HC Deb 12 February 1990 vol 167 cc13-4W
Mr. Ralph Howell

To ask the Prime Minister pursuant to her reply to the hon. Member for Ludlow (Mr. Gill) on 25 January,Official Report, column 1047, what are the reasons why all green currencies could not be dismantled in 1990; and if she will list the member states which are opposed to such dismantlement.

The Prime Minister

The Council of Ministers has agreed that all monetary gaps should be dismantled by the end of 1992 at the latest. Because of the effects of very large devaluations on prices, public expenditure and the rate of inflation, it has been generally accepted Community practice that large monetary gaps should be dismantled in stages. Reflecting this, the Commission has not proposed the complete elimination of monetary gaps in 1990, and a majority of member states could be expected to resist such a proposal.