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Monetary Union

Oral Answers to Questions — Foreign and Commonwealth Affairs – in the House of Commons at 2:16 pm on 7th June 1995.

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Photo of Mr Bill Walker Mr Bill Walker , North Tayside 2:16 pm, 7th June 1995

To ask the Secretary of State for Foreign and Commonwealth Affairs what is the Government's policy on European monetary union; and how this will be presented at the reflections group. [25443]

Photo of David Davis David Davis Minister of State (Foreign and Commonwealth Office)

The United Kingdom will not participate in a single currency in 1996 or in 1997. The United Kingdom would only ever take part in a single currency if to do so would be in the national interest. Under the UK protocol to the treaty on European union, any decision to seek to join a single currency would be a matter for the UK Government and Parliament. The Government see no reason for any of the articles or associated protocols relating to economic and monetary union to be on the agenda for the 1996 intergovernmental conference. Neither is it on the agenda of the reflections group. The Government do not therefore intend to provide any submission on the issue to the reflections group.

Photo of Mr Bill Walker Mr Bill Walker , North Tayside

I thank my hon. Friend for that constructive and helpful reply. I take it that when he attends the reflections group he will be aware that other participants will arrive with the views of their countries and national Parliaments and Executives clearly in mind. They may want to do things that my hon. Friend might oppose. May I have my hon. Friend's assurance that what he has just said will give him the ground for opposing?

Photo of David Davis David Davis Minister of State (Foreign and Commonwealth Office)

In one sense, we shall be observing a difference of view between other countries. Some will want to relax the convergence criteria, some will want to tighten them. For that reason, I do not foresee a single currency being a major issue in the reflections group or the intergovernmental conference.

Photo of Martin Smyth Martin Smyth , Belfast South

The thrust of the Minister's answer was helpful. but does he accept that he who pays the piper calls the tune? In the European context, do we not have to monitor carefully those who would print bank notes and issue Government bonds and destroy the whole economy?

Photo of David Davis David Davis Minister of State (Foreign and Commonwealth Office)

One benefit of the British Government's position is that we are part of that process. Our policy input is extraordinarily important, and we are taken extremely seriously in those arguments. We have as much influence as anyone could wish.

Photo of Henry Bellingham Henry Bellingham , North West Norfolk

Does my hon. Friend agree that the quickest way to create a federal Europe would be to enter a single currency, so it is hardly surprising that the Government are so cautious? Public support for the Government's position is also hardly surprising. When will the Opposition wake up to that fact?

Photo of David Davis David Davis Minister of State (Foreign and Commonwealth Office)

The answer to my hon. Friend's last point is never.