Abstract

The democratic revolutions in Eastern Europe, the speedy unification process of the two Germanies, growing economic disarray in the Soviet Union and the Gulf War put great pressure on the European Community - and raised high expectations throughout 1990. The external challenges initially seemed to slow down the internal integration process. But by the end of 1990 the Twelve committed themselves to further European political union and European economic union culminating into a central bank and a common currency. The two intergovernmental constitutional conferences on EPU and EMU were installed on December 15. The execution of the internal market programme is on schedule with 70% of the directives adopted by late 1990, although the Commission expressed concern about timely transposition of the directives into national law. The EC's record on external relations is mixed : appreciation for its stepped-up cooperation with Eastern Europe, criticism for its tough stand on agriculture at the Gatt-conference, weak diplomatie performance during the Gulf War.