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05/06/2003
Cabinet meets ahead of euro announcement
The last sitting of the full Cabinet on the single European currency took place today, before Chancellor Gordon Brown finally rules on the matter next Monday.
The Prime Minister said at his monthly press conference ealier this week that there was an emerging Cabinet consensus on the issue – in other words ministers will rubber stamp Gordon Brown's anticipated 'not just yet' decision, or non-decision, on entering the single currency. That consensus will become government policy following today's meeting.
During the meeting, which had been expected to last around three hours, ministers would be invited to put their views forward, but there would be no vote on the matter - only summing up from the Prime Minister.
In reaching this point, Cabinet ministers have already had to wade through masses of complicated economic data on the euro amounting to 18 documents and 1,738 pages – around seven kilos of analysis.
Earlier today, the Prime Minister's Official Spokesperson said that the Prime Minister had devoted a "huge amount of his own personal time and energy" to what was a "very important" decision for any government.
The government's position remained, he said, that Britain should enter the single currency in principle and that the decision "must be based on a rigorous assessment" of long-term economic interests.
"The decision would be made in the national economic interest," said the spokesperson.
The key to Monday's declaration is of course the chancellor, and - for his leadership pretentions - Mr Brown is keen to be seen as the man who brought Britain through its biggest domestic peacetime challenge.
Tony Blair is known to favour the euro and has been pressuring the treasury into delivering a referendum before the next general election.
However, that is now unlikely – particularly after 'New' Labour architect Peter Mandelson's not-so-off-the-record briefing to journalists last month. He told political journalists that Mr Brown – an "obsessed" politician – had "outmanoeuvred" the Prime Minister on the euro. Thereby paving the way for a delay decision - and also put some distance between Blair and Brown.
That will not displease the Tories – a party with its own deep euro divisions – which today claimed that Britain would boom outside the single currency.
Shadow Chancellor Michael Howard said that the UK was the most popular destination for foreign companies, while those EU nations which have adopted the single currency have seen their share of overseas investment fall back.
The Shadow Chancellor stated: "The biggest deterrent to inward investment is the fear of economic instability. If Britain joined the euro, we would no longer be able to set interest rates on the basis of economic conditions in the UK. That would put investment and the jobs that depend on it at risk."
(GMcG)
The Prime Minister said at his monthly press conference ealier this week that there was an emerging Cabinet consensus on the issue – in other words ministers will rubber stamp Gordon Brown's anticipated 'not just yet' decision, or non-decision, on entering the single currency. That consensus will become government policy following today's meeting.
During the meeting, which had been expected to last around three hours, ministers would be invited to put their views forward, but there would be no vote on the matter - only summing up from the Prime Minister.
In reaching this point, Cabinet ministers have already had to wade through masses of complicated economic data on the euro amounting to 18 documents and 1,738 pages – around seven kilos of analysis.
Earlier today, the Prime Minister's Official Spokesperson said that the Prime Minister had devoted a "huge amount of his own personal time and energy" to what was a "very important" decision for any government.
The government's position remained, he said, that Britain should enter the single currency in principle and that the decision "must be based on a rigorous assessment" of long-term economic interests.
"The decision would be made in the national economic interest," said the spokesperson.
The key to Monday's declaration is of course the chancellor, and - for his leadership pretentions - Mr Brown is keen to be seen as the man who brought Britain through its biggest domestic peacetime challenge.
Tony Blair is known to favour the euro and has been pressuring the treasury into delivering a referendum before the next general election.
However, that is now unlikely – particularly after 'New' Labour architect Peter Mandelson's not-so-off-the-record briefing to journalists last month. He told political journalists that Mr Brown – an "obsessed" politician – had "outmanoeuvred" the Prime Minister on the euro. Thereby paving the way for a delay decision - and also put some distance between Blair and Brown.
That will not displease the Tories – a party with its own deep euro divisions – which today claimed that Britain would boom outside the single currency.
Shadow Chancellor Michael Howard said that the UK was the most popular destination for foreign companies, while those EU nations which have adopted the single currency have seen their share of overseas investment fall back.
The Shadow Chancellor stated: "The biggest deterrent to inward investment is the fear of economic instability. If Britain joined the euro, we would no longer be able to set interest rates on the basis of economic conditions in the UK. That would put investment and the jobs that depend on it at risk."
(GMcG)
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