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London (Reuters) - Emu member countries could put Britain under political pressure if the pound should fall sharply against the euro at some stage in the future, Robin Cook, the Foreign Secretary, said yesterday.
Questioned by Commons Foreign Affairs Committee on how much influence Emu members would have over British exchange rate policy, Mr Cook answered that they would have no binding legal powers.
Mr Cook was asked whether the pound might be forced to shadow or follow the single currency before Britain joined it.
"I think the position is that we cannot be legally compelled to do so," he said. But some Emu member states were motivated by "weariness with what they see as unfair depreciation of other people's currencies.
"Without doubt if the single currency was to find itself appreciating against sterling, or we were seen to be depreciating, we would come under political pressure."
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