Brown 'suppressing' euro debate

Mr Portillo and William Hague campaign for the pound

Political debate on the euro is being suppressed by the government, according to shadow chancellor Michael Portillo.

In a speech on Wednesday he accused supporters of the single currency of "a concerted attempt" to scare the British people into embracing it.

Portillo's arguments

The euro is unstable

A European interest rate would be wrong for the UK

Consumers can still make price comparisons

Currency exchange costs are falling

The City of London is thriving

Inward investment is still strong

Mr Portillo told the anti-euro Business for Sterling group that ministers are trying to suppress debate on the issue.

He said: "By attempting to suppress debate on the euro, [Chancellor] Gordon Brown is attempting the impossible.

"The genie is out of the bottle and people are hungry for facts and debate.

"We will meet that need and will carry our case to the country. The government can no longer duck the debate and avoid the arguments."

The genie is out of the bottle and people are hungry for facts and debate

Michael Portillo

Prime Minister Tony Blair says that while in principle euro membership is the way ahead for Britain, in practice the economic conditions have to be right.

But polls suggest most people in the UK are against signing up, and the shadow cabinet says it would keep the pound for the lifetime of the next parliament at least.

'Britain doing well'

In his speech, the shadow chancellor argued membership of the single currency is unnecessary on economic grounds.

London's financial centre had done well outside the euro, while the euro had not been a stable currency, he said.

If these are the best arguments the anti-Europeans can muster, they should go back to the classroom

Britain in Europe's Simon Buckby

Lower interest rates could be achieved without joining, and inward investment in Britain has continued while it has stayed out of the euro.

He went on: "Advocates of the euro claim that a single currency would make prices transparent, and make comparisons easier.

"In practice, consumers translate between currencies well enough."

'Clutching at straws'

But Simon Buckby, Campaign Director of Britain in Europe, dismissed Mr Portillo's arguments.

He said: "Michael Portillo is clutching at straws. He is ignoring the evidence that Britain is losing out because we are outside the single currency and believing his own propaganda.

"If these are the best arguments the anti-Europeans can muster, they should go back to the classroom."