Euro decision prompts call for collective responsibility
Prime Minister Tony Blair and ‘Iron Chancellor’ Gordon Brown appear at loggerheads with cabinet colleagues over the timing of the decision on the five economic tests, billed as the key mechanism determining whether the UK joins the 12 European Union nations using the euro.
Cabinet divisions on the single currency were given a public airing yesterday after Leader of the Commons John Reid warned Gordon Brown not to delay the decision until after the next general election and to involve cabinet ministers in deliberations.
Although some anticipated the verdict would come this week or next, it now appears Chancellor Brown will make the decision by June 7. He said on Sunday morning the decision would be made by ‘the first week of June.’
Mr. Reid said the euro decision, whichever way it went, would ultimately be made by the ‘first Lord of the Treasury’, Tony Blair, but it ought to receive the collective blessing of cabinet ministers as well.
However, in a more upbeat tone, he said the decision would be not on whether to join the euro but when to join.
On ITV’s ‘Jonathan Dimbleby’ yesterday, he said: ‘It’s quite clear that the triple lock on this decision has always been Cabinet, Parliament, and ultimately the chief arbiters will be the people, and they will have a referendum.’
Cabinet minister Helen Liddell criticised the manner in which the decision was set to be delivered by the Chancellor and PM and not by Cabinet as a whole.
The Scottish Secretary said: ‘This is probably one of the most momentous decisions we are going to make. It should be for the whole Cabinet. It cannot simply be delivered to us by the Chancellor like the Budget.’
Chancellor Brown said yesterday he was not a euro-sceptic. ‘By history, by geography, by economics, we’re very much part of Europe.’
Labour MP Sion Simon said on BBC One’s ‘The Politics Show’ that Government prevarication on the issue would be disastrous for Britain both in economic and political terms.
‘If we’re not in the euro, we’re a second-class irrelevance in Europe, and we will never punch our weight in the world economically or politically.’
It comes as an open letter to the PM from leading businessmen, including Sir Chris Gent, chief executive of Vodafone, Peter Sutherland, chairman of BP, and Lord Simon of Highbury, the former Treasury minister, beseeched Tony Blair not to rule out joining the single currency before the next general election.
25 business leaders signed the letter which contended that if Britain were to end her ‘pre-entry country’ status, the move would constitute a ‘major change in the business climate.’
The letter said: ‘The working assumption of business has been that Britain is a ‘pre-entry’ country. If it becomes apparent that this is no longer the case, the Government must be aware that will constitute a significant change in the business climate of this country.
‘Commercial reality strongly dictates that the risks of staying outside the euro far outweigh any risks of joining. The European single market has moved on and we are no longer full members. We hope that the Government will have the courage of its convictions and recognise that membership of the euro is in our long-term national interest.’
