To ask Her Majesty’s Government what assessment they have made of the suggestion by the Governor of the Bank of England that the Eurozone should pursue fiscal integration; and what they consider would be the implications for the United Kingdom and its membership of the European Union if such a policy were introduced.

The Treasury continually monitors economic developments in our trading partners as part of the normal policy process. The economic uncertainty that emanated from the euro area crisis had a chilling effect on the UK’s own recovery. The Chancellor has long made clear his view that there is a remorseless logic which means that the euro area, like any single currency, needs closer economic and fiscal integration to secure its future. At the same time, the UK Government has been clear that it will not be part of closer integration and will protect the interests of those outside the single currency, especially in relation to the Single Market.