PERFORMANCE OF THE EURO (NO.11)

Motion Text

That this House notes with concern the statement by the European Commission on 10th April that the eurozone economy may have contracted in the first three months of 2003; notes also the astonishing decision by the European Central Bank to keep its interest rate at 2.5 per cent. on the grounds that its monetary stance was 'consistent with the preservation of price stability', demonstrating its ongoing and misguided obsession with inflation when the real danger now facing the eurozone is deflation; is alarmed that the slide into recession in the eurozone may also damage Britain's relatively strong economic performance; and endorses the view expressed by Jaques Delors that the euro is not working.