§ Mr. Marlowasked the Chancellor of the Exchequer what action the Government will take to prevent the European Economic Community Commission from borrowing money.
§ Mr. Lawson[pursuant to his reply, 25 November 1980]: The European Community borrows money for on-lending under a number of different schemes. The operations of borrowing and lending under these schemes balance, and the Commission has no powers to retain borrowed money to finance current expenditure. Any new scheme or extension to an existing scheme would require the agreement of the Council.
§ Mr. Marlowasked the Chancellor of the Exchequer whether the European Economic Community Commission would borrow money in the same market as Her Majesty's Government, therefore tending to force up the rate of interest.
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§ Mr. Lawson[pursuant to his reply, 25 November 1980]: It is not possible to predict how much the Commission may borrow in sterling on the London market, but I would not expect such borrowing to have a noticeable effect on United Kingdom interest rates. Sterling issues in London by the Commission, like those by any other borrower, are subject to timing consent from the Bank of England.