Straw bid to calm euro debate

Jack Straw today urged pro and anti-euro campaigners to "calm down", as both sides put pressure on ministers for a quick referendum on whether Britain should ditch the pound for the new currency.

The Foreign Secretary appealed for "sensible" views to prevail and claimed the Government's much criticised "wait and see" policy on the euro was "sound".

He also denied claims of highlevel Cabinet splits on the matter - but issued an apparent put-down to his number two, Europe Minister Peter Hain, who yesterday suggested British membership was inevitable. Asked by the BBC today whether he agreed that was the case, Mr Straw replied: "No I don't."

He also sounded a more eurosceptic tone by stressing that the first and most important of Chancellor Gordon Brown's five tests for membership was whether Britain's economy was properly in line with countries inside the euro-zone. Most independent forecasters claim clear differences remain between the business cycles of the UK and those of the 12 euro members.

Mr Straw said: "I would just ask people to calm down. Of course there aren't splits. Each of us explains the decision in different ways."

Prime Minister Tony Blair, meanwhile, was accused of putting jobs at risk by failing to launch a debate on the issue and doing nothing to end the uncertainty gripping business.

Mr Brown has until June next year to complete an assessment of the economic tests, although there are clear signs he will not allow himself to be boxed in and will announce his findings earlier.

Sir Ken Jackson, the pro-euro leader of the Amicus engineering union, claimed uncertainty was crippling British industry. He told Radio 4's Today programme: "People are not making long-term plans. Investment is falling in Britain. France has overtaken us as the leading investment area for Europe and, of course, we are suffering from that.

"What we believe is that the debate needs to be opened up, that we need to get this out of the way."

Euro-sceptic and former welfare minister Frank Field claimed the Government was dithering over calling a popular vote because if it lost, its economic policy would be derailed and it would face defeat at the next general election. This has led to up to 11 false starts from campaigners in favour of joining the single currency, Mr Field said.

"I don't know how many times... you have been briefed that this is the real beginning of the campaign to take us into Europe," he said. "The troops have been marched up to the top of the hill, and then marched down the hill again pretty promptly when it looks as though the beginning of the campaign has not kick-started public opinion."