Swedish Prime Minister, Mr Goran Persson denied yesterday that his country was increasingly isolated over its stance towards European economic and monetary union. "We are in almost exactly the same position as the British government and the Danish government. We have said that we want to wait and see and we will not participate at the start," Mr Persson said.

Mr Persson was speaking after meeting British Prime Minister, Mr Tony Blair, with whom he discussed a range of European issues.

Britain is committed in principle to joining the single European currency but will not scrap the pound until after the next election, which must be held by 2002.

Sweden has said only that it will not join EMU at its 1999 start date. It plans to test public opinion, either via a referendum or an election, before it makes any decision to join and has not said when that will be.

"We are strong enough to enter. We are strong enough to wait," he said.