1992 - 1993

European Monetary System crisis

In 1992, in the wake of Denmark's rejection by referendum of the Treaty establishing Economic and Monetary Union, financial markets became jittery. The campaign for the French referendum on the same issue heightened concerns about the future of the single currency project. Attacked by specu-lators (in particular, hedge fund managers such as George Soros), the pound sterling, the lira and the peseta were to be devalued or to leave the EMS. In 1993, the French franc was again attacked by fin-ancial markets. The EMS fluctuation band was then widened to + / - 15%. This put an end to specu-lative attacks.