European Single Currency — 21 Jul 1998

I beg to move,

That this House believes that membership of the European Single Currency will be in Britain's long-term economic interests because it will promote trade, increase competitiveness, secure inward investment, reduce interest rates, boost economic stability, consolidate the City of London's pre-eminent financial market position, and promote growth, employment and Britain's influence in Europe; calls on the Government to hold a referendum on the principle of the Single Currency during the current Parliament and to join the Single Currency at the earliest practical opportunity; and in the intervening period to implement a series of policies to prepare for Single Currency membership including: joint six monthly reports by the Treasury and the Bank of England on progress towards interest rate convergence with the Euro zone, steps to secure a stable and fairly valued pound, action to align UK and Euro inflation levels and targets, and discussions with the UK's European partners aimed at promoting an accountable structure for the European Central Bank and maximum possible fiscal subsidiarity.

I beg to move, To leave out from "House" to the end of the Question, and to add instead thereof:

welcomes the Government's conviction to pursue a prudent and balanced policy in respect of United Kingdom membership of the single currency; believes that, in principle, British membership of a successful single currency could bring economic benefits to Britain and to Europe; welcomes the Government's decision to make the national economic interest the key test for British entry; agrees with the Government that, barring some fundamental and unforeseen change in economic circumstances, making a decision to join during the current Parliament is not realistic; commends the actions of the Government to introduce a programme of economic reforms and practical assistance for British businesses which are both in the national economic interest and will help to create a real option of joining the single currency early in the next Parliament should Government, Parliament and the people so decide; and believes that the Government's policy will bring stability to business and reflects the long-term economic interests of the country.

Question put, That the original words stand part of the Question:--

The House divided: Ayes 46, Noes 292.

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