William Horsley: Schröder wants Britons to be better Europeans

Mr Schröder is in London on his first foreign trip since taking office last week, for talks with UK Prime Minister Tony Blair.

In an interview with the BBC, Mr Schröder welcomed what he saw as increasing moves by the UK Government to prepare public opinion for a decision to join the European single currency.

"I believe the British position on Europe has developed in a way which is to be welcomed, and that is why it was a foregone conclusion for me to come here," the chancellor said.

Mr Schröder said the UK's leading role in Europe would increase proportionately if it became a member - implying that it cannot rank alongside big powers in the European Union like Germany and France until it does so.

But he emphasised it was for Mr Blair and his colleagues to decide on the path to take towards joining the single currency.

The UK Government has said it wants to adopt the euro, but only when economic conditions are right. The pre-budget statement expected this week from UK Chancellor of the Exchequer Gordon Brown is expected to map out plans for the UK's moves towards the single currency.

Common ground

Mr Schröder - dubbed "Herr Blair" by British tabloids because of his role in the revival of left-of-centre politics - also said he had great regard for the UK premier's policy initiatives: "I think Britons and Germans can learn a lot from one another, for example where the reform of social insurance systems is concerned," Mr Schröder said.

Mr Schröder's "Neue Mitte" (New centre) philosophy, which he defined as economic modernisation combined with social justice, has often been compared with Mr Blair's idea of the "Third Way".

Mr Blair has already promised to use the opportunity of Mr Schröder's visit to discuss ways in which Third Way ideas can be applied in the wider European context.

Writing for the German newspaper Welt Am Sonntag ahead of Mr Schröder's visit to the UK, Mr Blair envisaged a combination of democratic socialism and liberal ideas based firmly within European politics.

Another priority of the German chancellor's visit is to look at ways in which Europe can survive the current global economic downturn.

His trip will include a meeting with business leaders at the CBI conference in Birmingham.