§ Mr. SpearingTo ask the Chancellor of the Exchequer what studies have been initiated by Her Majesty's Government or by the European Community of the tangible benefits to be derived from monetary union over those expected from the completion of the single market.
§ Mr. Maude[holding answer 6 December 1990]: The European Commission published in October 1990 a report entitled, "One market, one money: an evaluation of the costs and benefits of forming an economic and monetary union". The Government tabled an explanatory memorandum on the report on 5 November 1990. The autumn 1990 edition of the Treasury bulletin set out the Government's proposals for the establishment of a European Monetary Fund to manage a new common currency, the "hard ecu". These measures would be a powerful force for inflation convergence at the best Community performance.