Pound again under threat, Barroso hints

Eurozone offers refuge for Brits?

Monday, 01, Dec 2008 12:00

European Commission president Jose Manuel Barroso has said he believes the "people who matter" in Britain are considering a renewed drive to join the euro.

His comments have sparked speculation that senior politicians including prime minister Gordon Brown may now be mulling the option over.

"I'm not going to break the confidentiality of certain conversations, but some British politicians have already told me: 'If we had the euro, we would have been better off'," the AFP news agency quoted Mr Barroso as saying on French radio.

"The British have an enormous quality, one of many, that is they are pragmatic," he added. "This crisis has emphasised the importance of the euro, in Britain as well."

Sterling has suffered in recent months because of the credit crunch. Many analysts believe its declining fortunes could reinvigorate the dormant argument over whether Britain should join the eurozone.

Downing Street has refused to comment on the issue. It maintains the five economic tests outlined when Mr Brown was in No 11 still stand – that a referendum will only be held when five economic tests are met.

These include the euro's impact on foreign investment, jobs and financial services, in addition to flexibility and convergence criteria.

Opinion polls have in the past suggested Britons remain opposed to abandoning sterling, as Mr Barroso freely admitted.

He added: "I don't mean this will happen tomorrow, I know that the majority are still opposed, but there is a period of consideration underway and the people who matter in Britain are currently thinking about it."