London - Downing Street has denied that the Northern Secretary, Mr Peter Mandelson, sparked a Cabinet rift by warning industry would face problems while Britain stayed out of the single currency.
Addressing a GMB union conference in Belfast, the Northern Ireland Secretary said he accepted that the pound was overvalued and the euro was undervalued.
His message was seen as evidence that he was seeking to pressure the Prime Minister, Mr Tony Blair, into making a stronger commitment to the euro.
However, a spokeswoman for No 10 insisted policy had not changed. "Talk of a Cabinet rift is completely false" she said.