European Monetary Union

HC Deb 02 April 1992 vol 222 c479W

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer which provisions of stage II of European monetary union apply to the United Kingdom before notice is given under article 1 of the protocol of the Maastricht treaty relating to the United Kingdom.

Mr. Nelson

All the stage 2 provisions of the Maastricht treaty will apply to the United Kingdom except that, by virtue of paragraph 11 of the United Kingdom protocol, our ways and means facility with the Bank of England can be maintained if and so long as the United Kingdom does not move to the third stage.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer for what reasons it was considered desirable for the United Kingdom, to retain the ways and means facility, according to paragraph 11 of the Maastricht protocol on provisions relating to the United Kingdom, under stage II of European monetary union.

Mr. Nelson

The Government saw no reason to change our existing ways and means arrangements during stage 2 to meet the intention of article 104 in prohibiting monetary financing.