A planned text explaining away the decline in the single currency's fortunes was radically re-written at the last moment amid fears that it would only make matters worse.

The euro has already slipped by more than 12% since its adoption by 11 nations on 1 January.

An EU official said that ministers were concerned any written statement might be taken as a sign of undue concern by jittery currency markets.

The EU leaders' final statement said: "A stable euro will increase Europe's ability to promote growth and employment".

It also contained a clause reaffirming the leaders' commitment to adhere to the Stability and Growth Pact, which obliges eurozone members to keep fiscal discipline.

Euro slide

ECB president Wim Duisenberg is struggling to regain the markets' confidence in the euro

The embattled euro meanwhile lurched to new lows of $1.0270 in Asian markets and $1.0313 in morning European trading.

On Friday afternoon the euro recovered somewhat, ending the day in London at $1,0339 and £0.6431.

Rolf Peffekoven, a member of Germany's influential "five wise men" economic advisory panel, said the euro would remain weak as long as doubts continue over the ability of Italy, Germany and France to keep to the stability pact's criteria.

Speaking with one voice

Another reason for the single currency's weakness has been the fact that different European officials have said different things about the euro.

EU finance ministers pledged informally to address this problem through greater self-discipline. Only one of the 11 eurozone finance ministers and European Central Bank president Wim Duisenberg are now supposed to make public comments on the euro's exchange rate.

Kosovo

The news of a peace deal in Kosovo did little to raise the euro's fortunes, although German Chancellor Gerhard Schröder expressed confidence that the possible end to the conflict "will also have positive effects on the currency".

Mr Blair told reporters that the euro's woes had not altered his aim of taking Britain into the single currency if the economic conditions are right.

He said: "Our position remains exactly the same and I don't think you can judge it on the basis of fluctuations of the euro from this month to that."