Blair signals support for euro at party conference

BRITAIN: The British Prime Minister Mr Tony Blair yesterday signalled his growing support for the single currency when he declared…

BRITAIN: The British Prime Minister Mr Tony Blair yesterday signalled his growing support for the single currency when he declared that it was time for his government to "have the courage of its convictions" on the euro.

To the delight of pro-Europeans, who fear that a referendum may be delayed until after the next general election, the prime minister said he was determined to "push forward".

Speaking on the first day of the Labour conference, Mr Blair insisted that a referendum would only be held if a series of economic tests are met.

But he added: "This is the time for us to have the courage of our convictions and push forward. There's no point in being in government otherwise." His remarks were designed to answer pro-European critics who claim that the prime minister has shown rare signs of weakness by refusing to give a lead on the euro.

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The pro-Europeans were also cheered when Mr Blair said that a conflict with Iraq would not delay a referendum.

Asked on BBC1's Breakfast with Frost whether a conflict with Iraq would delay a euro poll, Mr Blair replied:

"I have never quite understood that one. You do whatever is right." The Labour leadership will also send a powerful signal of its support for the single currency by allowing the pro-euro Britain in Europe group to post a leaflet to every Labour party member next month.

The slick colour leaflet, which says that the euro will help "public services, jobs, living standards and internationalism", will be distributed with the ballot forms for the selection of the party's MEPs for the next European parliament elections in 2004.

A pro-European Labour source said: "This is about educating our party members. They, along with the Liberal Democrats, will be the foot-soldiers in any referendum campaign." The leaflet is also designed to counter the increasingly effective campaign of the Labour Against the Euro group, known as Late. The group, which is dismissed by its opponents as Latte, is warning that British membership of the euro would jeopardise the government's ambitious investment plans for the public services.

Mr Neil Kinnock, the former Labour leader who is now a European commission vice president, dismissed Late's campaign: "For decades sustained investment in public services has been sabotaged by currency instability. To get sustained improvement in vital public services you need currency stability. To get currency stability you need to join the euro." Speaking at a Britain in Europe fringe group, Mr Kinnock turned his fire on Labour anti-euro groups, the latest of which is known as Tusc - trade unions against the single currency.

"I think that Tusc is an extremely appropriate acronym. The Tyrannosaurus Rex had a small tusk. It ruled the world but expired because its brain was the size of its tusk."

The Europe minister, Mr Peter Hain, said public services would benefit from an investment boost by joining the single currency.

Mr Hain attacked Conservative policies on the euro claiming it was "not just no to the euro but no to Europe too". - (Guardian Service)