EMU AND INDEPENDENT ECONOMISTS

Early day motion 136, tabled 18 June 1997 by Ken Livingstone (Labour). Signed by 8 members.

That this House notes the open letter by more than 300 European economists to the heads of government of the 15 member states of the European Union which points out that the convergence criteria laid down by the Treaty of Maastricht are drawn from monetarist doctrines not accepted by the majority of economists and that current and future recessions will be made worse by the deflationary effects of these criteria; is further concerned by the economists' view that with exchange rate flexibility lost, fiscal policy restricted by the Stability Pact, no provision for significant financial transfers within the EU and the transfer of other economic policy levers to the independent European Central Bank, governments and parliaments will be left with virtually no instruments to cushion the effects of economic shocks, so that the EU's already scandalous record of unemployment and social inequality will be made worse; congratulates the European economists on their recognition that EMU within the monetarist framework of the Treaty of Maastricht gravely threatens the future of the people of Europe; and expresses its delight that this view now has the overwhelming backing of public opinion throughout the EU.

Signatures by party: Labour 8.