BRITAIN: The British Prime Minister, Mr Tony Blair, maintained yesterday that a referendum on the euro was still possible before the next election but said there was no point "giving odds on it", writes Frank Millar, London Editor.
Mr Tony Blair was speaking at a joint press conference with the Chancellor of the Exchequer, Mr Gordon Brown, on the morning after Mr Brown had delivered his "not yet" verdict on the Treasury's assessment of the five economic tests for Britain joining the single currency.
Mr Blair rejected suggestions that his government had failed to prepare for membership of the euro over six years in power and insisted Mr Brown's statement on Monday had significantly changed the situation, in that "we can now, on the basis of the detailed assessment, be precise about the economic benefits to Britain."
Mr Blair anticipated significant progress in the coming year in the reforms announced by the chancellor "to remove the obstacles" to successful British membership of the currency. And while the issue would only be determined in the national economic interest, Mr Blair said people would see "a definitive change of gear in the way that the government approaches this issue."
Mr Brown echoed the prime minister's promise of a series of speeches and roadshows in a new campaign to build a pro-European consensus, which Mr Blair said was "the proper and modern expression of the true British national interest."
Mr Blair said: "It is time to make the argument for Britain in Europe, to take on those who believe if we are pro-British we must be anti-European, to defeat the false case that if Britain is a full-hearted member of the EU we lose our identity as a nation and to show, in a world that is moving closer and being transformed by globalisation, it would be a cruel denial of our own proper self-interest to cut ourselves adrift from the major strategic and economic alliance on our doorstep."
Sustaining his own newly enthusiastic pro-European rhetoric, Mr Brown said ideas important to Britain were moving Europe "from the old trade-bloc Europe, obsessed by its internal rules, to a Europe that is forced to look outwards to America on economic matters, and facing up to global competition, opening up to global reform."
Mr Brown concluded: "I believe that those in Britain who have been ambivalent, apathetic, or antagonistic towards the way the old trade-bloc Europe worked can be persuaded that an enlarged Europe being shaped by ideas in line with British values is in the British national economic interest." Therefore, he continued, he and Mr Blair would "put the patriotic case for British engagement with Europe" and tackle anti-European myths and prejudices, showing "that engagement in Europe does not mean we have to choose economically between Europe and America, or accept that Europe will never reform, or find our national values submerged in Europe."
However, Mr Blair had to acknowledge that clearing the obstacles to British membership of the euro as per the chancellor's formula would also involve "crucial discussions" with European governments about Britain's need to retain the ability "to control and set taxes", as well as Mr Brown's demand for reform of the European Central Bank.
The director of Britain's "No" campaign, Mr George Eustice, echoed widespread scepticism that the chancellor's proposed domestic reforms to help achieve sustainable convergence between the British and Eurozone economies could be achieved in time for a euro referendum by autumn of next year.
Accusing Mr Blair and Mr Brown of making "a mockery of their own euro policy", Mr Eustice predicted: "The major obstacles to euro membership highlighted by the Treasury assessment will not disappear within the next nine months, and to distort the economy over the next year to try and achieve their political ambitions is a recipe for boom and bust."
Tough questioning yesterday showed that, before Mr Blair and Mr Brown can hope to shift public opinion in favour of the euro, they have much work to do to dispel the perception that it is in fact their personal rivalry and disagreement on the issue which is the biggest stumbling block to Britain joining the currency.
Mr Blair predictably chose to stick with the policy issue rather than "the soap" when asked whether there was a deal defining a point at which he would make way for Mr Brown to assume the premiership.
But the fact that they each declined the question twice - coupled with the belief of Labour Europhiles that Mr Brown has moved the debate in their direction - inevitably reawakened suspicions in Westminster that there might be something in it after all.