Brown 'is ducking' the euro

Sterling's strength against the euro hurts manufacturing

Chancellor Gordon Brown has been accused of "ducking" the key political issue of joining the euro by AEEU general secretary Sir Ken Jackson.

Speaking ahead of a keynote address to a conference of the Amalgamated Engineering and Electrical Union, Mr Jackson called on the government to put forward a "clear and credible policy" on the single currency.

The chancellor is ducking it at this time

Sir Ken Jackson

In his speech he is expected to tell AEEU delegates at their industrial conference in Blackpool that the government's 'wait and see' policy could disintegrate during the course of a general election campaign.

In response the prime minister's spokesman said that government policy on the single currency would not be changing ahead of the election.

Job fears

Sir Ken fears the threat to manufacturing industry should the UK remain outside the single currency zone. He says that up to three million jobs could be lost unless the UK sets out a firm intention to sign up to the euro.

The speech highlights divisions within the cabinet on the issue, with some ministers more keen for a more pro-euro stance than others.

The union leader told the BBC: "There are quite a number of ministers who think this is the most important issue that is facing us. We can't duck it, we can't say it doesn't exist."

Sir Ken Jackson: Strong attack on the Chancellor

He said it was time for the government to "get off the fence and make your position quite plain".

"The chancellor is ducking it at this time," he said, and added that the he was not surprised that polls suggest the majority of people are against entry as little has been done by single currency supporters to move the debate forward.

During the conference the AEEU leader will also ask the government to convene a special summit to discuss help for the UK's steel industry, which is under pressure because of the weak euro.

Cabinet split

The AEEU general secretary is scheduled to share a pro-euro platform with ex-Conservative Chancellor Kenneth Clarke even as he falls out with Gordon Brown.

The chancellor is thought to be one of those Cabinet ministers who want Labour to remain quiet on the issue of a single European currency until after the next general election.

The opposite view is believed to be held by an alliance of Peter Mandelson, Robin Cook and Stephen Byers, who think that the government should be take much more of a leading role in the euro debate.

Sir Ken's comments follow European Commission President Romano Prodi remarks on Sunday when he said the UK would find it "difficult" to stay out of a successful single currency.