ECONOMIC/POLITICAL - Europe

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Last updated 9:57 AM on 4/8/26
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12 Terms

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Thatcher and Europe

Concerned by protectionism (economic policy followed by EEC) and European ideas of centralisation

She is also concerned by the budget payments made by the member states that rewarded inefficient nations but penalised efficient ones

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Westland Affair when

1986

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Westland Affair

Defence Secretary Heseltine resigns (Westland Affair) – Heseltine refuses to accept Thatcher’s choice for Westland Helicopters to be taken over by an American company, he thinks it was in Britain’s industrial interest to go European.

Resigns in January 1986 in protest, exposing deep divisions within Tory Party. Becomes a backbencher.

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Single European Act when

1986 Thatcher accepts entering it

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Single European Act

Discontent, committed UK to a single European market

Biggest step towards a centralised Europe, for example no individual state could veto majority decisions

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Outcomes of Single European Act politically

Many Eurosceptic politicians including Labour Leader Neil Kinnock + Tory Bill Cash and some unions opposed it, thought it reduced UK sovereignty and weakened workers’ rights, led to internal party disagreements

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Bruges Speech

  • 1988

  • Thatcher condemns the erosion of democracy by centralisation and bureaucracy

  • She doesn’t want Britain’s national identity to be absorbed into a centralising Europe

  • Thatcher’s adversarial style is out of place in European context

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ERM

Thatcher agrees to enter in October 1990 → told by financial experts it would provide means of fighting inflation

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ERM outcomes under Major

1992 monetary crisis - Black Wednesday - withdrew

Thatcher claims she was misled to enter it by Lawson and Howe

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Who withdraws in 1989

1989 Lawson resigned when found out Thatcher was taking more notice of Alan Walters (whom she had appointed as her special economic adviser) than she was him as chancellor.

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Who resigns in 1990

Howe resigned 1990 – revealed serious divisions in Tory party over Europe – criticism of Thatcher – prelude to leadership struggle 

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Other than Europe, why did Howe and Lawson resign?

Thatcher’s autocratic leadership style