Euro decision to be based on economic tests

Sunday, 18 May 2003 12:00 AM

Gordon Brown has insisted that any decision regarding Britain's entry into the single currency is to be solely based upon the five economic tests.

Speaking to the BBC's Breakfast with Frost, Brown said that: 'The five tests effectively define the national economic interest for our country. It is a guarantee that we can ensure jobs, investment and the future profitability of industry and the prosperity of the country.

'When I make the statement to Parliament on June 9, the focus will be on these five economic tests that define the economic interests of the country.'

He then insisted that the possibility of a referendum regarding the decision could still be held during the current Parliament.

'Nobody has ruled out a referendum as an act of dogma in this Parliament. Economics and not dogma will be the final test.'

Despite his insistence on the success of the five tests, he confirmed that the current Government were in favour of the single currency, saying that they had been 'committed' to it since 1997.

The subject of the interview then moved on to the rumoured rift between Brown and Blair. When asked about it, the Chancellor played down the rumours. Instead he insisted that they had a 'constructive' and 'tranquil' working relationship

Whilst Brown re-iterated his support for entry into the Euro, the Conservatives were again on the attack.

Defence spokesman Bernard Jenkin told GMTV's Sunday Programme that he was against joining the euro.

'As the argument about the five tests carries on, you are beginning to see that this is a very, very permanent shift in control from the democratic institutions of our own country to whatever it is that exists in Europe - certainly not democracy, more a bureaucracy.'

Also joining the debate was former European Commissioner and Conservative frontbencher Chris Patten. He told Radio Four that there is the need for a 'serious political debate' about Britain's relationship with the EU.

He said: 'Sooner or later we are going to have to end this nervous breakdown about our membership of the European Union if we are to punch our weight, if we are going to protect and enhance Britain's national interest.'

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