EXCHANGE CONTROLS: EEC TREATY

HL Deb 04 April 1979 vol 399 cc1977-8WA

Lord O'HAGAN

asked Her Majesty's Government:

Whether British exchange control are in conformity with the Treaty of Rome; and what purpose they now serve.

Lord McCLUSKEY

To the extent that our present exchange control restrictions do not conform with the EEC Directives on capital movements, we are authorised to maintain them by the Commission's Decision of 22nd December, 1977, under Article 108(3) of the EEC Treaty. The broad purpose of the controls is to protect the balance of payments against the possibility of damaging capital outflows. The controls are kept under continuous review and modified whenever appropriate in the light of our balance-of-payments position generally.