European Monetary Institute (Hansard, 6 February 1995)

§ Mr. Denzil Davies
To ask the Chancellor of the Exchequer what has been the total capital and revenue cost of establishing and running the European Monetary Institute at the latest date for which figures are available; and how much of that cost has been incurred by Her Majesty's Government.

§ Mr. Nelson
Article 16 of the protocol on the statute of the European Monetary Institute—EMI—annexed to the Maastricht treaty, provides for member states' central banks to make contributions towards the capital resources of the EMI. The resources will be used to generate an income necessary to cover the expenditure of the EMI. The share of the EMI's resources paid by each central64W bank is calculated according to each member state's population and GDP.—as set out in article 29 of the protocol on the statute of the European system of central banks.
In accordance with article 16 of the EMI protocol, the Council of the EMI has determined that the total capital requirement needed to generate income sufficient to cover the EMI's budgeted expenditure is 615.6 million ecu. The Bank of England's share is 15.35 per cent. The Bank has accordingly contributed 94.5 million ecu—£72.7 million at the end-December 1994 exchange rate. Prior to the capital requirement being established by the council of the EMI the Bank contributed 3.0 million ecu—£2.4 million at the end-December exchange rate—towards the EMI's set-up and running costs during 1994.
The Bank of England made its contribution to the EMI out of its own resources. The central banks of Germany, France and Italy have made larger contributions than the Bank of England.
The budget for the EMI will be published in its annual report in April 1995.

§ Mr. Andrew Smith
To ask the Chancellor of the Exchequer what consultations the Government have undertaken with the European Monetary Institute as provided for in article 109f(6) of the treaty on European Union.

§ Mr. Nelson
In accordance with article 109f(6) of the EC treaty the Government have notified the European Monetary Institute of a number of amendments to the Building Societies Act 1986, which are to be made by an order under the Deregulation and Contracting Out Act 1994.

§ Mr. Andrew Smith
To ask the Chancellor of the Exchequer when he expects the European Commission and the European Monetary Institute to report to the European Council as required by article 109j(1) of the treaty on European Union; and what discussions Her Majesty's Government have had with the Commission and the EMI on the preparation of the report in respect of the United Kingdom.

§ Mr. Nelson
No date has been set for the reports from the Commission and EMI required by article 109j(1) of the treaty. But for the Council to make the decisions set out in article 109j(3) by 31 December 1996, reports will need to be prepared earlier that year. Her Majesty's Government have had no discussions with the Commission or the EMI about the reports they will prepare.