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21/05/2003
Single currency issue threatens Labour unity
Europe and the single currency is threatening to do for the Labour leadership what it did for their Tory predecessors – more so after Peter Mandelson reportedly claimed that Gordon Brown had "outmanoeuvred" the Prime Minister over the euro.
Mr Mandelson, who describes Tony Blair as his "chief political hero", said in off-the-record remarks – reported in nationwide newspapers today – that the more politically ruthless Gordon Brown had penned Blair into a referendum on the euro next parliament.
Both Downing Street and Brown have quoshed the suggestion, saying that the decision on whether to join the euro would be made on economic terms. Currently, Downing Street says there is no final decision on the euro.
Commenting on Peter Mandelson’s remarks, Matthew Taylor MP, Liberal Democrat Shadow Chancellor, said: “Peter Mandelson has exposed the growing divisions at the heart of the Labour Party over Europe, which is becoming a test of old labour versus new; Chancellor versus Prime Minster.
“Europe continues to tear the Conservative party apart, but it is extraordinary to see the same divisions now opening up in the Labour party.
“The only people fit to take a decision on the euro are the British people in a referendum.
Speaking at the CBI annual dinner last night, Gordon Brown rejected widespread suggestions that he is anti-euro.
Mr Brown said: "I believe that membership of the euro can bring clear benefits to Britain in trade, investment and growth - benefits to British business, consumers and jobs. And our assessment will set them out.
He added: "If based on the five tests assessment, the economics are right we should join," he said. "If the economics are not right, we should not."
Commentators suggest that there is little likelihood of a referendum this Parliament as the government would not risk introducing such a controversial poll in the latter half of the term. Having suffered euro divisions, resignations over Iraq, poor (albeit not terminal) local election results and internal rebellion over key reforms, Labour would not want to hand the Tories a strong platform on the pound for the general election.
Nonetheless, with two former ministers of state Clare Short and Geoffrey Robinson rallying to Gordon Brown's defence today – and roundly attacking Mandelson as a "mischief-maker" – the woolly one message, on-message New Labour project is beginning to act like a traditionally British political party.
An announcement on the euro will be made by the chancellor in Parliament on June 9. Ahead of that, Cabinet is digesting 18 volumes each containing 2,500-pages of complex economic data and both Brown and Blair will meet ministers to hear their views.
(GMcG)
Mr Mandelson, who describes Tony Blair as his "chief political hero", said in off-the-record remarks – reported in nationwide newspapers today – that the more politically ruthless Gordon Brown had penned Blair into a referendum on the euro next parliament.
Both Downing Street and Brown have quoshed the suggestion, saying that the decision on whether to join the euro would be made on economic terms. Currently, Downing Street says there is no final decision on the euro.
Commenting on Peter Mandelson’s remarks, Matthew Taylor MP, Liberal Democrat Shadow Chancellor, said: “Peter Mandelson has exposed the growing divisions at the heart of the Labour Party over Europe, which is becoming a test of old labour versus new; Chancellor versus Prime Minster.
“Europe continues to tear the Conservative party apart, but it is extraordinary to see the same divisions now opening up in the Labour party.
“The only people fit to take a decision on the euro are the British people in a referendum.
Speaking at the CBI annual dinner last night, Gordon Brown rejected widespread suggestions that he is anti-euro.
Mr Brown said: "I believe that membership of the euro can bring clear benefits to Britain in trade, investment and growth - benefits to British business, consumers and jobs. And our assessment will set them out.
He added: "If based on the five tests assessment, the economics are right we should join," he said. "If the economics are not right, we should not."
Commentators suggest that there is little likelihood of a referendum this Parliament as the government would not risk introducing such a controversial poll in the latter half of the term. Having suffered euro divisions, resignations over Iraq, poor (albeit not terminal) local election results and internal rebellion over key reforms, Labour would not want to hand the Tories a strong platform on the pound for the general election.
Nonetheless, with two former ministers of state Clare Short and Geoffrey Robinson rallying to Gordon Brown's defence today – and roundly attacking Mandelson as a "mischief-maker" – the woolly one message, on-message New Labour project is beginning to act like a traditionally British political party.
An announcement on the euro will be made by the chancellor in Parliament on June 9. Ahead of that, Cabinet is digesting 18 volumes each containing 2,500-pages of complex economic data and both Brown and Blair will meet ministers to hear their views.
(GMcG)
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