Below is the text of Mr Major’s response on the ERM (Exchange Rate Mechanism) made on 26th April 1990 in the House of Commons.
Mr. Frank Field To ask the Chancellor of the Exchequer when he expects the Madrid conditions for exchange rate mechanism participation to be satisfied.
Mr. Major In due course.
Mr. Field Do the Government believe that all the conditions for entry, including those related to inflation, will be met by next year?
Mr. Major We must wait and see, but when the conditions are met we shall join the exchange rate mechanism.
Mr. Latham What specific features of the Bretton Woods agreement were so successful that we should want to recreate them now?
Mr. Major I think that we now find ourselves in a different set of circumstances, in which a greater degree of exchange rate stability would be extremely useful for everyone.