Britain's EU Journey: When Major got an opt-out from euro

Britain officially leaves European Union on Jan. 31 after a debilitating political period that has bitterly divided nation since 2016 Brexit referendum. Difficult negotiations setting out new relationship between Britain and its European neighbours will continue throughout 2020. This series of stories chronicles Britain’s tortured relationship with Europe from post-World War II years to present.

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Margaret Thatcher's surprise successor as prime minister, far more pragmatic John Major, was keen to “rebuild shattered fences" within Europe, even while keeping Britain out of single currency. “Game, Set and Match to Britain," he claimed, at conclusion of summit in Dutch town of Maastricht in 1991, when he negotiated British opt-outs from single currency as well as bloc's social provisions. Even though he mand to heal European divide within his party eugh to win 1992 general election, his government would soon descend into open warfare over Europe.

Though Major h negotiated opt-out from looming single currency, he h pushed in his previous guise as Britain's Treasury chief for pound to join European Exchange Rate Mechanism or ERM. This involved member currencies effectively floating within narrow ranges against powerful German Deutsche Mark.

But it ended in humiliation for Major and Britain. Hedge funds and Hungarian billionaire George Soros bet against pound — and won. Sept. 16, 1992 became kwn as “Black Wednesday” — a day that saw British government humbled and seemingly out of control. Though pound’s exit from ERM was an ecomic shock almost unparalleled in post-war period, it was seen as a gift by more euroskeptic, or by w euro-hostile, elements within Conservative Party.  growing tension with Europe was particularly evident during m cow's disease outbreak in Britain in 1996, which prompted Brussels to ban imports of British beef. Major sought to bring an end to EU ban and eventually said Britain would longer cooperate in EU business until it h been lifted. By June 1996, a framework to lift ban was agreed but relations h clearly been strained.

Major didn't get any of credit of ensuing boom that was partly due to lower pound following its exit from ERM — he and his government would be forever tainted by what h occurred on Black Wednesday. In 1997, pro-EU Tony Blair led Labour Party back into government for first time in 18 years, with as benign an ecomic backdrop as any new prime minister could possibly wish for. Euroskepticism appeared to be in retreat but behind Blair’s landslide majority lay first seeds of 2016 Brexit vote.  Referendum Party, founded and led by billionaire James Goldsmith to promote ar vote on Britain’s EU membership, mand to get 2.6% of total votes cast, mostly former Conservatives. It may t sound like much, but Goldsmith me a lot of ise. When party disbanded after election and Goldsmith died, UK Independence Party took on baton. Boy did it — and UKIP's n chairman Nigel Far — run with it.