Blair signals euro delay for years

TONY BLAIR today sent out his strongest signal yet that the Government will reject plans to join the euro before the next General Election - but will publish a 'road map' setting out the path to future membership.

The Prime Minister used his monthly news conference at Downing Street to stress that the decision on the euro on 9 June would be based on Britain's 'economic interests'.

With Chancellor Gordon Brown's five economic tests almost certain to be failed, any such decision would appear to rule out joining the euro for two or three years.

At the same time the Prime Minister revealed that there were 'changes we may have to make as a country' if Britain wanted to get its economy in line with those of eurozone nations.

The road map would provide a blueprint for possible entry after the next General Election, which is expected in 2005. The plan would leave Blair and Brown open to charges that they are ready to manipulate Britain's economy for political reasons - but would delight pro-euro Labour MPs.

The Prime Minister said today: 'The Cabinet has made clear its support for the principle of joining the single currency. That decision must be based on the rigorous assessment of our long-term economic interests. That is the point the Chancellor has been making and I totally agree with it.'

The Prime Minister also repeated his determination to rule out a referendum on the EU's controversial plans for a new constitution. 'It simply is nonsense to suggest that this fundamentally alters the nature of Britain as a nation state,' he said.

Blair also demolished claims that he has a secret deal with Gordon Brown over who should inherit No10. The latest tale suggested that Blair had agreed to stand down in return for the Chancellor opening the door to a referendum on the euro.

Asked whether any deal had been done, Blair replied simply and bluntly: 'The answer's no.' The categorical denial appeared to leave no escape route. But it also dashed the hopes of the Chancellor's allies, if not of Brown himself, that Blair might have been paving the way for an eventual handover.

Rumours of a deal have been rife ever since Blair took Labour's leadership in 1994. Brown was said to have agreed to stand aside on condition that he would be the heir.

That story, however, has also been categorically denied by Blair. Despite that, the tales have refused to die down, not least because Brown's backers continued to fan them.

Some of the Chancellor's allies fear that Blair intends to soldier on for so long that, by the time he steps down, the Party will look to a new generation for its leader. But others believe Blair will go at a time of his choosing after the next General Election, possibly to become President of Europe.