Blair says decision on euro is 'close'

BRITAIN: Tony Blair unleashed another bout of speculation over the UK's decision whether or not to join the European single …

BRITAIN: Tony Blair unleashed another bout of speculation over the UK's decision whether or not to join the European single currency last night when he acknowledged the decision on the euro is getting "close" and said to stay out would be a "betrayal".

In the second part of an interview with the BBC's Newsnight programme, he said that economic blocs were developing in America and Asia as well as Europe. "The whole world is moving closer together. What should we do with all the strengths of our history? Should we stand apart from the alliance right on our doorstep as a country? It would be crazy to do that." He reiterated that the decision would be "economic not political". "If it is right for British jobs and investment . . . it is the right thing for us to do then as a country." His remarks were widely interpreted as a hotting up of the pro-euro rhetoric.

Mr Blair confirmed his commitment to deciding on the euro by June next year. "I can't start specifying to you the weeks or months in which that will happen. Obviously once the [economic assessment] tests have been passed, it is a live and active issue," he said. Pressed by interviewer Jeremy Paxman on whether it was getting close, he said: "Yes, it is." The "national changeover plan", published last year, predicts a four-month campaign once the cabinet decides to go in and then a two-year period between a Yes vote and entry.

If the decision to go in was taken at cabinet level next summer, there could be an autumn referendum which would lead to the introduction of the euro after a 2005 general election.