HC Deb 04 December 1996 vol 286 cc647-8W
Mr. MacShane

To ask the Chancellor of the Exchequer what assessment he has made of recent reports by the(a) European Commission and (b) European Monetary Institute in respect of the United Kingdom's eligibility for entry into the European monetary union. [3902]

Mr. Kenneth Clarke

Recent Commission and EMI reports show a majority of member states, including the UK, not currently meeting the convergence criteria. This makes it clear that European single currency will not start in 1997. Beyond that, the reports have no implications for eligibility of the UK or any other member states for entry into EMU. Interpretation of all the criteria will be for Heads of Government to decide, when the decision is made on which countries have met the necessary conditions to adopt the single currency on the basis of performance against the criteria in calendar year 1997. This decision will be made in 1998 at the earliest.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer to what extent the United Kingdom currently meets the Maastricht convergence criteria; and if he will forecast United Kingdom performance in respect of each of these criteria for 1 January 1998. [4749]

Mr. Clarke

Updated economic forecasts were published in the "Financial Statement and Budget Report" of 26 November 1996.

Mr. Mitchell

To ask the Chancellor of the Exchequer what is Her Majesty's Government's policy in respect of fulfilment of the Maastricht convergence criteria. [4750]

Mr. Clarke

The Maastricht convergence criteria represent sound economics, whether or not we join EMU. They are fully consistent with the Government's economic policy of achieving permanently low inflation and sound public finance.