Chancellor Gordon Brown turned-up Labour's pro-European rhetoric yesterday on the eve of his widely predicted "not yet" verdict on British membership of the euro, writes Frank Millar, London Editor.
In what is still being billed a historic statement to MPs this afternoon, Mr Brown will deliver his assessment of the famous five "economic tests" for membership of the single currency, following what he described as "the most rigorous and comprehensive assessment the Treasury has ever done on an economic issue".
On the BBC's Breakfast with Frost programme, Mr Brown insisted he "in principle" wanted to join, while adding: "In practical terms we have got to be sure all the conditions are in the right place and we don't make the same mistakes of the Exchange Rate Mechanism era."
He said he and the Prime Minister, Mr Tony Blair, had decided that, following today's statement, they should "put the pro-European case" and seek to unite the British people around "a pro-European consensus".
Attacking the Conservative Party's "anti-European prejudice", Mr Brown said it was "in the patriotic interest" for Britain to be part of Europe and that the idea of making the choice between Europe and America was "ridiculous".
But the Conservative leader Mr Iain Duncan Smith insisted the economic tests were "a smoke screen" while Labour sought "a moment when they can win the referendum" And even a shift from an "if" to a "when" stance on the euro option would do little to ease the disappointment of pro-Europeans in all three main parties that Britain should remain undecided after six years of Labour government.
Seemingly resigned to further delay the Liberal Democrat leader, Mr Charles Kennedy, said he would like to see a government Bill introduced paving the way for a referendum, with business consulted about the possibility of dual pricing in shops.
Mr Brown is expected to leave open the possibility of a referendum before the next election. But even before cabinet Europhiles had the opportunity to hail this important "concession" by the Treasury, the chancellor's former adviser, Mr Charlie Whelan, declared there was as much chance of that happening during the present parliament "as \\ Mandelson becoming prime minister".
Laying bare the ongoing tussle for supremacy on the issue between Mr Blair and Mr Brown, Mr Whelan confirmed the recent complaint by Mr Mandelson that the Chancellor had effectively "outmanoeuvred" the Prime Minister in retaining the Treasury's power of decision.
Writing in the News of the World, Mr Whelan said: "Gordon Brown knows that the decision on the euro is political, but he also believes it must be in Britain's economic interests. Of course in his statement he will leave open the possibility of a referendum in this parliament just as he did in his 1997 statement. But there is as much chance of that happening as Mandelson becoming prime minister. Gordon Brown believes our economy can perform better outside the euro for the foreseeable future."
Mr Whelan's remarks coincided with a survey for ITV's Jonathan Dimbleby programme suggesting that, while half of Labour's backbenchers want a referendum on British membership of the euro during this parliament, two-thirds believe it will not happen.
The latest ICM poll suggests 68 per cent of the British people would vote No in a euro referendum, with just 24 per cent saying Yes and 8 per cent undecided. With Mr Blair's reputation for "trust" under continuing pressure in the aftermath of the Iraq war, 71 per cent also believed the Prime Minister wanted to join the euro for political rather than his stated economic reasons.
