The British government was accused of sending out conflicting messages about the euro after Mr Jack Straw, the Foreign Secretary, yesterday insisted British membership was not inevitable.
Mr Peter Hain, a Foreign Office minister, expressed doubts on Tuesday that Britain could survive "as a kind of parallel currency economy".
But Mr Straw, asked if he thought euro membership was inevitable for Britain, told the BBC: "No I do not." He also insisted that Prime Minister Blair and Chancellor Gordon Browwere not split on the merits of euro membership.
Opposition parties said the British government's euro policy had fallen into confusion.
Michael Howard, finance spokesman for the Conservative party, said: "Peter Hain said he doubted in the end it is possible to run a parallel currency economy. Jack Straw has disowned him."
Matthew Taylor, for the Liberal Democrats, said it was time for the British government to show a lead on the euro. "The longer the Prime Minister allows his ministers to promote conflicting messages on the euro, the more his authority will be undermined."
However, Toyota yesterday welcomed the British government's recent efforts to make the case for euro membership.
Bryan Jackson, senior director of Toyota Motor Manufacturing (UK), said he was encouraged by Mr Hain's comments because they would assist a public debate on the euro.
But he complained about the strength of sterling and warned that Britain must join the euro at an acceptable exchange rate. "To go in at the moment would be very damaging for British manufacturers. Because of the exchange-rate problem it is very difficult for us to make money."
Meanwhile, Britain's leading employers' lobby, the Confederation of British Industry, was under pressure not to campaign for UK membership of the euro.
The No campaign against the euro is to lobby CBI members soon in an attempt to stop a pro-single currency campaign by the business organisation. - (Financial Times service)