The euro is foundering, Straw admits

The euro is in trouble, the Foreign Secretary admitted today.

Jack Straw fuelled fears over the currency's future by acknowledging that it is foundering.

Significantly, he failed to give a strong message about its prospects, saying only that he "thinks" it will survive. Politicians in Germany, Italy and France are questioning the merits of the single currency amid mounting concern over their economies.

This week, Italian labour minister Roberto Maroni called for a referendum on reintroducing the lira after complaints that the euro has fuelled inflation.

Mr Straw said today: "There obviously are some difficulties facing the euro. We are not members of the euro. The people in the eurozone area, or their governments, made their own judgments about joining the euro."

Speaking on Radio4's Today programme, Mr Straw suggested that the euro's problems were temporary. "Currencies of all kinds go through difficulties from time to time," he said.