HL Deb 19 December 1996 vol 576 cc143-4WA
Lord Pearson of Rannoch

asked Her Majesty's Government:

Whether (a) the paragraphs in the Treaty of Rome which reflect the UK's option not to join the proposed economic and monetary union only come into effect after the United Kingdom has notified the Council that it does not intend to take part in the third and final stage of EMU, and (b) whether they will list the articles, subsections and indents in the Treaty which would not then apply to the UK;

Given that they have not yet notified the Council of Ministers that they do not intend to move to the third stage of economic and monetary union (as per paragraph 2 of the Protocol on certain provisions relating to the United Kingdom (EMU) to the Treaty on European Union), over which proposals for convergence criteria, "necessary conditions", stability pacts and exchange rate and currency regulations the United Kingdom will have a veto, and for what period of time; and which similar proposals will be decided by qualified majority voting; and

Given that they have not yet notified the Council of Ministers that they do not intend to move to the third stage of economic and monetary union (as per Paragraph 2 of the Protocol on certain provisions relating to the United Kingdom (EMU) to the Treaty on European Union), over which articles in that treaty which deal with EMU the United Kingdom will have a veto, and for what period of time; and which articles will be decided by qualified majority voting.

The Minister of State, Department of Social Security (Lord Mackay of Ardbrecknish)

Paragraphs 3-10 of Protocol No. 11 to the EC Treaty list the legal implications for the United Kingdom if it notifies the Council in accordance with Paragraph 3 of the protocol that it does not intend to move to the third stage of economic and monetary union (EMU).

On 16th October, the UK notified the Council pursuant to paragraph 2 of Protocol No. 11 and in the context of the assessment under Article 109j(2), that it did not intend to move to the third stage of economic and monetary union (EMU) in 1997; (Official Report, Commons, 16/10/96; Col. 917).

This has no implications for the Government's policy towards EMU or for the UK's option to decide whether or not to seek to participate in a third stage beginning on 1st January 1999. As a result of Protocol No. 11 and the EC(A) Act 1993, the UK would only be able to participate in the third stage of EMU, including the single currency, if both the Government and Parliament were to decide that it should do so. The Government would only seek to participate if it were to believe that it would be in the national interest, on the basis of a full assessment when the facts are clear of the implications for the United Kingdom.