The British Chancellor, Mr Gordon Brown, last night told Mr Rupert Murdoch that Labour will not be bullied into softening its commitment to join the single European currency when the time is right - if the government decides it is in Britain's best economic interests.

"We are determined to see Britain fully integrated into a world economy based on free trade, open markets and greater competition. We have no intention of surrendering or subjugating the British national interest, our's is a mature patriotism," he explained.

But, the most sensitive passage was on Europe, where Britain does 50 per cent of its trade and where the euro bloc would account for 20 per cent of global trade, he pointedly reminded the media mogul. It could not afford to "stand on the sidelines".