Foreign holidays fail to give euro boost

Pro-euro campaigners were hit by a fresh blow today when a survey showed public opposition to the new currency remained firm during the summer holiday season.

Cheerleaders for the currency - including government ministers - had insisted voters would feel more sympathy for the euro after coming into direct contact with notes and coins while abroad. But the August survey by Barclays Capital shows opposition has remained strong, with one of the biggest margins against joining recorded since the monthly polls began last year.

Barclays found 49 per cent of respondents would vote against signing up to the euro in a referendum, compared with 36 per cent in favour - even if the Government said the five crucial economic tests had been met.

The result showed the proportion of those backing the currency falling by one per cent from last month despite the "holiday effect". A Barclays Capital spokesman said: "Familiarity with euro notes and coins has not had a positive impact on sentiment towards the single currency. Indeed, the reverse appears to be true."

Anti euro-campaigners hailed the results of the poll and claimed there was in fact a "reverse holiday effect" - travellers' dislike of the euro hardened when they visited countries where price rises had been masked by the transfer to the new currency.

The poll is more bad news for Tony Blair and pro-euro supporters in the Cabinet, who yesterday learned they could use valuable union support. Derek Simpson, the new Left-of-centre leader of the Amicus manufacturing union, has vowed to launch an audit into how much cash his organisation donates to Britain in Europe, the leading pro-euro campaigning group.

He is ready to poll his 750,000 members on whether they want a change of stance for the union, whose strong calls for Britain to join the currency have been a great help to the Prime Minister.

Last October, Europe minister Peter Hain said that when British travellers saw and felt the euro it would soften opposition to it.