§ Lord Pearson of Rannochasked Her Majesty's Government:
Further to the answer by the Lord McIntosh of Haringey on 25 October (HL Deb, col. 772) whether, given that sterling has fallen in value against the euro since 2001, they will justify the statement that the United Kingdom has a "serious deterioration in our trade deficit with the European Union. It is matched by an increase in real effective growth in sterling against a basket of currencies". [HL4739]
§ Lord McIntosh of HaringeyWhile it is true that the value of sterling has fallen against the euro and against a basket of currencies since 2001 in nominal terms, the quoted statement refers to real effective growth in sterling against a basket of currencies. In real terms—that is, adjusted for relative inflation rates—sterling has appreciated in value since 2001.