Brown: No fudge on euro

Gordon Brown says the key tests must be met

Chancellor Gordon Brown has insisted the government will not "fudge" the tests for joining the euro in order to force the UK to sign up quickly.

The policy that the five economic tests must be met ... has not changed and will not change

Gordon Brown

And he warned cabinet colleagues pressing to step up the pace of campaigning for the euro that there would be no change to government policy.

The chancellor used his annual Mansion House speech to the City of London to insist the government's policy on the euro has not changed.

But earlier, attention was drawn to possible splits in the cabinet on the issue when Foreign Secretary Robin Cook dropped pro-euro comments from a speech he was giving.

'No hidden agenda'

Mr Brown told his audience he would not use the tests as a tactical device to disguise a "hidden agenda" for political reasons.

He said a "short-termist" approach to the single currency would risk the economic stability which had been achieved as a result of the policies put in place by the government since it came to power in 1997.

Mr Brown's comments were believed to be aimed at ministers such as Mr Cook, Northern Ireland Secretary Peter Mandelson and Trade and Industry Secretary Stephen Byers, who are said to be pushing for a high-profile pro-euro campaign.

Rift speculation

Earlier, speculation resurged about a rift within the cabinet, when Mr Cook dropped his pro-euro comments.

The tests for joining the euro

sustainable convergence between Britain and the euro economies

sufficient flexibility to cope with economic change

the effect on investment

the impact on the financial services industry

whether it is good for employment

Downing Street denied the Treasury had intervened to oblige Mr Cook to omit the controversial passages.

A draft of Mr Cook's speech had been issued in advance. He had planned to say:

that if the economic conditions were met, it would be "right in principle for Britain to join and wrong in principle to rule it out. This government will not let Britain lose out by staying out."

it was "not difficult to identify why there would be benefits for Britain in joining a single currency".

that Britain would only be ready if "we now resolve in principle that we want to be a member".

if Denmark and Sweden join, Britain "could be the only member state outside the eurozone".

Downing Street said the Foreign Secretary had been interrupted by Conservative MPs.

"What he said, or didn't say, doesn't depart in any way from the policy," a spokesman said.

Mr Brown told his audience: "Some opponents allege that we intend to fudge the tests, that our intention is to join as quickly as we can get away with, irrespective of whether there is the sustainable convergence we need, and thus the tests are merely a political and tactical device to disguise what is a hidden agenda.

"I reject this view. As the prime minister has said, the tests must be met.

"We cannot pre-judge the five economic tests. To do so before we have secured sustainable convergence would risk repeating past failures..."

Referendum

The government's policy is that if and when the UK economy met the five tests, a referendum would be held on joining the single currency.

Mr Brown said: "The government will not agree to a short-termist approach that would put at risk economic stability or the discipline that has created sustained growth, rising investment and over 900,000 jobs since 1997.

"So the policy that the five economic tests must be met, and that the people would have the final say, the policy set out in October 1997, repeated by the prime minister in February 1999, has not changed and will not change."