the snake in the tunnel

Following a referendum in France the day before that admitted the UK, Ireland and Denmark into the Common Market, on this day in 1972 at a summit in Basel the members of the European Economic Community agreed to install an exchange system to limit fluctuations in rates in order that the basket of European currencies would be consistent with the US dollar. With the titular nickname (Schlange im Tunnel, le Serpent monétaire européen), the arrangement was the first attempt to peg the Mark, the Franc and the Pound Sterling to one another that ultimately led to the creation of the euro and was precipitated by the Nixon Shock of the previous year with the repeal of the Bretton Woods system. This coordination, cartel was a method to control appreciation and depreciation and retain relative stability until the following year when the dollar began to float freely and member nations diverged in their response.