The Prime Minister, Tony Blair, has hailed what he calls a "patriotic alliance" of parties behind Britain taking a central place in Europe.

BBC Political Editor, Robin Oakley reports from the Hague (2' 09")

Speaking in The Hague in the Netherlands, Mr Blair said a new consensus was developing between politicians from all parties in Britain and that the government planned to set up a committee drawn from those politicians to help develop policy.

Driving home his pro-European, but pro-reform message, he said: "The issue of Europe is beginning to break down the old political barriers in Britain.

"Politicians from all parties are slowly coming together in a patriotic alliance in favour of Britain's central place in Europe.

"It is an alliance of people who believe that our future prosperity can be shaped by a successful Europe."

Third way

The Prime Minister also spoke of "a new third way" saying Europe must not lose sight of ordinary citizens as it pushes toward a single currency.

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He cautioned the EU nations not to forget the daily struggles of their people as they cut budgets in the race to qualify for the euro, the common European currency set to make its debut on January 1, 1999.

"Europe has to find its own way - a new third way of combining economic dynamism with social justice in the modern world," Mr Blair said.

Tony Blair hopes to find a 'third way' during the UK presidency

This "third way" should go beyond the commitment to a free and open market and strive for government that works with the marketplace "to ensure a highly adaptable workforce, good education, high levels of technology," he said.

Britain has taken a wait-and-see approach toward monetary union, but Mr Blair said there were no constitutional obstacles to Britain joining and that he hoped a decision whether to join would be taken "early in the next Parliament".

Britain has said it will deal with the issue after the next parliamentary elections, which must be held by 2002.

"The test is whether the economic benefits of EMU are demonstrably clear and unambiguous," Mr Blair said, adding: "We want it to succeed and we will work hard to make its launch successful.

"We believe a single currency can make sense in a single European market." Mr Blair said the main thrust of Britain's six-month EU presidency was to bring the EU "closer to the people".

"This is the overriding priority of our presidency: to help create a Europe working for the people, to make them feel more prosperous, safe and free because of what the European Union is doing," he said.
 

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