Margaret Thatcher that Foreign Secretary James Callaghan warned his fellow Labour Cabinet members in 1974 of the possibility of "a breakdown of democracy", telling them: "If I were a young man, I would emigrate." In mid-1978, the economy began to recover and opinion polls showed Labour in the lead, with a general election being expected later that year and a Labour win a serious possibility. Now Prime Minister, Callaghan surprised many by announcing on 7 September that there would be no general election that year and he would wait until 1979 before going to the polls. Thatcher reacted to this by branding
Premiership of Margaret Thatcher 1989, Lawson and Foreign Secretary Geoffrey Howe forced Thatcher to agree to the circumstances under which she would join the Exchange Rate Mechanism. At the meeting, they both threatened they would resign if their demands were not met. Thatcher responded by moving Howe to Leader of the House of Commons (despite giving him the title Deputy Prime Minister he was now effectively removed from decision-making over Europe) and by listening more to her adviser Sir Alan Walters on economic matters. Lawson resigned that October, feeling that Thatcher had undermined him. Thatcher continued to be the leading international advocate of a