§ 19. Mr. Gordon PrenticeTo ask the Chancellor of the Exchequer when he expects the EU will establish a single currency; and what assessment he has made of the benefits and disbenefits of United Kingdom participation.
§ Mr. Heathcoat-AmoryMy right hon. and learned Friend the Chancellor of the Exchequer has made it clear he does not expect conditions to be right for any move to a single currency in 1997. Whether the United Kingdom would benefit from a later move to a single currency would depend a great deal on whether significant convergence had been achieved among the member states concerned. When and if the timing of any moves to stage 3 becomes clearer, the Government have ensured that United kingdom participation could not occur without the approval of a full Act of Parliament.
§ Mr. JenkinTo ask the Chancellor of the Exchequer if he will undertake a compliance cost assessment with regard to the obligations likely to be imposed upon the United Kingdom's financial institutions in order to be prepared for the possible adoption of the single European currency; what discussions he, his Department, or the Bank of England have had on such obligations; and if he will make a statement.
§ Mr. NelsonAt the appropriate time, the Government will make an assessment of the costs and benefits of participating in a single currency, should this question arise. In carrying out their functions, both the Treasury and the Bank of England maintain a wide range of contacts with financial institutions. In this context, a number of them have raised the question of the implications for the United Kingdom financial sector and the wider United kingdom economy of a single European Currency.