§ Mr. MitchellTo ask the Chancellor of the Exchequer if he will make a statement on the method of setting exchange rates on entry to the euro for those who joined in January; and how the rate will be decided for the pound in the event of sterling being replaced by the euro. [74124]
§ Ms HewittThe rate at which sterling would enter the single currency would need to be consistent with economic fundamentals in the UK and compatible with sustainable convergence between the UK and the euro-area. This was the basis for the decision on the conversion rates of currencies which joined the single currency in January 1999.
§ Mr. MitchellTo ask the Chancellor of the Exchequer if he proposes to maintain relative stability between sterling and the euro for a fixed period before the national changeover plan comes into operation. [74120]
§ Ms HewittThe Government's policy is for a stable and competitive exchange-rate over the medium term. The Government's fiscal and monetary policy framework will help to deliver the macroeconomic stability needed for a stable exchange rate.