Fowler backs `loyal' Clarke in EU row

Sir Norman Fowler, former Conservative Party chairman, last night warned Tory MPs in the bluntest terms against trying to bring down Kenneth Clarke and denied the Chancellor was involved in a "plot" over the single European currency.

Sir Norman, a long-term friend of the Chancellor, told Mr Clarke's critics that the Chancellor was "one of the strongest ministers in the Government" and a "notably loyal colleague". He added: "It is entirely ludicrous to describe his comments on the single currency as some kind of internal party plot."

His staunch defence of Mr Clarke came after a biting attack on the Chancellor by his predecessor, Norman Lamont, who defied John Major's call for peace in the Tory ranks.

Mr Lamont also in effect accused Mr Major of dithering over the single European issue. In barely coded terms, Mr Lamont made it clear he believed Mr Major was failing to show proper leadership on the issue.

"This is an issue of principle, not of tactics or timing. We have had ample time since the Maastricht treaty to consider this matter. We will not resolve this issue by deciding to be undecided," Mr Lamont told the Oxford Union.

The attack was reinforced by Tony Blair, the Labour leader, who said that the Government was "paralysed" by the "fault line" between Mr Major and Mr Clarke. Addressing the Oxford Union, Mr Lamont called on Mr Major to reject a single currency. "If the other countries of Europe go ahead with a single currency, we should not participate but wave them goodbye."

Mr Lamont concentrated most of his fire on the Chancellor, repudiating Mr Clarke's contention that it was possible to have monetary union without political union. "You cannot make a monetary union of the type envisaged in the Maastricht treaty without political controls," Mr Lamont said.

Mr Clarke, touring Wales, brushed aside the attacks. He told one interviewer to "give it a rest" and insisted there were more important issues, such as job creation and the economy but Tory MPs privately said European policy was likely to destroy their election chances.

David Williamson, secretary general of the European Commission, told Mr Major's Government that there was no need to "panic" over the single European currency and the alleged threat to border controls, a message underlined last night by Sir Leon Brittan, vice-president of the commission.