Common Upbeat

Every one is doing it. The economies of the European Common Market nations, Britain and the U.S. are all rising in a rare parallel movement. Last week in Geneva, the United Nations Economic and Social Council reported that the world's economic prospects have turned around sharply since 1962 because of unexpectedly strong consumer spending, and that "economic activity in the early months of 1963 was marked by the vigor of its upthrust." In Brussels, the Common Market's quarterly survey of businessmen's expectations found "a climate more favorable" than a few months ago.

Sharper Competition. The Common Market economies at midyear are growing at 4.5% on an annual basis.-- Britain's growth rate is edging close to the 4% charted by Chancellor of the Exchequer Reginald Maudling, and some economists predict that it will exceed 6% in the second half. Partly because a 2% unemployment rate has steadied labor costs and export prices, Britain's exports in the first half rose 6% over the same period in 1962, its balance-of-payments surplus hit a four-year high, and the pound sterling strengthened.

The situation was somewhat different on the Continent: "overemployment" and inflationary wage jumps (as much as 10% in France this year) held back exports, gave the Common Market a first-quarter trade deficit of $750 million, and brought about a much more competitive export situation between the Common Market, Britain and the U.S. Rising wages stimulated a consumer-goods boom that has kept the market growing despite a general slackening in capital goods investment. Common Market steel production, at 39 million tons in the first half, was the same as last year's first-half rate, but chemical production is rising by 10% and auto output 15%, should reach almost 5,000,000 cars this year. In growth of gross national product, the Common Market's leaders this year will be Italy (up 6%), France (5.5% ) and The Netherlands (4%), while its laggards will be West Germany (3.5%), Belgium and Luxembourg (3% ).

Closer Union. Prosperity and new markets are helping to tie together the North Atlantic economies. Last week the U.S. Commerce Department reported that U.S. capital investments in Western Europe during the first quarter of 1963 rose to $416 million--double last year's quarterly average. The Common Market economies are moving closer together, and last week the Six carried out another scheduled 10% industrial-tariff cut among themselves, bringing their total tariff disarmament to 60%. Equally important, the Common Market Commission recommended that its members adopt another major unifying proposal by Commission Vice President Robert Marjolin of France.

The Marjolin Plan calls for the Six to closely coordinate their banking, budget and economic planning policies to head off any tendencies toward recession or runaway inflation.

This file is automatically generated by a robot program, so reader's discretion is required.