§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is Her Majesty's Government's policy in respect of the Maastricht treaty agreement to return to the ERM for two years before monetary union. [4727]
§ Mr. Kenneth Clarke[holding answer 18 November 1996]The Prime Minister and I have made it clear on many occasions that we have no intention of re-entering sterling into any exchange rate mechanism. Since the Maastricht treaty was written, the operation of the ERM has changed considerably. It is not possible, in the light of this, to say how the convergence criteria on exchange rates will be interpreted. The decision on which countries meet the conditions for joining EMU will not be made until spring 1998 at the earliest.