§ Mr Marlow
To ask the Chancellor of the Exchequer. what assessment he has made of the United Kingdom's capacity(a) to revalue and (b) to devalue sterling in a partial EMU excluding the United Kingdom. 
§ Mrs. Angela Knight
If the UK exercises its option not to join stage 3 of EMU the Government will continue to decide what exchange rate arrangements for Sterling are in the country's best interests.235W
In this context, the Prime Minister secured agreement at the Madrid European Council that the ECOFIN Council, together with, in their respective fields of competence, the Commission and the European Monetary Institute, study the range of issues raised by the possibility that some countries may not initially participate in the Euro area, including issues related to monetary stability and exchange rate relations.