§ Dr. Lynne JonesTo ask the Chancellor of the Exchequer what criteria he will use to decide the appropriate exchange rate for the pound against the euro for the United Kingdom's entry into the monetary union; and what is his strategy for(a) achieving and (b) maintaining that rate. [74877]
§ Ms HewittThe rate at which sterling would enter the single currency would need to be consistent with economic fundamentals in the UK and compatible with sustainable convergence between the UK and the euro-area. This was the basis for the decision on the conversion rates of currencies which joined in the first wave.
The Government's policy is for a stable and competitive exchange-rate over the medium term. The Government's fiscal and monetary policy framework will help to deliver the macroeconomic stability needed for a stable exchange rate.