European Monetary System And Exchange Rate Mechanism

EDM number 1335 in 1989-90, proposed by Austin Mitchell on 24/07/1990.

That this House is concerned at the economic consequences of British membership of the Exchange Rate Mechanism of the European Monetary System; is further concerned at the danger that it will impose on Britain the same deflation and increasing unemployment experienced by France and Italy for 10 years after membership, thus making the exchange rate dependant on competitors who have a vested interest in keeping sterling overvalued to sustain their growing share of our market; is further concerned at tying sterling to the currency of an industrial competitor, with whom we are in substantial deficit, and helping to keep down a Deutschmark which needs to be revalued if Europe is to trade fairly; regrets the loss of independent control over British interest rates and of the ability to manage our exchange rate for national purposes: warns against steps towards entry before full, fair and free parliamentary and national debate; is opposed to any form of membership which does not impose symmetrical obligations on creditors and debtors within the European Monetary System, a co-ordinated European Economic Community growth, and a strengthened regional policy and a rate on entry which is competitive enough to ensure steady progreess in closing our balance of payments deficit, facilitating British exports and broadening and deepening Britain's industrial base; and also notes that there have been no re-adjustments within the system for three years, an unfortunate precedent for a country which needs to be free to make necessary changes to its exchange rate to ease problems of transition and to maintain industrial competitiveness.

This motion has been signed by a total of 10 MPs.