HC Deb 18 July 1991 vol 195 cc246-8W
Mr. Denzil Davies

To ask the Chancellor of the Exchequer (1) how it is proposed that, pursuant to article 102(d) of the draft treaty on economic and monetary union, the Commission shall ensure that the specific recommendations on the budget balance and the control of production costs of a member state are identified;

(2) whether he will list those methods of monitoring financing of public sector deficits which will be presented in the United Kingdom, pursuant to article 109(b) of the draft treaty on economic and monetary union;

(3) whether he will set out the appropriate measures which the Council may adopt for the avoidance of excessive deficits by a member state, pursuant to article 104(a) of the draft treaty on economic and monetary union;

(4) whether he will list the prerogatives of the proposed European central bank which are entitled to be safeguarded, pursuant to article 173 of the draft treaty on economic and monetary union;

(5) what factors it is envisaged will be taken into account in the guidelines on the level of earnings in member states which will be issued to the Commission, pursuant to article 102(c) of the draft treaty on economic and monetary union;

(6) which Committee of the European Parliament it is envisaged will assist the Commission in monitoring the implementation of the guidelines on a member state's (a) budget balances and (b) production costs, pursuant to article 102(c) of the draft treaty on economic and monetary union;

(7) what factors will be used by the Council to determine whether the budget deficit of a member state is excessive and thus to be avoided, pursuant to article 104(a) of the draft treaty on economic and monetary union;

(8) how many votes will be required in the Council of Ministers for the Council to adopt the guidelines of the Commission in respect of the United Kingdom budget balances and control of production costs, pursuant to article 102(c) of the draft treaty on economic and monetary union;

(9) according to what principles and objectives it is envisaged that the European system of central banks will define monetary policy, as empowered by article 4(2) of the draft treaty amending the treaty of Rome with a view to achieving economic and monetary union;

(10) if it is envisaged that the European system of central banks shall be the final arbiter of the definition of monetary policy, pursuant to article 4(2) of the draft treaty amending the treaty of Rome with a view to achieving economic and monetary union;

(11) what amendments he proposes to bring forward to the Bank of England Act 1947 to ensure that Her Majesty's Government shall not seek to influence the bank, pursuant to the requirements of article 106(a) of the draft treaty on economic and monetary union;

(12) how many votes will be required in the Council of Ministers for the Council to adopt specific recommendations relating to the United Kingdom's budget balances and control of production costs, pursuant to article 102(d) of the draft treaty on economic and monetary union;

(13) what factors it is envisaged the Commission will take into account in submitting guidelines relating to the budget balances of member states, pursuant to article 102(c) of the draft treaty amending the treaty of Rome with a view to achieving economic and monetary union;

(14) whether he will list those items of production costs in respect of which the Commission will be issuing guidelines relating to member states, pursuant to article 102(c) of the draft treaty on economic and monetary union;

(15) whether it is envisaged that the guidelines to be issued by the Commission on the control of production costs, pursuant to article 102(c) of the draft treaty on economic and monetary union will cover wages of employees in the service sector.

Mr. Norman Lamont

The draft treaty to which the right hon. Gentleman refers is that submitted by the European Commission in December 1990 to the intergovernmental conference and is only one of a large number of submissions to the IGC. The issues raised by the right hon. Gentleman are still under discussion and no conclusion has yet been reached.

Mr. Denzil Davies

To ask the Chancellor of the Exchequer whether under the proposed rules for establishing economic and monetary union certain of the Scottish banks will continue to be able to issue bank notes.

Mr. Norman Lamont

The issue raised by the right hon. Gentleman is part of a wider question on the issuance of bank notes, which is still under discussion in the intergovernmental conference of economic and monetary union.