HC Deb 12 March 1998 vol 308 cc309-10W
33. Dr. Starkey

To ask the Chancellor of the Exchequer if he will make a statement on the steps currently being taken by his Department to prepare for the single European currency. [32525]

Mr. Gordon Brown

I have set up a Euro Preparations Unit (EPU) in the Treasury to play a coordinating role in helping both British business and the public sector prepare for the single currency. The Unit will look at the implications of the introduction of the euro on 1 January 1999 as well as how we would join and introduce the single currency in the United Kingdom if we decided to do so.

Mr. Mitchell

To ask the Chancellor of the Exchequer if he will press for Greek membership of the Euro. [33806]

Mrs. Liddell

Decisions on which countries meet the necessary conditions to go forward to Stage III of Economic and Monetary Union will be taken by Heads of Government in May.

Mr. Redwood

To ask the Chancellor of the Exchequer (1) if the British Government will support the triangulation method for currency conversion between member states; [34087]

(2) what assessment he has made of the measures which British companies will be required to take in order to prepare their accounts in euros under the triangulation method. [34089]

Mrs. Liddell

After the launch of the euro on 1 January 1999. the national currencies of participating countries will continue to exist as national currency denominations (or units) of the euro during a transitional period of three years. Conversion from one of these national denominations to another national denomination will need to be effected via a conversion to the euro unit, or by another process producing the same result, to ensure that mathematical discrepancies do not arise. This process is described as triangulation and is set out in Council Regulation (EC) No 1103/97 on certain provisions relating to the introduction of the euro, adopted on 17 June 1997. Given that it applies to conversion between national currency units of participating countries and not the euro unit itself, its use will not arise for the calculation and presentation of accounts in euro.

Mr. Redwood

To ask the Chancellor of the Exchequer what role the Bank of England will have in assisting the European system of central banks to support the value of the currencies participating in monetary union after 2 May. [34090]

Mrs. Liddell

There can be no presumption that such support will be necessary, but in any event the Bank of England will have no formal obligations to assist the ESCB to support the value of currencies participating in monetary union after 2 May. The Bank will continue to stand ready to assist other central banks in their operations from time to time.