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It is evident from what has gone before that the Community needs financial resources not only to pay for the day to day running of the Community but also to feed the various funds. We have already referred to the E S F and the ERDF and later, in Chapterwe shall be discussing the most important one of all, the European Agricultural Guidance and Guarantee Fund (EAGGF). In the Community took an important step forward by agreeing to introduce a system which would provide the Community, and specifically the Community budget, with its own source of income. These are referred to as own resources. Another step of great importance was the decision that the European Parliament should be elected by the people and not by the national parliaments. In addition the Community decided to grant the Parliament significant powers over the Community budget this was to prove to be a very significant development! Finally, but by no means least, was the development of the political cooperation mechanism. Although this book is concerned with matters economic it is important not to forget that ardent Europeans had always hoped that the habit of cooperation in the economic sphere would spill over into the political arena that is to say into foreign policy matters.

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