London can stay in the driving seat

1 	What is the European Monetary Union?

2 	Investigate the reasons why France and Germany see Monetary Union 
	as being so desirable.

3 	Britain does not share the enthusiasm of other EU countries for EMU. 
	Why not? Consider whether Britain's policy owes more to nationalist 		feelings than a credible economic policy.

4	a) Explain how Britain may benefit from remaining outside the EMU.
	b) What effect will the development of London as an alternative financial 		centre have upon the exchange rate and interest rate policy of EMU 		members?

5 	When John Major was Chancellor of the Exchequer he took Britain into 
	the European   Exchange Rate Mechanism (ERM). 
	a) Research Britain's reasons for entering the ERM. Why did it all go wrong 	and why did  Britain end up being 'bitten by the snake in the tunnel'?
	b) What happened to the UK economy following Norman Lamont's decision 	to leave the ERM?