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Wednesday, September 15, 1999 Published at 15:15 GMT 16:15 UK


Business: The Economy

Unions back moves towards euro

Trading in the euro began in January

Delegates at the TUC conference have backed moves to pave the way for the UK to join the single currency despite signs of deep rifts over the issue.


The BBC's Nicholas Jones has the latest from the conference
The government also came under a scathing attack from union leaders for failing to provide a lead in the national debate on Europe.

Conference99
The conference comfortably approved a call to cut interest rates and lower the value of the pound, to give the UK "the option of actively pursuing entry [into the euro] early in the new decade".

But although the motion was carried on a show of hands, it was opposed by the Transport and General Workers Union and Communications Workers Union.

The UK's largest union Unison and shopworkers union Usdaw abstained.

TUC General Secretary John Monks condemned the government's failure to argue the pro-European case in the June Euro-elections, dubbing Labour's efforts a "non campaign".


[ image: John Monks: Labour must do more to promote the European cause]
John Monks: Labour must do more to promote the European cause
And John Edmonds of the GMB told delegates: "We would love to follow a lead from the government."

He warned: "We cannot allow the single currency debate to be dominated by a bunch of Tory Eurosceptics."

He accused the government of fighting the European elections - which the Tories won - with "no answer to the most pressing question in European politics".

'Euro is our lifeline'

Sir Ken Jackson of the Amalgamated Engineering and Electrical Union called on the government and the TUC to start campaigning actively for Europe.

The debate on Europe had for too long been allowed to be "hijacked" by anti-Europeans calling themselves Eurosceptics, he told delegates.

European single currency
"For too long we have let them get away with it,'' he said.

"I say we need to start the fight back for Britain in Europe."

He warned that if the UK stayed outside the euro manufacturing industry would steadily decline, and those who thought differently were living in a "fool's paradise".

"We know the reality. We know that the single currency is our lifeline. It's our future."

'Blank cheque for cuts'

But TGWU General Secretary Bill Morris warned moving towards joining the single currency would provide the government with a "blank cheque" to cut public spending to meet the economic criteria for entry.

Hundreds of thousands of public sector jobs were at risk, he said.


[ image: Bill Morris: The euro could cost jobs]
Bill Morris: The euro could cost jobs
"We will not stand by and see [them] sacrificed on the altar of the single currency", he said.

His concern was echoed by Rita Donaghy of Unison, who warned the drive to join the euro would add to downward pressure on public spending.

But in an attack on Chancellor Gordon Brown, Mr Edmonds insisted the UK had already met the requirements for joining the euro and any cuts in public spending would be entirely the government's fault.

"I'm afraid to say that because the public finance coffers are very full the decision about how much money we spend on public services is not one which will be made in Brussels - it will be made, as it is now, in the Treasury," he said.



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