Swedes say no to euro

Tony Blair's bid to take Britain into the euro faced fresh trouble today after a decisive No vote in the Swedish referendum.

Supporters of the single currency admitted the result was a setback to the campaign in the UK while the Tories said it proved voters were ready to resist lobbying from business and politicians.

European Commission President Romano Prodi conceded Sweden had voted against the whole process of European Union integration. Fifty-six per cent of Swedes voted to keep the kroner with only 42 per cent voting for the euro.

Campaigning was overshadowed by the murder of foreign minister Anna Lindh, leader of the Yes campaign, but a predicted sympathy vote failed to materialise.

Commons Leader Peter Hain today insisted the result would not affect the timing of a British referendum, which would be determinedby our economic interests. Chris Bryant MP, chairman of the Labour Movement for Europe, said: "I would have preferred it if Sweden had voted Yes, but we have a very different economy."

Shadow foreign secretary Michael Ancram said: "It is clear being out of the euro will not leave Britain isolated in Europe."

Britain, Sweden and Denmark are the only three of 15 EU member not to have adopted the euro.