§ Sir Richard BodyTo ask the Chancellor of the Exchequer what assessment he has made of sterling's performance against the criteria set for membership of economic and monetary union by the European Commission; and if he will make a statement. [66162]
§ Ms HewittIn line with the Council decision of 3 May 1998, under Article 109j(4) of the Treaty, the Government accept that exchange rate stability is an important precondition for membership of the single currency. The Government are committed to ensuring a stable and competitive exchange rate for sterling over the medium term, consistent with our objective of price stability. The Government have no intention of rejoining the ERM.
§ Mr. MacleanTo ask the Chancellor of the Exchequer if he will list those(a) member states and (b) community bodies which (i) support and (ii) oppose Her Majesty's Government's position that UK accession to the single currency does not require prior participation in an exchange rate mechanism. [66378]
§ Ms HewittThe Government have no intention of rejoining the ERM. The Government have never believed that the Treaty provisions on membership of the ERM could be applied mechanically given the changes that have occurred since the Treaty was agreed in 1991. The Recommendation of the Commission under Article 109j(2) in March 1998 and the Decision of the Council under Article 109j(4) in May 1998 both avoided a mechanical approach to the application of the criteria, allowing for the exercise of judgment provided by the Treaty.