The explanatory memorandum circulated on the EC proposal—Document No. 5692/90—for a Council decision on the conclusion of the articles of agreement establishing a European Bank for Reconstruction and Development is most relevant and I greatly welcome the interest of the House of Commons Select Committee on European Legislation, which has recommended a debate at an early stage.

I spoke with the Chairman of the Select Committee, the hon. Member for Newham, South (Mr. Spearing) and explained that, in the short time available, it has not been possible to arrange the separate debate recommended. I look forward tonight to a thorough debate on the orders and on all aspects raised by establishment of the new bank. It may be helpful to the House if I also deal with points arising from the Community document.

The House will acknowledge the extraordinary change in central and eastern Europe. Yesterday's dictatorships have been replaced by today's reborn democracies. The spurious certainties of centrally planned economies have given way to the opportunities and disciplines of the free market. The free world has reacted quickly to this momentous process, and must continue to do so if it is to help and influence events. It would be difficult to find a clearer example of quick reaction and long-term commitment than this new European Bank for Reconstruction and Development, or EBRD, which we are to discuss today.

It was only in December last year that the European Council decided at its meeting in Strasbourg to establish, as soon as possible, a new European bank to further the implementation in central and eastern European countries of democracy and economic reform. I shall have more to say about the purposes of the new bank in a moment. That decision in Strasbourg set in train a process of urgent, but careful, diplomacy. Preparatory discussions began in Paris in January this year, and continued almost unbroken until the articles of agreement establishing the bank were signed by representatives of its 42 prospective members in Paris on 29 May.