§ Mr. Denzil DaviesTo ask the Chancellor of the Exchequer if the implementation of the stability pact which is proposed for stage III of EMU will require an amendment to the treaty of European union. [4394]
§ Mr. Kenneth ClarkeThe proposed stability pact aims to spell out practical procedures for implementation of the excessive deficits procedure in article 104c of the Maastricht treaty. One element of the pact is a draft regulation based on article 104c(14) second subparagraph. Otherwise, no amendment or change to the provisions of the treaty is envisaged or required for the implementation of the pact.
§ Mr. DaviesTo ask the Chancellor of the Exchequer what requirements in respect of a gross domestic product ceiling on member states' general Government debt are proposed for inclusion in the stability pact for EMU. [4393]
§ Mr. ClarkeThe Commission's proposals for a stability pact were submitted to Parliament on 22 October 1996 and I submitted an explanatory memorandum on 31 October. The proposed stability pact aims to reinforce the operation of the excessive deficits procedure in article 104c of the Maastricht treaty. It does not aim to change the reference value for debt which is specified in protocol No.5 of the Maastricht treaty.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what proposals in respect of budget disciplines have been made for(a) countries in monetary union and (b) countries outside the monetary union by (i) the European Commission and (ii) the German Government. [4367]
§ Mr. ClarkeThe Commission's proposals for a stability pact were published on 16 October 1996 and submitted to Parliament on 22 October. I submitted an explanatory memorandum on 31 October. The idea of a stability pact has been under discussion since the German Government first proposed clarifying existing provisions in article 104c of the Maastricht treaty in November 1995. Proposals in the stability pact on fiscal discipline would affect only member states which participate in the single currency.