The British government is "on track" to complete the assessment of the five tests on euro entry by June, Chancellor of the Exchequer Mr Gordon Brown said yesterday.

Mr Brown told the Treasury select committee that the "rigorous and comprehensive" euro assessment would be made at the "appropriate time", but that 18 preliminary studies that formed part of it were under way.

"It would be a mistake to believe that either for reasons of market sensitivity or for reasons of completeness that we would be adding to the debate by publishing these individual studies in advance of the assessment," he said.

Mr Brown claimed the five tests would give a "clear and unambiguous" answer on whether it was in the UK's economic interest to join the euro - and that Prime Minister Mr Tony Blair agreed with him that the tests would be decisive. He accepted that the cabinet could theoretically overrule the recommendation.

"The assessment carried out by the Treasury will be decisive," Mr Brown said. "In the end it is the people who will make the decision."

A "yes" result from the tests would lead to a referendum, Mr Brown said. In the event of a "no", however, the government would announce how it planned to proceed "at the time at which we make the announcement".

Mr Brown said the UK was "committed in principle" to joining the euro, but would not want to join an unsuccessful single currency.

"The five economic tests are looking at whether, for example, business cycle and economic structure are compatible so we can live comfortably within the euro, setting interest rates on a permanent basis," he said.

He would not comment on what the entry exchange rate of sterling into the euro might be and added that the government had "no intention" of rejoining the ERM prior to any euro entry.

Mr Brown also suggested that he would oppose a centralisation of fiscal policy within the EU.

Ms Rachel Lomax will become the first female deputy governor of the Bank of England when she replaces Mr Mervyn King, who becomes governor in July, the Treasury announced yesterday. Former Financial Times editor Mr Richard Lambert will join the bank's monetary policy committee.

Ms Lomax, a career civil servant, is currently permanent secretary at the Department for Transport. She has also worked at the World Bank and held a series of positions in the Treasury.

Mr Brown said he was pleased with her appointment.

- (Financial Times Service)