In Madrid in June 1989, the European Council asked the competent bodies of the Community to carry out preparatory work for the Inter-governmental Conference on Economic and Monetary Union. In response, the Committee of Governors of the Central Banks of the member states, which was one of the bodies concerned, prepared a draft statute of the European System of Central Banks and of the European Central Bank. The draft statute addresses the situation in Stage III of Economic and Monetary Union when there will be a single monetary policy for the Community and when exchange rates between Community currencies will be irrevocably fixed as a prelude to the introduction of a single Community currency.
The draft statute, together with an introductory report and a commentary, was presented to the Economic and Financial Affairs Council in November 1990. The initial response to it was quite favourable, although it was recognised at the time that a more informed reaction would have to await the detailed analysis and negotiation by the Inter-governmental Conference on Economic and Monetary Union.
Deputies will be aware, from information which I have given previously to this House, that the work of the ministerial conference is being prepared by a group of personal representatives drawn primarily from Finance ministries. While this group have considered the most important aspects of the draft statute in their discussions on monetary policy and institutional matters, they have yet to complete their examination of the document as a whole. Consideration by the ministerial conference of the issues is linked with this examination.
I presume that the group of bank officials to which the Deputy refers are the Committee of Central Bank Governors, including the bank officials who report to them. I can categorically assure him that there is no question of any undertakings being given in any such group which would commit this country to any part of the proposed statute.
The final draft of the Treaty, of which the statute which is eventually agreed will constitute an integral part, will be the fruit of discussions within the Council of Ministers. It will then be for the member states, acting in accordance with their own procedures, to ratify the revised text.