§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what part the United Kingdom is taking, directly or indirectly, in discussions on reconstituting the ERM or operating an informal ERM; what undertakings, assurances and understandings, express or implied, have been given by Her Majesty's Government to the European Commission or monetary authorities or other EEC Governments concerning the relationship between sterling and the ecu; and to what extent the change in the value of sterling against the ecu in the 11 months to January 1994 is a reflection of such undertakings, assurances and understandings.
§ Mr. NelsonThe United Kingdom will continue to play a full and active part in discussions on monetary co-operation in stage 2 of economic and monetary union. But our policy on the exchange rate mechanism is well-known. We cannot consider rejoining the ERM until there is greater convergence between the monetary policies appropriate for all Community economies and we should need to be satisfied that the system would be operated for the benefit of all its members. The Prime Minister and the Chancellor of the Exchequer have made clear that sterling will not rejoin the ERM in this Parliament.
The Government have given no undertakings, assurances or understandings express or implied concerning the relationship between sterling and the ecu to any person or institution. Sterling's exchange rate against the ecu reflects day-to-day market trading in all of the Community currencies.