Mandelson queries euro strategy

Peter Mandelson is one of the most pro-euro ministers

Ministers have sought to play down accusations of a serious split in policy towards the euro following reports that Peter Mandelson had described pro-Europeans as having made strategic errors.

The Northern Ireland secretary, one of the strongest pro-European voices in Tony Blair's cabinet, apparently made the remarks at a private dinner.

I didn't see anything in Peter's words to say we had made a mistake

Robin Cook

He told the gathering that solely economic arguments should not be used to persuade the public to back the euro.

"Pro-Europeans are making a mistake if they fail to appreciate the need for political and constitutional arguments," he added.

Split denied

The prime minister's official spokesman said Mr Mandelson's comments did not indicate a cabinet split on Europe.

He said it would be hard to find a minister who has not suggested there are political and constitutional questions associated with economic union.

I think we are seeing the divisions in the cabinet opening up again

William Hague

"But the EU is an economic union so economic conditions have to be met," the spokesman added.

Mr Mandelson later also stressed that his comments were about pro-Europeans rather than the government, and so did not amount to a rebuke of Mr Blair's policy.

His comments come as Foreign Secretary Robin Cook was preparing to deliver a major speech on the benefits for the UK of engaging with Europe.

Mr Cook also down played the importance of Mr Mandelson's remarks.

He told BBC Radio 4's Today programme: "I didn't see anything in Peter's words to say we had made a mistake."

Turning to his speech on Europe scheduled for later on Thursday, Mr Cook said it would be in Britain's interests to be "fully engaged" in the European Union and the single currency.

He added: "But that does not mean to say that we have to be [in the euro].

"The key issue is whether or not it is going to be in the economic interests of our people. And if it is not, then we should not [join]."

Planning for a referendum

Mr Mandelson was quoted in the Financial Times as stressing the importance of keeping in step with public opinion.

He said: "Just because we have resolved in our mind that there is no constitutional bar, you should not assume the public are in the same position and [we] must make that case now.

"It is essential to pave the way for a referendum."

Labour's 'true agenda'

Conservative leader William Hague said Mr Mandelson's comments that the euro was more than an economic issue highlighted Labour's "true agenda" on Europe.

And he accused the cabinet of being split on their tactics for joining the single currency.

"I think we are seeing the divisions in the cabinet opening up again," said Mr Hague during a campaign trip for the Glasgow Anniesland by-election.

"They all want to joint the euro as soon as they can, but some are being more honest about it.

"I think we are seeing in Peter Mandelson's statement ... the real agenda of the government, that clearly they want to abolish the pound, they want to join the euro."

'Courage needed'

Liberal Democrat foreign affairs spokesman Menzies Campbell said Mr Mandelson appeared to be echoing what his own party has been saying since 1987.

"The case for Europe has got to be argued with skill and commitment.

"It is naive to think that the next general election can be fought in a European vacuum.

"The merits of the case are overwhelming.

"All that is needed is the courage to argue for Britain's interests," Mr Campbell said.