§ Mrs. MahonTo 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. NelsonThere 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.