No short cuts to the euro

THE pound held steady against the euro today despite Gordon Brown stressing in his Mansion House speech that Britain would not be steamrollered into joining the single currency.

The Chancellor insisted that the five economic tests would be rigorously and robustly applied before the decision on British entry to the euro would be put to a referendum. At least 10 comprehensive studies would be carried out to ensure the tests were met.

However, while in Westminster circles the speech was seen as putting further distance between the Chancellor and the Prime Minister, the City took a more cynical stance.

'It reinforces the view that Brown will not take any short cuts to the referendum, but it's nothing we didn't really know already,' said Commerzbank analyst Kamal Sharma.

Sterling barely moved against the euro at 64.57p, weakening by just under a tenth of a penny.