HC Deb 05 June 1992 vol 208 cc652-3W
Mrs. Mahon

To ask the Chancellor of the Exchequer what contingency plans he has made to deposit funds in Europe if public borrowing exceeds the limit set by the Maastricht treaty.

Mr. Nelson

There is no need for such contingency plans. The Maastricht treaty does not set a limit on public borrowing. A member state would have to be judged to be running an "excessive" budget deficit for sanctions to be imposed, and such sanctions will not apply until stage 3 of economic and monetary union, and then only as a last resort. Although the United Kingdom has no obligation to move to stage 3, the Government's policies are designed to avoid running deficits that might be judged excessive.

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