03/01/2002

Mandelson asks minister to back euro

Former Northern Ireland Secretary of State Peter Mandelson has urged ministers to back the euro, after the smooth launch of the single currency on Monday.

Writing in the Financial Times, Mr Mandelson also predicted that Prime Minister Tony Blair would call a referendum on British entry before the next election and that those against the idea, such as Chancellor Gordon Brown, would be unable to stop the prime minister if the circumstances were right.

While the pound suffered a record one-day fall against the euro on Wednesday,

Mr Mandelson warned ministers against premature campaigning for British entry but called on them to speak out on the issue.

However, Foreign Secretary Jack Straw has been attempting to damp down speculation about a referendum while Tony Blair has also faced claims his authority was being undermined through the conflicting signals sent out by ministers. (MB)

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