§ Lord Tebbitasked Her Majesty's Government:
What fault lines have so far been discovered in the exchange rate mechanism.
The Earl of CaithnessEuropean Community Economic and Finance Ministers and central bank governors reviewed the ERM at an informal meeting on 21st–23rd May. They agreed that a major source of tension in the ERM has been the lack of economic convergence within the Community and hence the differing monetary policy requirements of its members, and they concluded that the mechanism must operate more flexibly in future.