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Blair destroy euro support { May 10 2003 }

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   http://www.guardian.co.uk/euro/story/0,11306,953094,00.html

http://www.guardian.co.uk/euro/story/0,11306,953094,00.html

Blair could destroy euro support

Britain in Europe campaign director warns of mass resignations if the PM offers nothing but 'warm words' in his forthcoming statement

Patrick Wintour and Sarah Hall
Saturday May 10, 2003
The Guardian

The pro-euro campaign will suffer mass resignations and speedy collapse if Tony Blair only offers "warm words" about Britain joining the euro in the government's imminent statement, the Britain in Europe campaign director, Simon Buckby, warned last night.
Mr Blair and the chancellor, Gordon Brown, are finalising their statement on British membership of the euro in the light of the Treasury's assessment of the five tests. The assessment will state that the British economy has not yet unambiguously converged with Europe.

The cross-party Britain in Europe campaign has been fighting a rearguard action to ensure Mr Blair keeps open the option of a referendum in this parliament.

In his strongest warning yet of the issues at stake, Mr Buckby said the organisation would suffer mass resignations if the government statement did not set out a clear road map to membership of the euro.

Mr Buckby would also feel forced to quit. He said: "How could I motivate my staff, invigorate senior businessmen, trade unionists and voluntary organisations without a believable route map to joining the euro soon?"

The disintegration of Britain in Europe, set up in December 1999, would be embarrassing for Mr Blair who has repeatedly promised that Britain's destiny is to join the euro.

Mr Buckby said: "Business wants to know it is the government's intention, not just their hope, that we will join the euro in this parliament. There can be no more wait and see - there has to be a game plan, with a transparent political strategy, to secure membership."

He also warned the prime minister's credibility was on the line with many businessmen and politicians. "There are many business people who made investment decisions on the basis of assurances about the euro that they believe they were given by the prime minister. If the prime minister lets these people down now, he will lose a lot of political credibility. And to avoid a flight of investors abroad, there has to be a series of measurable steps the government will take to join the euro. We cannot rely on private assurances.

"If the political direction is not clear, the prime minister will be seen by his European colleagues as another John Major or Harold Wilson, weak and dithering and as a consequence Britain will be pushed to the margins.

"After 50 years of vacillation, Tony Blair has got an historic opportunity."

Some pro-European ministers have privately acknowledged that a referendum cannot be won in the next 18 months, making it necessary to defer a referendum until after the general election. The Europe minister, Denis MacShane, made that suggestion in an interview in the Italian newspaper, Corriere della Serra.

But pro-Europeans are privately claiming growing confidence that Mr Blair will commit himself to addressing the issue again in this parliament, even though such confidence has not been reflected in the briefings emerging from the Treasury over the past month.

Euro-enthusiast MPs even believe the chancellor's statement - which they expect to be delivered in the week before MPs' Whitsun recess - will pave the way for a referendum to be held next year.

One Labour MP who has held discussions with the prime minister and the 11 cabinet ministers he counts as in favour of a referendum, says he is convinced the statement will be far more positive than media reports have suggested, and will rule that four of the five economic tests have been met, with only the issue of flexibility still a problem.

The backbencher said: "Unless I've been misled, or have been naive, the papers will have got it totally wrong if they run stories insisting a referendum's being completely ruled out. A deal is being hammered out at the moment, and is likely to rule out a referendum this year - but not next year."

The MP said Mr Blair and Mr Brown were locked in discussions "every minute of every day", and that, once the statement had been drafted "every line will be fought over".




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