ABSTRACT
This chapter deals with the position of the City of London in the debate over the position of sterling in the exchange rate mechanism (ERM). The Confederation of British Industry stated that it would work actively to secure the ratification of the Maastricht agreements and that it looked at the United Kingdom presidency of the European Community in the second half of 1992 as a chance to give further impetus to securing business needs on economic and monetary union (EMU). The British government's draft Treaty provisions presented at the beginning of the intergovernmental conference on EMU as an alternative to the Delors plan, addressed many of the issues concerning the British financial sector. Once the outcomes of Maastricht summit confirmed the fears that had characterised the British attitude towards the IGC, the City of London reacted by rejecting the whole EMU process.
