§ 13. Mr. Tim Rentonasked the Chancellor of the Exchequer whether he wishes sterling to rejoin the European currency snake.
§ Mr. Denzil DaviesNo. I very much doubt whether it would make sense for sterling to rejoin the European snake in its present form.
§ Mr. RentonWould it not be more honest to say that our chances of rejoining the European currency snake are now non-existent? Is it not a matter of very great disappointment to everyone in the House that yesterday's measures have notably failed to stabilise sterling, which is the one thing they needed to do?
§ Mr. DaviesI do not see what joining the European currency snake has to do with the problems of sterling or the problems of the British economy. I should have thought that, rather than talking of trying to join some kind of artificial arrangement, the hon. Gentleman should recognise that the main problems we face are to improve our manufacturing base and industry to enable us to compete with European manufacturers on a proper basis.
§ Mr. MartenDoes the Minister's answer about the snake decision mean that monetary union is now a forgotten cause?
§ Mr. DaviesI have no doubt that it is forgotten in some quarters and that in other quarters people are still thinking about it. While we have divergent economies and different nation States in Europe, I do not see how we can have economic and monetary union.