Removing Obstacles to Integration

Abstract

European integration played an important role in liberalizing banking and financial markets. Based on archival material from central banks, commercial banks, and bankers’ association in France and the United Kingdom, this chapter sheds light on the role of the European Economic Community in three areas: the realization of a common market in banking, the liberalization of capital movements, and the broader financial integration in the EEC. It argues that in the EEC, financial liberalization had two motives: the deepening of the Common Market, and consolidation of European monetary cooperation/integration. Removing obstacles to integration was the main way used to achieve these goals. The chapter further challenges the work of Rawi Abdelal, which overstates the role of France and downplays the role of the United Kingdom in the liberalization of the financial sector.