UK's Europe Minister urges caution on euro

Britain's new Minister for Europe Mr Peter Hain said today that London should take a cautious approach to possible entry to the…

Britain's new Minister for Europe Mr Peter Hain said today that London should take a cautious approach to possible entry to the euro single currency.

Speaking to reporters at the European Union summit in Sweden, Mr Hain, who only became Europe Minister last week after Labour Prime Minister Mr Tony Blair won a landslide election victory, said the debate over the euro in Britain should be cooled.

"We've got to cool the debate and do everything step by step and very cautiously," Mr Hain said.

Mr Hain's view was echoed by Foreign Secretary Mr Jack Straw, who also took up his new post last week.

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Mr Straw said Britain should take time for a period of calm reflection on whether or not to join the 12-member currency club.

"It is important that if the case is made [for euro entry] the case is made calmly", he said.

Mr Blair has pledged to take Briatin into the euro only if the economic conditions are right and only after the British people approve such a move in a referendum.

Mr Blair's only promise is to make a judgment of Britain's readiness to join within two years. He has declared that a referendum is winnable, although opinion polls show a majority of Britons oppose scrapping the pound in favour of the euro.