Mr Davies does not mention Maastricht, but it would be fair to say that Stage III of European Monetary Union represents the codification of that theory.
Mr Davies also notes that John Major may now be prepared to move away from the Eighties consensus and make the regeneration of output growth the prime target. The article concludes that the way is now open again for a real macro-economic debate between British political parties.
Official Labour policy supports Stage III of EMU and Maastricht; it also condemns Mr Major's opt- out from Stage III. If there is such a debate, Labour will find itself arguing for the control of inflation, notwithstanding the effect on output and jobs, while the Conservatives give at least equal weight to all three. Is the Labour Party once again about to entrap itself in the policies of yesterday, long after those policies have ceased to be fashionable?
MP for Llanelli (Lab)
House of Commons
11 JanuaryReuse content