At the Confederation of British Industry annual conference, Tony Blair has spoken about the need to win the battle against international terrorism in order to restore vital confidence in the UK economy.

Addressing business leaders at the CBI annual conference, on Monday, November 5, the Prime Minister’s keynote speech stressed the need for the restoration of stability in international relations as vital “for economic confidence and prosperity”.

Mr Blair said: "The effect of the 11 September attacks on world economic confidence, not to say on airlines and tourist and other related industries, is there for all to see.

"We know that these people would commit further atrocities if they could, so winning the battle against international terrorism is to win for the economy too. Jobs, living standards, business and trade need us to defeat this terrorist menace."

The Prime Minister also commented on the government’s stance towards the euro, in a statement seen as a damage limitation exercise in the wake of Chancellor Gordon Brown’s recent comments. Speaking on Sunday, Mr Brown had dismissed speculation about the possible introduction of the Euro by insisting that the UK would accept the currency only after a process of stringent tests to prove its suitability. However, the Chancellor’s remarks are in contrast to the Prime Minister’s recent urging that the party should "have the courage of our arguments" with respect to the holding of a referendum on the matter.

However, on Monday, The Prime Minister moved to assure that the government’s approach to the euro had “not altered one iota”. Mr Blair stated that he had confidence in Britain’s ability to hold tight through the potential economic downturns ahead, and that labour had its eyes upon a long-term gameplan, rather than on short-term tax cuts.

The speech sees the start of another hectic week for Tony Blair, who will now fly to Washington to hold talks with President Bush before meeting with the President of Pakistan, General Pervez Musharraf, in London on Thursday. He will then be joined by Spanish Prime Minister Jose Maria Aznar on Friday for another round of diplomatic discussions. (CL)