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Economic and Monetary Union - 9 June 2003

Mr. David Curry (Skipton and Ripon): I sometimes wonder whether the Chancellor draws a distinction between the national economic interest and the national interest. As far as the national interest is concerned, there is a great deal of talk about the new Europe that enlargement will bring into existence and the United Kingdom's opportunity to play a leadership role in that wider Europe. Given that there will be a natural gravitational pull toward countries that have espoused the policies that are considered to be central to the European Union, is it not important that the Chancellor bears those facts in mind and gets on with his further assessment at the earliest sensible opportunity?

Mr. Brown: I agree with the right hon. Gentleman on one point: the changes to the European Union, especially the addition of 10 countries, mean that we will have a European Union that will look outwards rather than inwards. The idea of fortress Europe will become a thing of the past and the concept of a trade bloc that exists on its own and is obsessed by its internal rule will change partly because of enlargement and partly because we must meet the needs of competition in the global economy. However, I would not jump from that to saying that irrespective of achieving convergence and flexibility, we should jump into membership of the European single currency. It is necessary to ensure that we have convergence and flexibility that will enable us to live with euro interest rates permanently while advancing our goals of high and stable levels of employment and the proper funding of public services.

When considering those matters, I hope that the right hon. Gentleman will agree with his colleague the right hon. and learned Member for Rushcliffe (Mr. Clarke), the former Chancellor, that the five tests have a great deal to say for them and that it is necessary to meet them to ensure that potential benefits for trade, investment and co-operation with other EU countries are fully realised.

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David Curry MP | House of Commons, London SW1A 0AA | tel: 020 7219 6202