The National Negotiation of European Monetary Integration: Debates and Decisions in the Federal Republic of Germany, 1979-1992

• Applicant: Dr. Ralf Ahrens
• Subject Area: Economic and Social History
• Term: since 2024
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 546821301

This proposed project reconstructs negotiation processes and decisions on (Western) European monetary integration in the Federal Republic of Germany from the late 1970s to the early 1990s. In contrast to the existing literature, we do not focus on the negotiations between representatives of different states or central banks and the Brussels institutions. Instead, we aim to examine the case of Germany, one of the most important EC member states, and how its positions, as represented in international currency diplomacy, came about and changed, not least due to repercussions from the international level. At the same time, this raises questions about the options for political intervention in times of increased market liberalization: The period under investigation extends from the entry into force of the European Monetary System in 1979 to the signing of the Maastricht Treaty in 1992, which laid down the timetable for the completion of European Economic and Monetary Union, the convergence criteria for the participating economies, and the principles for the establishment of the European Central Bank. During this phase, the single market project and the preparations for monetary union aimed at an increased opening of financial markets, while discretionary state intervention was to be pushed back as far as possible. The project furthermore aims to review the relevance of the caesuras of 1982 and 1990 usually emphasized in German political and economic history. Monetary integration is understood as an open historical process that was driven by the negotiation of programs, interests, and positions of power. Politicians, ministerial officials, and representatives of the central bank, as well as economic experts, are considered as actors in these negotiations and the resulting decisions. Our focus goes beyond the frequently emphasized tension between political and economic integration. Firstly, we analyze which economic arguments for and against certain integration measures were put forward by which actors, which general economic schools of thought they can be assigned to, and how and why certain positions changed over time and/or prevailed. Secondly, the question arises as to what relevance economic arguments actually had in the formulation of concrete currency policy. In this way, the study also aims to examine the practice and limits of the ‘scientification of politics’ in this field. The source materials include archival documents as well as published material, in particular economic publications.

• DFG Programme: Research Grants