2.95 marks to the £ (the German Mark was viewed as the strongest currency in Europe).
Narrow fluctuations were allowed; it was banded. The currency could fluctuate within that band.
Pound traded very low. Speculation occurred. Raising interest rates failed.
Britain left the ERM - Economic competency of the Gov't within the electorate was destroyed.
Eurosceptics viewed it as White Wednesday.
However, the British Economy recovered almost immediately after leaving the ERM.
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The Economy - Privatisation
Coal industry was privatised in 1994.
Stock market was buoyed up - trading value of the LSE increased.
Railways were privatised in 1996 - Complicated and controversial; private companies could now run their own trains. Service became complicated.
The attempt to privatise the Post Office was abandoned due to public opposition and backbench rebellion fearful of an electoral wipe out.
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The Economy - Negative Equity
Many home-owners, as a result of the "Lawson Boom" entered negative equity.
This economic woe affected Tory grassroots predominantly in the south instead of the Industrial North.
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The Party - Sleaze!
Sleaze dogged Major's final years in office - David Mellor & Tim Yeo.
Many of the scandals were about sex, but others were about corruption.
Jeffrey Archer was found guilty of perjury.
Most governments are affected by sleaze towards the end but Major's gov't was affected seriously by the wave of sensationalist press directed at his gov't.
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The Party - Eurosceptics/Thatcher
Divisions in the party allowed eager politicians to advance their claims.
Eurosceptics saw an opportunity to push the gov't to the fringes of Europe or out altogether.
Thatcher encouraged Eurosceptic rebels by demanding a referendum to pass the Maastrict Treaty.
Thatcher can be viewed as a backseat Prime Minister - shaping policy outside of office.
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The Party - Leadership election gamble of 1995
"Back me or sack me" - Major was so concerned and insecure over the state of party affairs in the eyes of the press, he called a leadership contest to reaffirm his mandate.
This was unheard of for a PM to do.
John Redwood challenged Major.
Major won 218 votes, Redwood won 89.
Major had succeeded and quelled the viciousness of the press.
However, Redwood had won 89 votes in a party with a small majority in the House of Commons - shows considerable lack of support for Major.
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Foreign Policy - Northern Ireland, The Downing Str
Conservative PM instinctively sided with the Unionists in Northern Ireland.
John Major had a good relationship with Taoiseach Albert Reynolds.
Diplomacy: Started the peace process with the Downing Street Declaration.
Sparked a cease fire between IRA and Loyalist Paramilitaries.
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Foreign Policy - Europe, The Maastrict Treaty
Major won opt-outs:
Keeping the £ and not taking up the Social Charter.
Determined to prevent the Maastrict Treaty from becoming too federalist.
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Foreign Policy - End of the Cold War
Increased optimism in a multi-polarised world > EU becoming more influential.
Major sought to intervene in Bosnia.
Hosted a joint EU-UN conference in London.
A UN peacekeeping force was put in place.
Yet this mediation was seen as ineffectual, especially after the Srebrenica massacre.
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