HC Deb 19 July 1979 vol 970 cc1984-5
22. Mr. Straw

asked the Chancellor of the Exchequer what steps he has taken towards the United Kingdom's membership of the European monetary system; and when he intends that the United Kingdom should become a full member.

Sir Geoffrey Howe

Although we do not participate in the exchange rate arrangements of the EMS, we are members of the system and have recently deposited 20 per cent. of our reserves against European currency units. We shall consider our position on the exchange rate arrangements later in the year.

Mr. Straw

Does the right hon. and learned Gentleman recall giving an interview in April in the monetary letter " Europe " in which he expressed substantial reservations about EMS? Does he still hold those reservations, and, if so, what are they?

Sir G. Howe

Everybody who has considered this subject with any care recognises that the arguments are by no means all one way and has some reservations about them. That is why my right hon. Friend the Prime Minister has made it clear that we shall be reviewing our position after the matter has proceeded as far as September.

Mr. Budgen

Does the Chancellor agree that to enter the EMS system fully would be to take a significant step along the road towards a united federal Europe?

Sir G. Howe

I know that that view is held by some people, including my hon. Friend. It is not the view taken by those who participate fully in the system at the moment.