Mandelson re-opens euro row

Mandelson made remarks at private dinner

By BBC News Online's political correspondent Nick Assinder

No matter how hard Tony Blair tries, the cabinet row over the euro keeps on breaking the surface.

The latest eruption has seen Northern Ireland Secretary and leading pro-European, Peter Mandelson, allegedly claiming ministers had made errors in their strategy on Europe.

His comments, which will infuriate his cabinet opponent Gordon Brown, are said to have been made at a private dinner.

And they come shortly after he signalled that he believed a referendum on Britain joining the euro was a long way off.

The suspicion is that Mr Mandelson believes a great deal of persuasion is needed if British voters are ever to be won over to the euro - and the campaign should start now and be on many fronts.

It is inconceivable the prime minister was not aware of what his closest friend and adviser would be saying.

Highly significant

What Mr Mandelson was in effect saying was that ministers should be ready to sell the euro on political and constitutional grounds, not just economic ones.

Brown wants euro on back burner

And his comments appeared to betray a fear that there is a deeper opposition to the euro amongst voters than the government has previously accepted.

The fact that his remarks found their way into a national newspaper ensures they will re-open all the talk of cabinet splits on the issue and be seen as highly significant.

Lately it had appeared Mr Blair had sat on his ministers and insisted they all sing from the same hymn sheet.

Mr Brown was happy with that because it meant they simply had to repeat the mantra about meeting the five economic tests.

He wants the whole issue to be put on the back burner fearing it will prove an election loser.

But, apart from again re-igniting the cabinet split over the euro, Mr Mandelson's comments have suggested Mr Blair may be ready to sanction a more robust pro-euro campaign.

Deeply confused

Voters, meanwhile, must be deeply confused about the government's position.

Only days ago the prime minister appeared to signal a watering down of the government's position by declaring that, if there was a referendum on entry today, he would vote "no".

That may not have been a change of policy, but it was a clear change of tone.

Then, this week, both Mr Blair and Foreign Secretary Robin Cook delivered robustly pro-European speeches.

This was seen as part of a concerted campaign to sell the benefits of the EU, while at the same time trying desperately not to mention the euro.

The Tories, who have their own problems over the euro, have immediately claimed that Mr Mandelson was attacking Mr Blair's strategy.

That seems highly unlikely, but it is certainly true that Mr Mandelson's comments have re-opened the whole debate over the government's approach to euro entry.