Blair talks up euro

Tony Blair says he believes he could win a referendum on Britain joining the euro if the arguments were well mounted - in spite of opinion polls suggesting he would lose.

And he told the Financial Times he would be closely involved in deciding if the five economic conditions set by the Labour government had been met.

I think it's clearer than ever that he wants to join the euro, that he wants to ditch the pound

William Hague on Tony Blair

The comments have set the tone for Friday's campaigning, with Conservative leader William Hague saying it was now clearer than ever that under Labour "the pound is doomed".

Liberal Democrat Charles Kennedy said he hoped Mr Blair's comments on Europe were significant.

But he cautioned that the prime minister and Chancellor Gordon Brown had been playing "hard cop, soft cop" on the issue for years.

Later, at Labour's morning news conference, Mr Brown appeared to back the prime minister's view on the government's chances in a euro referendum, though he insisted policy had not changed.

"We have always said that if the five economic tests were met and a recommendation was made by the cabinet and parliament, we believe the people would support it, but in the end it is up to the people," he said.

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"I believe if we were convinced as a government, we could win the support of the British people."

And Mr Brown restated Labour's position that, if it wins the next election, an assessment on whether to recommend joining the single currency would be made early in the next parliament.

Mr Hague, at his party's morning news conference, said Mr Blair would throw the whole weight of government behind a 'yes' vote in a referendum.

He would choose the question, the timing, and had already "rigged the rules".

"That is why I say the key vote, the actual referendum on the pound, is this general election a week on Thursday.

Charles Kennedy: Cautious over Mr Blair's remarks

"If the Conservatives win the election we will keep the pound.

"If the Labour Party win the election the pound is doomed, and I think that's clearer than ever from the interview the prime minister gave this morning."

Mr Kennedy said Mr Blair's interview had to be viewed alongside comments made by Mr Brown to the CBI earlier this week.

"This game of hard cop, soft cop, has been going on this issue for the last four years."

Britain's interests

The prime minister tells Friday's Financial Times the decision on whether Britain had met the government's five economic tests to join the euro would be made "very carefully" by him and Chancellor Gordon Brown.

Asked if he believes Labour would win a referendum on joining the euro, he replies: "Of course - provided you mount the argument well, provided we are setting out why it is economically and politically in Britain's interest."

And he says he does intend to serve as prime minister for the whole of the next parliament if elected.

The comment appears to scotch reports of a deal that would see Mr Blair step down midway through his next term in favour of Mr Brown.

The continuing debate on the euro comes as the United Kingdom Independence Party holds a rally at Westminster, which astronomer Sir Patrick Moore is expected to attend.

There is speculation that Teresa Gorman, who is standing down as a Tory MP, could lend her support to UKIP.