Exchange Rate Mechanism

HC Deb 18 October 1990 vol 177 cc881-2W

Mr. Allen

To ask the Chancellor of the Exchequer if he has anything to add to his statement of 26 March,Official Report, column 116, about the conditions required to be met for entry to the exchange rate mechanism.

Mr. Maude

I have nothing to add to the statement my right hon. Friend the Chancellor of the Exchequer made on 15 October at column 928–29.

Mr. Teddy Taylor

To ask the Chancellor of the Exchequer if he will make a statement outlining the effect the decision to join the exchange rate mechanism of the exchange rate mechanism will have on the United Kingdom's trade balance with the European Economic Community.

Mr. Maude

[holding answer 17 October 1990]: Future movements in the United Kingdom's trade balance with the EC will be influenced by a number of different factors. ERM entry will reinforce counter-inflationary policy and provide a better framework for British industry to control costs.