SUMMARY
The Jamaica Agreement essentially grants every country the freedom to determine its own exchange rate system, thus confirming a situation characterised by a wide variety of national arrangements. This situation has given rise to considerable uncertainty as regards trade and capital movements. The present work argues that greater stability in financial arrangements among the EEC countries would reduce uncertainty and contribute to harmonious economic development in the European area. Specifically, the author makes proposals for the adoption of a three-pronged approach to lessening uncertainty in trade and payments and to strengthening the European integration process. The proposals include establishing rules for exchange rate adjustments, harmonising national economic policies and creating a parallel currency, the Europa. JEL: E42, F36, F33