TORY candidates flaunted their opposition to a single currency in defiance of Mr John Major's "wait-and-see" policy last night, as Europe threatened to resume centre-stage in the election campaign.
And the Prime Minister was accused of a failure of leadership after rejecting opposition calls for the dismissal of a junior minister seemingly in breach of the cabinet line.
Despite their own apparent U-turn on the currency issue, Labour moved swiftly to exploit the controversy sparked by Agriculture Minister, Ms Angela Browning. In an election newsletter, Ms Browning told constituents she could not support the handing over of gold and foreign currency reserves to a Central European Bank, one of the key requirements of monetary union.
The MP for the "safe" seat of Tiverton and Honiton said the consequence of this would be "the end of sovereignty, of the nation state, and if that is what is offered I have made it very clear that I will not support it."
Her outspoken intervention came amid renewed speculation that between 150 and 200 Tories are preparing to come out against the single currency in their personal election addresses. Many of. them are accepting the offer of financial support from a millionaire businessman who opposes the currency.
Mr Paul Sykes said it would probably cost him around £500,000: "But it's worth it. The argument is moving our way." His involvement prompted a swipe from Mr Paddy Ashdown, who derided Tories moving "from cash for questions to cash for quotes in one single bound."
Conservative officials made it clear last night that individual Tory candidates were entirely free to express their views on the issue, but the position of ministers was obviously a different matter.
Shadow Foreign Secretary Robin Cook - who on Sunday virtually ruled out British membership of the currency in the life of the next parliament - led the Labour attack. He claimed Ms Browning was inventing her own policy and said if Mr Major did not dismiss her "he forfeits all rights to lead the government of Britain."
But at his morning press conference a clearly relaxed Mr Major brushed aside the charge: "I have actually seen the statement that Ms Browning has put out making it clear verbally and in writing that she supports the approach that we negotiate and decide." He stressed there was a great deal of negotiation still to come, and an equally great deal of misunderstanding about how far the discussions had gone.
But there was no misunderstanding the message from Mr David Porter, seeking re-election in Waveney, who declared: "I will never vote in a free British parliament to abandon our currency and reserves. I believe we should have a referendum of the British people before any such step is contemplated, and before we go any deeper into Europe and whether we should even stay in the EU."
Mr Nick Budgen, in Wolverhampton South West, declared: "I am proud to have voted against all measures likely to lead us further into a federal Europe."
Mr Graham Riddick, defending in Colne Valley, has pledged to "do whatever I can to stop the abolition of the pound and its replacement by a single European currency." And he thanked Mr Cook for advertising his position and for "making it clear to the British people that the instinct of the majority of the Conservative Party is not to give any further powers to Europe."
Provided ministers strictly observe the agreed line, Conservative Central Office is apparently confident the party's European tensions need not escalate. But the irony yesterday was that Mr Cook was able to exploit those divisions, days after shifting Labour's position to the Euro-sceptical right of Mr Major's.
And the recurring nightmare for Conservative strategists is that, if the party abandons hope of victory closer to polling day, open warfare could resume as candidates for the leadership succession are tempted to stake their claims.