Blair’s ‘strong-lead’ on euro welcomed

Supporters in Britain of the euro today hailed Prime Minister Mr Tony Blair for offering a "strong lead" in one of the most pro…

Supporters in Britain of the euro today hailed Prime Minister Mr Tony Blair for offering a "strong lead" in one of the most pro-European speeches of his career.

Mr Blair stopped short of advocating British entry into the euro, but the overwhelmingly positive tone of his speech was seen by observers as evidence of a determination to press ahead with a referendum in the current Parliament. Britain had been damaged over the last 50 years by a "history of missed opportunities" in Europe, Mr Blair told the European Research Institute in Birmingham. It was now time for the nation to "adjust to the facts" and accept that its future lay in Europe, Mr Blair said. He mounted a scathing attack on the "embarrassingly long history" of British politicians who he said had let down the national interest by failing to get involved in the development of Europe. At key moments, from the creation of the European Coal and Steel Community in the 1950s to the establishment of the Exchange Rate Mechanism and the Maastricht Treaty, Britain had chosen to stand aside or join late, he said. "We said that it wouldn't happen. Then we said it wouldn't work. Then we said we didn't need it. But it did happen. And Britain was left behind," he said. "If this dismal history teaches us one clear lesson, it is this: the EU has succeeded and will succeed." He dismissed fears that Britain would lose sovereignty by becoming more closely involved with Europe, arguing the events of September 11th had shown how nations could become stronger by acting together. "I see sovereignty not merely as the ability of a single country to say no, but as the power to maximise our national strength and capacity in business, trade and foreign policy, defence and the fight against crime," he said. Welcoming the Prime Minister’s euro message, the TUC General Secretary Mr John Monks said: "At the end of a week in which many have sought to divide ministers on this crucial question, the Government has emerged more united and more supportive." Lord Marshall, chairman of pro-euro pressure group Britain in Europe, said: "I hope the strong lead that he is giving means that we will not make the same case with the euro." But europhile Tory MP Mr Ian Taylor, chairman of the European Movement, was disappointed that Mr Blair had not explicitly stated his intention to join. "The Prime Minister was absolutely right in everything he said about how Britain has lost influence by joining European developments late in the past," he said. "But why on earth did he stop short from drawing the obvious conclusion that it is not in Britain's national interest to stay out of the euro?" In his only direct reference to the single currency, Mr Blair stuck to the Government's line that the five economic tests set by Chancellor Mr Gordon Brown must be met before a decision is made on whether to call a referendum. Downing Street insisted the speech did not represent a shift in Government policy on the euro. Number 10 dismissed as "totally erroneous" press reports that Mr Blair had decided to hold a euro referendum in 2005, to coincide with the next general election. Conservative Party chairman Mr David Davis said Mr Blair was wrong to focus on the issue of Europe at this time. Speaking on BBC Radio 4's

World at One

, he asked: "Why is he going for this distraction at this point in time? He has got the unavoidable distraction of the international situation and he has got desperate problems at home with public services, schools, hospitals, policing." And Labour eurosceptic Mr Ian Davidson, a member of the No campaign against the single currency, said: "Locking into the euro would lead to a loss of economic control and take us back to boom and bust, which we have worked so hard to overcome."

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