Blair

Blair ‘out-manoeuvred’ on euro says Mandelson

Blair ‘out-manoeuvred’ on euro says Mandelson

Peter Mandelson has claimed that Tony Blair has been ‘out-manoeuvred’ on the euro by the ‘obsessed’ Gordon Brown.

The former Cabinet Minister yesterday also warned that a failure to hold a referendum on the single currency would be ‘damaging’ for Mr Blair, whose popularity is suffering following the recent departure of Clare Short.

The Shadow Chancellor, Michael Howard seized on Mr Mandelson’s comments and claimed the outburst demonstrated: ‘how vicious and personal the infighting in Labour has become.’

However, Mr Brown has been at pains to emphasise the strength of his relationship with Mr Blair this week.

In an interview with the Times and while addressing a Confederation of British Industry (CBI) dinner last night, the Chancellor also attempted to present a pro-European stance.

Last week, Mr Blair and Mr Brown even went so far as to issue an unprecedented joint statement in an effort to convince the public that the Government remained united and down play reports of splits.

However, their efforts may have been undone by one of the Prime Minister’s closest allies.

Mr Mandelson’s controversial remarks were made off the record but were soon circulating around the corridors of Westminster. He said: ‘Gordon Brown is a politician right down to his fingertips, 24 hours a day, seven days a week.’

‘Tony Blair is not. If he was as obsessed with politics he would not have let himself be out-manoeuvred in the way that he potentially has.’

On the record he stated that failure to hold a referendum on the issue would undermine a key cornerstone of the New Labour project.

Mr Howard was keen to capitalise on the situation, he commented: ‘Britain’s national economic interest is coming a poor second to Labour’s bitter and personalised faction fighting.’

However, Ms Short – thought to be an ally of Mr Brown – sought to refocus the debate during an interview on BBC Radio Four’s ‘Today’ programme and maintained that future involvement in the euro would be determined by economic concerns.

She dismissed Mr Mandelson’s intervention as “obsessive mischief making”.

On June 9th the Chancellor is expected to announce whether Britain has passed five economic tests, defined by him for membership of the single currency – the general consensus is that he will conclude that Britain is not ready.

But, Mr Howard remains unconvinced. He said: ‘It is quite clear that the fudged decision Gordon Brown makes on June 9 is going to be dictated by Labour’s infighting, not what is best for Britain.’