§ Mr. ShoreTo ask the Prime Minister further to his oral statement of Monday 18 December, on the Madrid European Council, when and by what means article 3 of the protocol on the convergence criteria referred to in article 109(J) of the treaty on European Union was deleted or amended. [7620]
§ The Prime MinisterArticle 3 of the protocol on the convergence criteria has been neither deleted nor amended. It will be for the Council, meeting as Heads of State or Government in early 1998, to decide pursuant to the provisions of the treaty which member states fulfil the necessary conditions to move to stage 3 of economic and monetary union. It is not possible to say now precisely how the exchange rate criterion will be interpreted, given the changes in the way the exchange rate mechanism has operated since the treaty was agreed.
Protocol No. 11, annexed to the EC treaty, means that the United Kingdom shall not be obliged or committed to move to the third stage of economic 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. SpearingTo ask the Prime Minister, pursuant to his oral statement of 18 December,Official Report, column 1219–35, concerning his intention to initiate a study into the proposals for monetary union within the European Union, by whom the study will be conducted; what the terms of reference of the inquiry will be; if written or oral evidence can be submitted to it; if it will operate in public at any time; and when he expects it to report. [7669]
§ The Prime MinisterThe Madrid European Council requested that the Ecofin Council, together with, in their respective fields of competence, the Commission and the European Monetary Institute, should study the range of issues raised by the fact that some countries might not initially participate in the Euro area. In particular, the study should cover those issues related to monetary 115W stability. The Council noted that the future relationships would have to be defined prior to the move to stage 3 and requested that the Ecofin Council should report on these issues as soon as possible.
The United Kingdom's participation in this study in no way prejudges the United Kingdom's decision whether to notify our intention to move to stage 3 of EMU in accordance with the provisions of protocol 11 annexed to the EC treaty.
§ Mr. Austin MitchellTo ask the Prime Minister which countries declared their intention to participate in monetary union at the Madrid summit. [7555]
§ The Prime MinisterAll EU member states except for the United Kingdom and Denmark are committed to participation in the third stage of economic and monetary union in accordance with the EC treaty.
§ Mr. MitchellTo ask the Prime Minister what system of redistribution and on what scale was proposed at the Madrid summit to compensate(a) nations and (b) regions damaged by monetary union; and if he will make a statement on the United Kingdom role in respect of such compensatory measures. [7707]
§ The Prime MinisterNo system of redistribution was proposed at the European Council at Madrid.
§ Mr. MitchellTo ask the Prime Minister if he will list those countries which he assessed would be able to meet the Maastricht convergence conditions by January 1998 on current trends projected. [7709]
§ The Prime MinisterThe question of which countries fulfil the necessary conditions for adoption of the single currency will be decided by the Council of Ministers, meeting in the form of Heads of State or Government. The latest Commission forecasts, released on 22 November 1995, provided information on the projected status of each member state in 1997. The forecast are available in the House of Commons Library.