HC Deb 16 October 1996 vol 282 cc915-6W
Mr. Matthew Banks

To ask the Chancellor of the Exchequer when the Council of Ministers of the European Community will carry out the assessment, required by article 109j of the treaty, of whether the third stage of economic and monetary union can begin in 1997; and if, in relation to that process, the United Kingdom is required to notify its intentions. [41214]

Mr. Kenneth Clarke

Article 109j of the EC treaty requires that a formal assessment by the Council of Ministers of which member states meet the necessary conditions for the adoption of the single currency in 1997 should take place by the end of 1996. The European Council agreed at its meeting in Florence in June that member states will not be ready to adopt the single currency in 1997 and confirmed its commitment to the third stage of economic and monetary union starting in 1999 in line with the EC treaty. However, in accordance with its obligation under the EC treaty, the Council will carry out the assessment procedure under article 109j before the end of 1996.

Paragraph 1 of protocol No. 11 to the treaty requires the United Kingdom to notify its intentions in relation to the third stage before this assessment under article 109j is carried out. Accordingly, the Council has been notified by the United Kingdom's permanent representative that the United Kingdom does not intend to move to the third stage in 1997. A copy of the notification has been placed in the Library of both Houses.

This notification does not prejudge or affect in any way the future decision on the United Kingdom's participation in the third stage. Under the treaty, the United Kingdom is not committed and cannot be obliged to move to the third stage without a separate decision to do so by the Government and Parliament. The Government's policy remains that no decision will be taken either way on participation in the third stage during the lifetime of the current Parliament because sufficient information to make a full assessment of the implications for the United Kingdom will not be available.