) have shut down; most had been teetering on the edge of bankruptcy for years. But France has also had pleasant surprises. While French industry always feared that it could not compete with the Germans, particularly in the electrical field, the French have found that they can not only compete in price and quality, but often beat the Germans at their own game.

Jean Monnet's creation is also working a revolution in the taste and preferences of the West