UK Chancellor dismisses speculation of “early entry” into eurozone

Chancellor Gordon Brown has dismissed speculation about the possible introduction of the Euro by insisting that the UK would accept the currency only after a process of stringent tests to prove its suitability.

In an announcement seen as a rebuff to recent comments made by Prime Minister Tony Blair, Mr Brown stressed that the government’s approach to the Euro would be “considered and cautious” and that any assessment would vigorously examine whether the move to embrace it would be in the UK’s national economic interest.

The Chancellor’s remarks are in contrast to the Prime Minister’s recent urging that the party should "have the courage of our arguments" with respect to the holding of a referendum on the matter.

Mr Brown went on to state that Treasury officials have started preliminary work on ascertaining the benefits of entry into the eurozone. and highlighted the government’s commitment to informing the business community, having already spent £23 million in preparation for the event.

However, responding to the announcement, Shadow Chancellor Michael Howard claimed that Mr Brown's comments were part of a "hard cop, soft cop" strategy regarding the euro, designed to disguise the government’s softening stance on the issue and an attempt to fool "some of the more gullible members of our community". (CL)