HC Deb 17 July 1995 vol 263 c891W
Sir Teddy Taylor

To ask the Chancellor of the Exchequer what considerations underlay his policy statement of 10 July in respect of the non-requirement of a two-year participation in fixed exchange rates as a prelude to entry to a single currency; and if he will make a statement. [34420]

Mr. Kenneth Clarke

[holding answer 14 July 1995]: It is not clear how the exchange rate criterion in the treaty on European Union will be interpreted. The treaty was negotiated at a time when the exchange rate mechanism operated under very different rules from those in force today. The interpretation of the convergence criteria, including the exchange rate criterion, will be considered by the European Commission and the European Monetary Institute, when preparing their reports to the Council of Ministers under article 109j(1), and thereafter by the Council itself, when it assesses those reports under article 109j(2).

Sir Teddy Taylor

To ask the Chancellor of the Exchequer if it is the aim of Her Majesty's Government to seek to rejoin fixed exchange rates. [34421]

Mr. Clarke

[holding answer 14 July 1995]: The Government recognise the value of stable exchange rates but do not set target rates.