Why Did Thatcher Resign As Prime Minister: Divisions Over Europe

Question 1

What is the context to this factor ?

Answer 1

• Since the 1960s countries of the European Union wanted to move towards an economic union with the aim of merging currencies into a single European monetary system
• Thatcher accepted the Single European Act of 1986 believing it was essential step towards the kind of free market Europe she believed in

Question 2

What did Thatcher regret about her adoption of the Single European Act ?

Answer 2

• Regretted later doing so as it committed member states towards a closer monetary and political union
• caused friction with Thatchers eurosceptic attitude
• Bruges September 1988 she made a speech saying she did not wish to see a ‘European Superstate exercising a new dominance’ over Britain

Question 3

What was the ERM

Answer 3

The Exchange Rate Mechanism
- both Nigel Lawson and Foreign Sec Geoffrey Howe were keen to see Britian join
- aimed to create European monterary stability by mini zing the exchange rate fluctuations between members in

Question 4

What was Thatchers reaction to a proposal of the ERM/ Britians involvement with the ERM ?

Answer 4

Disagreed with it and was fortified in her opposition by her unelected economic adviser Alan Walter’s
- June 1989 demoted Howe from Foreign sec to meaningless title of deputy Prime Minister
- October 1989 Lawson ressigned as Chancellor

Question 5

What was the result of the divisons over Europe ?

Answer 5

• depend the rift within her party weakening her authority and allows her to be perceived as weak as she later accepted joining the ERM
• increased her reutilisation as an isolated leader
• Britian joined the ERM in October 1990 as a result of John Major convincing her it would combat domestic inflation
• Did satisfy the eurospectics and warmed relations within the party but sent a message of stubbornness to the public