§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer if he will list the changes in the rates, rules and modus operandi of the ERM since the United Kingdom left the mechanism; and what studies European central bankers have made of its operation and its effects on the level of currency speculation between European currencies.
§ Mr. NelsonOn 16 September 1992, sterling and the lira were suspended from participation in the ERM and the peseta was devalued by 5 per cent. The peseta was devalued by 6 per cent. along with the escudo, on 23 November 1992, and the Irish punt was devalued by 10 per cent. on 1 February 1993.
There have been no changes in ERM rules over this period.
The European Council, meeting in Birmingham, endorsed the view of Economic and Finance Ministers that the recent financial turbulence calls for reflection and analysis in the light of developments in capital markets and in the European and world monetary systems. It invited Economic and Finance Ministers, assisted by the monetary committee, with the involvement of the Commission, to carry this work forward, with the central bank governors. This work is continuing.