Ministers are told to take pro-euro line

TONY BLAIR has ordered his ministers to adopt a more positive stance on the single currency as the Government prepares to issue a firm "declaration of intent" to join the euro.

A new briefing note for Labour figures appearing on television and radio programmes says that "Europe can only get more important for Britain" and that "a successful single currency would be beneficial to Britain" if the economic case for joining were clear.

The document, issued by Labour's Millbank headquarters, says the "top line answer" to questions about the party's policy on the single currency should be: "A strong euro, particularly accompanied by economic reform in Europe, will bring clear economic benefits to Europe. A successful euro will also benefit Britain."

In two weeks, the Government will step up another gear by publishing a National Changeover Plan outlining the steps Britain would need to take in order to join the euro.

It will say that the transitional period could be shorter than the three years it took other EU members who launched the currency last month, as Britain could learn lessons from their experiences.

The plan, to be unveiled by Gordon Brown, will be accompanied by a warm welcome from Mr Blair. They have been holding talks about the document and the statements they will both issue alongside it.

It is understood that the Prime Minister is keener than the Chancellor to adopt a more positive approach to the euro, in order to maximise Britain's influence in the EU while it remains outside the currency.

They are expected to reach a compromise under which the Government adopts "warmer words" without changing the policy announced by Mr Brown in October 1997.

This set out five economic tests that would have to be passed before Labour recommended membership and called a referendum, which was effectively ruled out until after the next General Election.

Under the compromise, Mr Blair could announce that Britain "intends to join" the euro once the tests are met, but would reject pressure from businessmen to set a target date for joining.

Mr Brown believes that a major departure from existing policy could unsettle the markets, and that naming a date at this stage would be too risky.

The Labour briefing document, passed to The Independent, has been welcomed by pro-EU ministers but has raised eyebrows among those who are sceptical about the single currency because it lists the advantages of the euro without mentioning any of the potential downsides.