HC Deb 07 February 1996 vol 271 cc311-2
1. Mr. Nigel Griffiths

To ask the Secretary of State for Foreign and Commonwealth Affairs what recent talks he has had with his EU counterparts on the convergence criteria under the Maastricht treaty. [12343]

The Secretary of State for Foreign and Commonwealth Affairs (Mr. Malcolm Rifkind)

I have regular contacts with my counterparts from other member states, during which we discuss a wide range of European Union issues, including economic and monetary union.

Mr. Griffiths

Does the Secretary of State have regular contact with the Home Secretary, who wrote the foreword to a pamphlet from the Centre for Policy Studies which was published on Monday and which opposes monetary union? Does the Secretary of State agree that economic convergence will cause heavy unemployment and heavy new taxes?

Mr. Rifkind

I have not yet had the pleasure of reading the pamphlet, but I have no doubt that the Home Secretary's comments will be very much in line with the Government's view on that important issue. The whole question of convergence depends on whether there is a real and sustainable convergence of the countries involved. Clearly, such an important issue ought to be determined on the basis of confidence that such a policy would succeed with the objectives that have been laid down.

Mr. Renton

Following that reply, does my right hon. and learned Friend agree that the convergence criteria were drafted by central bankers, but their implementation will depend on politicians who are elected by ordinary citizens? In that context, has he noticed in any recent discussions that his French, German or Italian counterparts think that the criteria should be revised?

Mr. Rifkind

Different views have been offered by different people, but I have noted that the German Government in particular have made it clear that they attach supreme importance to the convergence criteria being satisfied. They have said that they have no intention of seeing any weakening in the convergence criteria, and I think that that is a responsible approach.

Mr. Shore

Are not those convergence criteria just an arbitrary package of deflationary measures designed to achieve an unwanted, federalist objective of a single currency? Is it not time that the Government made plain to our partners in the European Community that we have no intention whatever of burying the pound sterling in a Euro-currency, either in 1999 or on any other occasion?

Mr. Rifkind

The existence of the convergence criteria is a recognition that it is crucially important that the question of a single currency should be determined on sound economic considerations, and not as a result of any political doctrine.

Mr. Budgen

Will my right hon. and learned Friend explain whether it is his understanding that the third criterion—that we should have been in the exchange rate mechanism for two years before we can move any further towards a single currency—still applies?

Mr. Rifkind

I have heard the view widely expressed that the changes in the exchange rate mechanism since that condition was laid down, and the fact that there is now a wide band between the various members of the ERM, mean that much less value can be attached to that condition than was the case in the past.