§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is his estimate of the fall in the rate of exchange against the ecu which would be required to eliminate the visible trade deficit with EEC countries within a period of 12 months. [35201]
1245W
§ Mrs. Angela KnightThe balance of trade with the EU depends on a variety of factors, including competitiveness. The key to sustained gains in competitiveness is control over costs, and policies directed at permanently low inflation and competitive markets provided the best environment in which to achieve this. A policy of deliberate devaluation would only raise inflation and be damaging to long-run economic performance.