Brown puts pro-European case

Brown: Wants to join euro "in principle"

Britain should join the single currency if all the economic conditions are "in the right place", Chancellor Gordon Brown has said on the eve of his historic announcement on the euro.

Mr Brown said the decision had been made on the "most rigorous and comprehensive assessment that the Treasury has ever done on an economic issue".

After the statement in the House of Commons on Monday, the chancellor said he and the prime minister would be putting the "pro-European case".

It was time to "sweep aside the anti-European prejudice" that Tory leader Iain Duncan Smith was putting forward, stressing that making the choice between Europe and America was "ridiculous", said Mr Brown.

The chancellor is widely expected to say the time is not yet right for Britain to join the single currency.

In principle I want to join the single currency - in practical terms, we have got to be sure that all the conditions are in the right place

Gordon Brown

'The dangers of euro delay'

Cabinet ministers made their decision on Thursday after a special meeting lasting more than two-and-a-half hours.

The chancellor said a decision had been taken on the basis of the "national economic interest" - comments interpreted as confirmation he will say the conditions are not yet right for Britain to join.

Pro-Europe

Mr Brown will announce the Treasury's assessment of the government's five economic tests on Monday.

He told the BBC's Breakfast with Frost programme that Britain's financial services, jobs, housing and investment had been looked at during the considerations.

"Right at the centre of it is what is the national economic interest for the future and that is why the five tests are so important," he said.

"In principle I want to join the single currency - in practical terms, we have got to be sure that all the conditions are in the right place and we don't make the same mistakes of the Exchange Rate Mechanism era."

The UK's euro verdict

A need-to-know guide

At-a-glance

Mr Brown said the detailed work by the Treasury "shows many of the benefits of the single currency".

All the relevant documents, including the 1,800 pages of the Treasury's 18 background studies and a 250-page final assessment, would be published on Monday so voters could look at the background to the government's decision.

Mr Brown said it was now in the "patriotic interests for Britain to be part of Europe" and "time to put the pro-European case".

"Tony Blair and I have decided, and the cabinet agreed on Thursday, that after the statement tomorrow, we should put the pro-European case.

"We have got to sweep aside the anti-European prejudice that Iain Duncan Smith is putting forward.

"The idea that we have got to choose between Europe and America is quite ridiculous."

'Smoke screen'

But Mr Duncan Smith denied his party was talking about leaving Europe, insisting that it wanted to develop more flexibility in Europe.

He accused Mr Brown and Mr Blair of being "busy talking about something and obsessed about something the British people do not want".

The UK's five tests

Convergence with eurozone

Enough flexibility to adapt

Impact on jobs

Impact on financial services

Impact on foreign investment

He told Frost the euro decision was "a political judgement", with the five tests "really a smoke screen".

"They are playing games - all they are really trying to do is find a moment when they can win the referendum and then they will enter.

"The worst thing they can do right now is postpone the decision just for a year or so - British business needs stability."

Liberal Democrat leader Charles Kennedy said he would like to see a bill paving the way to a referendum on the euro, with business consulted about the possibility of dual pricing in shops.

David Frost, director general of the British Chambers of Commerce, said: "We agree with the anticipated response from the chancellor to the five economic tests of 'not no, but not now'.

"However, the government must make it clear where it intends to go from here so that business knows where it stands for investment and planning decisions."

Euro decision is a 'political judgement'

George Eustice, campaign director of the anti-euro No Campaign, said the past four years had proved "we do not need to join the euro in order to be successful in Europe".

"Britain has been far more successful and influential by keeping control of its economy," he said.

If, as expected, Mr Brown rules out a referendum on the currency this year, the big question would be whether he would leave open the possibility of a poll before the next general election.

Mr Brown is said to favour putting off a poll until after the election, while Mr Blair is said to be ready to put off the general election until 2006 to allow for the euro vote.