Hain under fire over euro

Europe Minister Peter Hain was under fire today after he suggested Tony Blair could make a dash for the euro as early as spring next year.

Mr Hain angered the Tories and roused the suspicions of the Treasury when he said it would be "a tragedy" if Britain was excluded from the single currency forever, regardless of the national interest.

And he also spelled out a swift timetable which could, he said, see the Government swinging behind the euro as early as autumn and a referendum next spring with the euro in use less than two years later. Mr Hain has come into conflict with the Treasury in the past for taking a pro-Europe line.

The irritation of the allies of Gordon Brown has been sharpened by suspicions he was speaking out with a licence and possibly active encouragement from No 10.

Mr Hain's comments, in an interview with French newspaper Le Figaro, were seen by some as the latest attempt to bounce the Chancellor into a more positive approach.

In a ringing declaration in favour of the single currency, Mr Hain tells the newspaper the introduction of the euro across 12 nations was "a fantastic accomplishment". He says that, though Mr Brown has set a deadline of June 2003, he believes the decision on the five economic tests, which will determine whether joining is in Britain's interest, could come this autumn.

After that, Mr Hain goes on, it would take about four months for Parliament to put the procedure for the promised referendum in place.

Mr Hain brands those against joining as the "enemies of Europe" but Mr Brown last month criticised the way Germany's ability to run its own economy was being squeezed by its euro membership.