Written question asked by Michael Brown (Conservative), in the House of Commons. It was due for an answer on Monday, 3 March 1997. It was answered by Lord Clarke of Nottingham (Conservative) on Monday, 3 March 1997 on behalf of the Treasury.

Treasury

Question: If it is his policy that the United Kingdom may enter European currency union without an accompanying fiscal union amongst participating Member States.

Answer: Mr. Michael Brown: To ask the Chancellor of the Exchequer if it is his policy that the United Kingdom may enter European currency union without an accompanying fiscal union among participating member states. [17044] Mr. Kenneth Clarke: Yes. If the United Kingdom were to join EMU we could face sanctions if we were consistently to run up budget deficits of more than three per cent. of GDP and do nothing to correct them. Within that constraint, our budgetary choices would rightly remain a matter for national Governments and parliaments.

Secondary information