Senior European political figures have pledged their support to the euro and have called on Britain to give the project a further boost by setting out as soon as possible when it will join.

European Commission President, Mr Jacques Santer, gave a strong speech in support of the move to the single currency. The euro will provide economic stability and ensure peace in Europe for centuries to come, he said. It will also help create jobs by boosting competitiveness.

Mr Dominique Strauss-Kahn, the French minister for Finance, insisted that there is no conflict between competitiveness and social issues or indeed, the French 35-hour week.

But Mr Philippe Maystadt, the Belgium deputy prime minister and finance minister, said the one thing which may hold the euro back is uncertainty about the British entry.

He said that if Britain were to join it would give a boost to the euro. "It would be preferable that uncertainty about the timing of British entry should be dispelled as soon as possible."

It was left to a central banker, Mr Otmar Issing, the chief economist at the Bundesbank, to get back to basics.

He confirmed that the new European Central Bank will have to set a specific inflation target as a gauge of where to set interest rates.

At the moment, the Bundesbank uses a monetary target, the money supply, but adopting this for Europe is thought to be riddled with technical problems.

Meanwhile, Sir Leon Brittan appeared to rule out the French candidate, Mr Trichet, for the top central banking job.

In what was seen as clear backing for the German favourite Mr Duisenberg, he said: "The issue should be resolved in a way that confirms and supports the independence of the European Central Bank.

"The UK should use all its influence over the next six months to get this sorted out," he added.