No10 rejects rumours of joining the euro

Published on Monday 1 December 2008 21:38

DOWNING Street yesterday played down suggestions that Britain was "closer than ever before" to scrapping the pound and replacing it with the euro.

The Prime Minister's spokesman made clear that there had been no change in government policy and that five economic tests had to be passed before the euro would be adopted in the UK.

Speculation was sparked after Jos Manuel Barroso, the president of the European Commission, said he had been told by "some British politicians" the UK would have been better off if it had adopted the euro.

Lord Mandelson, the pro-European Business Secretary, was rumoured at Westminster to have been the source.

Despite public opposition, it was a long-standing ambition of Tony Blair, in his decade as prime minister, to take Britain into the euro. But he was frustrated by Gordon Brown, when he was chancellor, who drew up five tests that had to be met before it could be considered.

Mr Brown's spokesman said: "Our decision on whether or not to join the euro will be based on an assessment of what is in the British economic interests."