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In discussion it was noted that the debate at the Madrid Council had been assisted by clear and firm direction from the Spanish Presidency. The Presidency and Secretariat had also judged very skilfully how the nature of a commitment to preparatory work for later stages of EMU might best be expressed in the Conclusions. While the language was not ideal, the formulation proposed had been one which the United Kingdom could accept, leaving the French in an unusual position of isolation. The United Kingdom's Readiness to participate in a constructive examination of
ions had wrong footed those countries, notably France, and 'Belgium, that were looking for precipitate agreement to an IGC. The constructive approach taken up in the Madrid debate had been well received not only in the British press but the Parliamentary Party. The approach would be seen to contrast favourably with the uncritical stance in favour of the Delors Report taken up by the Opposition, including its readiness to contemplate a further ft of resources to southern Member countries. It remained to be seen how well the ERM would survive the test of finalberalisation of capital controls by France and Italy. However provided that the necessary conditions were satisfied ited Kingdom membership of the ERM could be helpful not only to management of the economy but to the influence we could in the forthcoming debate. In the meantime, valuable breathing space had been won and it would be important to it to enlist public opinion in other potentially sympathetic quarters including Germany. At the same time the Goverment should use this opportunity
Kerpent should use this effectively to develop criticisms of the prescriptions in the Delors Report, to develop clear alternatives and to build up appropriate alliances The Government should make use of the uneasiness that number felt about the closeness of relations between the French authorities and the President of the Commission. The period ahead remained a dangerous one and the position would not be helped by possible Irish ambitions for their Presidency at the beginning of 1990, which would be followed by Italian Presidency.
Summing up the discussion the PRIME MINISTER said that in the discussion on the Social Charter it had been possible to gain ground by setting out the United geom's own approach in detail. In the forthcoming discussions in the Economic and Financial Council, the Government should use the room for manoeuvre it now had to develop its of economic and monetary cooperation, develop alternative approaches and build up alliances in support approach.
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