Blair fighting for the euro

TONY BLAIR will throw the campaign for early entry to the euro into top gear today with a warning that he will not let Britain be left behind ever again in Europe. The Prime Minister will come out fighting after months of criticism from pro-euro campaigners for failing to give a clear lead.

In a landmark speech, he will deliver an appeal not to repeat the 'tragedy' of missed opportunities which he believes has cost the country dear in its relationship with Europe.

Blair wants to call a referendum on the single currency in 18 months and today starts the crucial task of preparing a sceptical public for the event. In his speech to the European Research Institute in Birmingham, he will say that the events of 11 September showed that it is more important than ever for Britain to work with others.

His clarion call comes 24 hours after his Eurosceptic Chancellor Gordon Brown backed away from his latest confrontation with the Premier, declaring in a newspaper interview that Blair was his 'best friend in politics'. Brown wants to delay any referendum on the single currency until the next Parliament.

But the Prime Minister's spokesman Alastair Campbell warned on Thursday night that the decision was not the Chancellor's but would be taken by the Cabinet 'as a whole'.

In his speech, Blair will insist again that the policy of ensuring that five economic tests are met before recommending membership in a referendum remains unchanged. But he will give his strongest signal yet that joining the single currency would be in the UK's best interests - and that failing to join would be a disaster. 'The tragedy for British politics and for Britain is that too many politicians have consistently failed...to appreciate the reality of European integration and in so doing they have failed Britain's interests,' Blair will say.

The Prime Minister will run through the history of Britain's post-war policy towards Europe, describing it as a history of opportunities missed. The greatest missed opportunity was not joining the Common Market at the first opportunity in 1957 but 16 years later 'when the rules had been worked out' without our input.

Brown's declaration that the Premier was his 'best friend in politics' brought a cool reaction from Downing Street. The Chancellor's highly unusual decision to go public and claim he was not at war with the Premier and his Cabinet colleagues astonished MPs.

A clearly embarrassed Downing Street called the interview a 'pleasant read'. But when asked who Blair was closest to, the spokesman did not go quite as far as Brown, saying: 'The Prime Minister has many best friends in politics but obviously the Chancellor is someone he has worked very, very closely with.'

Brown chose to bare his soul after a turbulent few weeks at Westminster. Rumours have been rife that the Chancellor has been in dispute with colleagues on several fronts. Enemies accuse him of being angry after Blair refused to name a date when he would step down as Prime Minister.