New Europe minister named

MacShane has won promotion within the Foreign Office

Rotherham MP Denis MacShane has been named as the new Europe minister as Tony Blair completed the government reshuffle forced by the surprise resignation of Estelle Morris.

Peter Hain, who was Europe minister, was last week promoted to the cabinet as Welsh Secretary but his successor was not named until Monday.

The appointment is promotion within the Foreign Office for Rotherham MP Dr MacShane.

His previous role as a parliamentary under-secretary is taken by Harlow MP Bill Rammell, who is replaced as a government whip by Lincoln MP Gillian Merron.

Foreign Office experience

The Europe minister post has usually gone to ardent advocates of the euro.

Before 2001, Dr MacShane served as parliamentary private secretary to a succession of Foreign Office ministers, including former Europe Minister Keith Vaz.

Peter Hain caused controversy as Europe minister

The former journalist caused embarrassment after President Chavez of Venezuela was deposed in 2002, describing him as a "ranting, populist demagogue" - two days before he was restored to power.

Mr Hain will remain a member of the convention planning the future shape of the European Union.

But Dr MacShane could have a key campaigning role if a euro referendum is called in coming months.

The government's five economic tests for euro entry are due to be judged by June next year.

If ministers decide adopting the single currency is in the UK's interests, they have promised to recommend joining in a referendum.

Euro impact?

The pro-euro Britain in Europe campaign group welcomed the promotion of Dr MacShane, saying he had long supported its campaign.

"But it would be wrong to draw an inference from this appointment on the timing of a referendum on the euro.

"That will depend on the assessment of the Treasury's five economic tests - nothing more, nothing less."

George Eustice, campaign director of the No Campaign, which opposes euro entry, also said the appointment did not pave the way for a new push for the single currency.

"Denis MacShane has long been obsessed by the euro but if the government was serious about launching a pro-euro campaign in the short term, they would probably have appointed someone with more campaigning ability.

"However, the decision about whether or not to hold a referendum will be dominated by Tony Blair and Gordon Brown and the rest of the cabinet will have very little influence."