Hain urges Britain to accept euro

Britain is certain to suffer if it does not join the single currency, Europe Minister Peter Hain said today.

Mr Hain's declaration that "of course" the country will lose out if it does not sign up to the euro puts him seriously at odds with Gordon Brown. The Chancellor has repeatedly said the decision depends on whether it is in the UK's economic interests to join, subject to the five economic tests he has set.

Mr Hain also urged shops to welcome the euro notes and coins, to be launched in 12 EU countries on 1 January, and to price their goods in both euros and sterling.

He dismissed many of the opponents of the project as "nutters", and a "rabble" led by Tory leader Iain Duncan Smith. However, Mr Hain denied that Tony Blair had already decided to call the referendum he has promised if the Government decides Britain ought to go in.