§ Mr. Llew SmithTo ask the Chancellor of the Exchequer what proposals he has drawn up in regard to recital 13 of the European Commission's draft regulation on surveillance and co-ordination of budgetary positions of European Union member states in respect of the Maastricht treaty articles on economic and monetary union. [6790]
§ Mr. Kenneth ClarkeThe text of the draft regulation remains to be negotiated by the Council of Ministers in due course. I now expect these negotiations to start early next year. Under the treaty provisions negotiated at Maastricht, no new economic policy obligations can be imposed on the UK unless we decide to join the single currency.
§ Mr. SmithTo ask the Chancellor of the Exchequer if he will make a statement on the implications of the stability pact to be established as part of the preparations for economic and monetary union for levels of employment and security of employment. [6808]
§ Mr. ClarkeI refer the hon. Member to the statements that I made to the House on 25 November,Official Report, columns 21–43, and on 3 December, Official Report, columns 797–813. By helping to ensure a stable macroeconomic environment in the third stage of EMU, a credible and effective stability pact would help provide a strong foundation for employment-creating growth. Negotiations on the details of a pact which might prove credible and effective are continuing.
§ Mr. SmithTo ask the Chancellor of the Exchequer what proposals he plans to put forward in respect of article 109j(3) of the Maastricht treaty. [6830]
§ Mr. ClarkeThe Council of Economic and Finance Ministers agreed at its meeting on 11 November, under article 109j(2) of the EC treaty, that there is not at present a majority of countries which fulfil the conditions for the adoption of the single currency and that stage 3 of economic and monetary union will not therefore start in 1997. It has recommended its finding to the Council, meeting as Heads of State and Government, for a final decision under article 109j(3) in Dublin on 13 and 14 December. This recommendation has been submitted for scrutiny in the usual way.
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§ Mr. SmithTo ask the Chancellor of the Exchequer what response he has made in respect of the European Commission proposals for(a) council regulation on the strengthening of the surveillance and co-ordination of budgetary positions, and (b) council regulation on speeding up and clarifying the implementation of the excessive deficit procedure, COM (96) 496 final of 16 October; and if he will place copies in the Library. [6789]
§ Mr. ClarkeI submitted to Parliament an explanatory memorandum on the Commission's published proposals on 31 October 1996 and subsequently made statements to the House on 25 NovemberOfficial Report, columns 21–43, and on 3 December Official Report, columns 797–813, clarifying the Government's position and approach to the draft stability pact regulations. I also wrote to all Members of Parliament on 22 November 1996 on this same subject, arranging for copies of the letter to be deposited in the Libraries of both Houses.
§ Sir John StanleyTo ask the Chancellor of the Exchequer what assessment he has made of the implications of Britain's opt-out from the final stage of EMU for the application of provisions of the stability pact to Britain while the opt-out is maintained. [5443]
§ Mr. Clarke[holding answer 21 November 19961The Commission's draft regulations on the stability pact imply no sanctions or new policy obligations that can be imposed on those member states that do not participate in a single currency. The UK's opt-out will remain effective for as long as we choose to maintain it.