§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer on how many occasions since 1978(a) British, (b) German and (c) French GDP has dropped by more than the limits prescribed by the stability pact agreed at the Dublin summit in any one year. [12474]
§ Mr. Kenneth ClarkeThe principles for the stability and growth pact agreed at the Dublin summit are intended to ensure that the Council of Ministers will assess deficits over the 3 per cent. reference value of participants in the single currency on a case by case basis. In the procedure, the Commission would as a rule consider an excess over the reference value to be exceptional only if there is an annual fall of real GDP of at least 2 per cent. The number of occasions when GDP has fallen by 2 per cent. or more since 1978 are(a) two (b) nil and (c) nil respectively.
The Council's assessment, however, will also take into account observations by a member state showing that an annual fall of less than 2 per cent. is nevertheless exceptional. The proposed European Council resolution contains an undertaking by the member states, in evaluating whether the economic downturn is severe, as a rule to take as a reference point an annual fall in real GDP of at least 0.75 per cent. The number of occasions when GDP has fallen by 0.75 per cent. or more since 1978 are (a) three (b) two and (c) one respectively.