European Single Currency

HC Deb 06 December 1995 vol 268 cc258-9W

Mr. Gill

To ask the Chancellor of the Exchequer what estimate he has made of the time needed to introduce a single currency after a decision has been made to introduce it. [2770]

Mrs. Angela Knight

The European Monetary Institute, in its report on the changeover to the single currency published on 14 November 1995, considered that a period of up to three years would be required to introduce single currency notes and coins after the start of the third stage of economic and monetary union. It considered that the period between the decision to move to a single currency and the start of the third stage would need to be about one year in length. The Government believe that these are probably reasonable estimates of the lengths of time required, bearing in mind the necessary legal and practical steps, although the actual times would depend on many factors.

Under protocol 1 1 annexed to the EC treaty, the United Kingdom shall not be obliged or committed to move to the third stage of Economic and monetary union without a separate decision to do so by the Government and Parliament. We will agree to take part in a single currency only if it is in our national interest to do so, given the circumstances at the time.

Mr. Gill

To ask the Chancellor of the Exchequer what estimate he has made of the cost to the United Kingdom of adopting the single currency. [2769]

Mrs. Knight

If the United Kingdom participates in the third stage of economic and monetary union, there will he transitional costs to business and public authorities, associated with the changeover to the single currency. These potential costs would be one of the factors that would need to be taken into account, at the appropriate time, when the Government make their assessment of whether it is in the United Kingdom's interest to join a move to the third stage of economic and monetary union.

Under protocol 11 annexed to the EC treaty, the United Kingdom shall not be obliged or committed to move to the third stage of Economic and monetary union without a separate decision to do so by the Government and Parliament. We will agree to take part in a single currency only if it is in our national interest to do so, given the circumstances at the time.