British Chancellor of the Exchequer, Mr Gordon Brown, will on Monday attempt to end weeks of damaging uncertainty about policy towards a European single currency with a statement that the UK is preparing to join after the next general election.
His long-awaited statement to the Commons will reflect "the government's positive approach to Europe and pragmatic approach to monetary union" according to Downing Street.
It will also "allow business to make their preparations" and would be "right for the long term".
However, the prime minister and the chancellor are under intense pressure from big British companies to disavow recent Treasury briefings that the government will categorically rule out sterling's membership of a single currency for the lifetime of the current parliament.
"It is unnecessary and potentially harmful to the UK's business and economic interests to totally exclude the possibility of entering from 2001 onwards," said Mr Adair Turner, directorgeneral of the Confederation of British Industry.
Over the weekend, industry leaders will attempt to persuade Mr Tony Blair through private channels to leave open the theoretical possibility of joining EMU at any time after 1999.
Downing Street said Mr Blair would continue to be "intimately involved in drawing up the statement" and the cabinet would be informed of the final wording on Monday morning. CBI members are bemused by what they see as a volte face by Mr Brown. It emerged yesterday that as recently as July he urged the CBI not to issue a statement against sterling joining at the 1999 launch.
Mr Brown will attempt to meet industry's concerns by saying the government is committed to preparing the UK economy for membership after the election.
