Brown denies sidelining euro

Mr Brown has criticised the structure of EU institutions

Chancellor Gordon Brown has attempted to reassure euro supporters he would support Britain's membership of the single currency under the right economic circumstances.

In an interview for GMTV's Sunday Programme, Mr Brown responded to concerns from the pro-euro camp that he is about to rule out joining indefinitely.

Mr Brown will publish the Treasury's assessment of the five economic tests for entry before 7 June, and is expected to say Britain is not ready.

But he is under growing pressure from the pro-euro lobby to set a date for a referendum on the issue, before the end of this parliament.

Mr Brown told GMTV: "I have always been pro-Europe. And by history, by geography, by economics we are very much part of Europe.

'Tory dogma'

"It would be entirely the wrong policy to take the Conservative Party's view on this issue.

"They would refuse to join the euro even if it was in the national economic interest to do so.

I think there should be a `sixth test' on what is the opportunity cost of not going in

Helen Liddell
Scottish Secretary

"That is to rule out the euro on grounds of dogma, something that is unacceptable to me."

Mr Brown's comments, in which he also urged reform of EU institutions, came after a day of mounting pressure on the government to set a timetable for a referendum on the euro.

His Cabinet colleague, Scottish Secretary Helen Liddell, told The Sunday Telegraph the impact of not joining should be calculated.

She said: "I think there should be a 'sixth test' on what is the opportunity cost of not going in.

"We could have a situation in which 24 countries are in one currency and we are in another.

"That has implications for inward investment, in jobs and we need to specify what that cost would be."

'Britain's economic interests'

Robin Cook, who stepped down as Commons leader over the Iraq war, said Britain should "stop dithering about if we are going in" and recognise "we are going in" and set a date for entry.

He argued that Britain could not expect to remain at the "core" of Europe if it remained outside the euro.

The euro debate is intensifying

"If we want to make our way in the world, we do have to have a strong base within our own continent," he told the Sunday with Adam Boulton programme on Sky News.

Mr Cook said it was in Britain's economic interests to be in the euro, especially as trade within the euro-zone had increased faster than trade in the UK.

Last in?

He insisted the public would back the euro because it "understood" that Britain's economic standing in the world depended on the country's relations with its European partners.

"They would not welcome being left out in the cold and, ultimately, the decision we have got to ask ourselves is 'are we really willing to contemplate being the last country in Europe not inside the euro?"'

While Mr Brown had a "central role" to play in the decision on British membership of the single currency, Mr Cook stressed the decision to join should be taken by the cabinet "together".

Conservative leader Iain Duncan Smith called on Mr Blair to hold a referendum now.

'Dithering Blair'

Mr Duncan Smith said: "He believes in the euro on principle but he doesn't want to give the British public the chance to say no, which I think they will."

Earlier on Saturday, a leading pro-euro campaign group, Britain in Europe, warned it will collapse and suffer mass resignations unless a date is set.

And Conservative former Deputy Prime Minister Lord Heseltine also accused Mr Blair of "dithering" over the single currency.

Some Sunday papers suggest the prime minister is acting to quell such accusations.

The Independent on Sunday says Mr Blair is trying to persuade the chancellor to agree a "road map" to joining, including a poll before the next election.

And the Observer says Mr Blair is to allow ministers to campaign in support of joining the euro, although all five tests will not be met.