L'Union Européenne des Paiements

[eng] The circumstances leading up to the establishment of the E.P are summarised and the essential features of its mechanism are examined one by one multilateral compensations automatic grants of credits and gold settlements allowing the regulation of temporary fluctuations in the balanec of payments of the Western European countries and tlieir associated mone tary areas The analysis brings out the advantages of this multilateral system which has enabled the European countries despite the otw level of their currency reserves to develop their visible and invisible trade with each other on non-discriminatory basis At the present moment the member countries of O.E.E.G are examining the ways in Iwhich the E.P system might be improved on the occasion of its prolongation for further financial year at the same time return to convertibility of certain European currencies is envisaged The present analysis clarifies the origins of the operating difficulties of the Union and of the criticisms Which are levelled at it