HC Deb 13 March 1997 vol 292 cc316-8W
15. Mr. Gordon Prentice

To ask the Chancellor of the Exchequer what assessment he has made of the degree of resistance to the proposed introduction of a single currency in each of the member states of the European Union. [18536]

Mr. Kenneth Clarke

That is a matter for each member state.

Mr. David Shaw

To ask the Chancellor of the Exchequer (1) what proposals have been assessed by (i) European institutions and (ii) member Governments for a common basis of calculating inflation in each EU member state; and what assessment he has made of the implications of such proposals for(a) United Kingdom Government expenditure and (b) United Kingdom pensioners' incomes; [17358]

(2) what reports on the determination of price indices in each EU member state have been evaluated by which European institutions in connection with the management of the proposed single currency; and if he will publish those reports. [17357]

Mr. Oppenheim

Protocol 6 to the Maastricht treaty states that the criterion on price stability will be assessed using consumer price indices on a comparable basis. Eurostat has now developed a harmonised index of consumer prices—HICP—for member states, and the first full set of figures was published on 7 March.

Eurostat commissioned a report on the similarities and differences between national consumer price indices. The report, published by Eurostat in 1989, covered the methodology used by each country and set out the need for harmonised indices.

The proposed legislation for the HICPs, in the form of draft regulations, was first discussed at a working level by technical representatives from each member state's national statistical institute at meetings chaired by Eurostat. The European Monetary Institute and the Commission were also present at these discussions as non-voting members and their opinion was sought before any legislation was agreed. The legislation in its final form was voted on by the Statistical Programme Committee using standard EU voting procedures.

The Government have an obligation to uprate pensions and benefits by the RPI.

Mr. Malcolm Bruce

To ask the Chancellor of the Exchequer if it is his policy to be hostile to the principle of a single European currency; and if he will make a statement. [17500]

Mr. Clarke

The Government believe that it is in Britain's national interest to keep our options open, continue to negotiate and decide at the appropriate time whether or not it would be in Britain's interests to participate in a single currency.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what assessment he has made of the implications of the increase in the value of the dollar in the last year for the stability of the proposed single European currency. [18867]

Mr. Clarke

The increase in the value of the dollar in the last year reflected the judgment of the market of the value of that currency vis-a-vis other currencies; last year's increase has no implications in itself for the future stability of the proposed single European currency.

Mr. Matthew Banks

To ask the Chancellor of the Exchequer what plans he has to update the convergence programme produced by the United Kingdom in April 1996. [20479]

Mr. Clarke

An updated convergence programme was submitted today to the European Commission. Copies of the convergence programme have been placed in the Libraries of both Houses.