§ Mr. Llew Smith
To ask the Prime Minister what progress has been made in consolidation of the exchange rate mechanism during the United Kingdom presidency of the European Council.
§ The Prime Minister
Following the severe financial turbulence which affected a number of ERM currencies in the autumn, I called the European Council in Birmingham on 16 October. This decided that the mechanism should be analysed in the light of developments in capital markets and in the European and world monetary systems. The work was remitted to ECOFIN. Further strains have recently confirmed the need for this work.