§ Mr. Teddy Taylor
asked the Chancellor of the Exchequer if the proposed increase in borrowing by the EEC is subject to the approval of the Council of Ministers; and if Her Majesty's Government have formulated a policy on this request by the EEC.
§ Mr. Lawson
The Finance Council on 20 October discussed a number of revisions to the Community loan mechanism established by regulations 397/75 and 398/75, including raising the ceiling on the Commission's operations under this mechanism. No agreement was reached. Any amendment to these regulations requires Council approval, but no formal proposal has yet been made.
Mr. Teddy Tayor
asked the Chancellor of the Exchequer what is the total amount of borrowing to date of the EEC; what further limit of borrowing is proposed by the Community; and what effect this further borrowing will have on the policy of Her Majesty's Government directed to controlling borrowing and thereby reducing interest rates.
§ Mr. Lawson
To date the European Communities has borrowed a total of 2,285 million eua. As I explained in my reply to my hon. Friend's earlier question, no formal proposal has yet been made to increase the Communities' borrowing. I would not expect further borrowing by the Communities to have a noticeable effect on the level of United Kingdom interest rates.