Blair intervenes in euro dispute
Britain will only join the European single currency when the Treasury’s much-vaunted five economic tests are met in full, the Prime Minister has said.
In an interview with The Scotland on Sunday, Tony Blair clarified Labour’s stance on the euro, saying there was no case at present for the UK rushing headlong to embrace the fledgling currency.
Mr Blair’s interview came before Denis MacShane, Minister for Europe, reportedly said that Chancellor Gordon Brown’s five economic tests were, in reality, a “giant red herring”.
Setting the record straight, Mr Blair told the newspaper the final decision on the euro would be based on sound economic fundamentals, not political expediency or a reaction to contemporary exigencies.
“Over the single currency, there is some misunderstanding here,” he said.
“I have never been in favour of joining the single currency – never – except in circumstances where the economic conditions are right, because it is an economic union in the end
“Although I think the political benefits are clear in terms of our position in Europe, you can’t make a compelling case for joining the single currency at the moment and therefore we shouldn’t do it,” Mr Blair added.
Mr MacShane was reported as telling students in a speech at Durham University 10 days ago that: “On the euro and other things, we’ve waited for the economics to be right on that.”
“Although that was always a bit of a giant red herring.”
The Conservatives’ spokesman on Europe, Graham Brady, yesterday leapt on the apparent difference of opinion and emphasis, telling the BBC’s Today programme: “Denis MacShane has committed the cardinal sin really in the Blair government; he has committed the sin of telling the truth.
“He has made it very clear that the so-called five economic tests on the euro are just a red herring. They are a political fig leaf to cover the Government’s embarrassment over that.”
Matthew Taylor, chairman of the Liberal Democrat party, said Mr Brown’s five tests were concocted “on the back of the envelope” to suit the Chancellor’s wishes.
A Treasury spokesman said the Government’s position remained unchanged, adding: “In principle we are in favour of joining the single currency, in practice conditions must be right and our economic tests must be met.”
