§ Mr. SillarsTo ask the Chancellor of the Exchequer what alteration to the statutes governing the Bank of England's relationship with the Government would be required to comply with the Dutch Government's proposed draft treaty on economic and monetary union and the independence of member states' central banks.
§ Mr. MaudeThe model to which the hon. Gentleman refers is set out in a document produced by the EC Presidency as a basis for further negotiation at the 129W Inter-Governmental Conference on Economic and Monetary Union. The UK and other member states are not committed to any particular part of its contents. The issues raised by the hon. Gentleman are still under discussion and no conclusion has yet been reached.
§ Mr. SillarsTo ask the Chancellor of the Exchequer what consideration was given by participants in the intergovernmental conference on economic and monetary union to including among the convergence measurement criteria the levels of unemployment and investment.
§ Mr. MaudeThe Inter-Governmental Conference on economic and monetary union has considered a range of criteria. The Dutch Presidency text reflects the view that convergence of inflation and interest rates, successful membership of the narrow band of the ERM, and the avoidance of excessive budget deficits are the appropriate tests.