HC Deb 03 March 1997 vol 291 c490W
Mr. Michael Brown

To ask the Chancellor of the Exchequer if it is his policy that the United Kingdom may enter European currency union without an accompanying fiscal union among participating member states. [17044]

Mr. Kenneth Clarke

Yes. If the United Kingdom were to join EMU we could face sanctions if we were consistently to run up budget deficits of more than three per cent. of GDP and do nothing to correct them. Within that constraint, our budgetary choices would rightly remain a matter for national Governments and Parliaments.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer if he will make a statement on the progress being made by each of the countries of the European Union in meeting the convergence criteria for EMU in 1996. [18123]

Mr. Clarke

[holding answer 28 February 19971:Most countries made progress towards meeting the convergence criteria for EMU in 1996. On the information available at present, my judgment is that it is very unlikely, though not impossible, that performance against the criteria will be sufficiently clear and sustainable for EMU to proceed on 1 January 1999.