§ Mr. MitchellTo ask the Chancellor of the Exchequer if he will list the amendments required to legislation on(a) banknotes and (b) the Bank of England in the event of the UK adhering to stage 3 of EMU. [26071]
§ Mrs. LiddellUnder Article 105a(1) of the Treaty (Article 16 of the ESCB Statute) the Governing Council of the ECB has the exclusive right to authorise the issue of banknotes within the Community. The ECB and the national central banks may issue such notes. Banknotes issued by the ECB and the national central banks shall be the only such notes to have the status of legal tender within the Community. In the event of the UK proceeding to Stage Three of EMU, Article 105a(1) would apply to the UK.
The Treaty requirements for central banks in Stage Three of economic and monetary union are described in Articles 107 and 108 of the Treaty and in the ESCB Statute (Protocol No. 3 to the Treaty). In the event of the UK joining EMU, national legislation, including the Statutes of the Bank of England, would have to be made compatible with the Treaty and the Statute. The Bank of England would also have to meet the Treaty specification for central bank independence.