Blair's road map to euro entry

Tony Blair is seeking to persuade Gordon Brown to agree a road map for the UK to join the single European currency, preferably before the next general election.

With the stand-off between the two most powerful figures in the Government dragging on, Mr Blair has been warned by his own supporters that he will look like a man who has "lost his bottle" if he gives in.

If the Blair camp gets its way, the map will include the promise of another review of the Treasury's tests for euro membership in a few months, keeping open the possibility that Britons might go to the polls in a referendum in 2004.

Blair's allies also want Parliament to push ahead with legislation to enable a referendum to be called at short notice. They want a parliamentary Bill to specify the exact words that would appear on a ballot paper, a point that could provoke fierce controversy because of the possibility that the wording of the question could influence the way people vote.

Giles Radice, a former chairman of the Commons treasury committee and an ally of Mr Blair, said that the stand-off will decide which of the two men is actually running the Government.

"Tony wants a road map to entry, partly for economic reasons, partly for political reasons. He wants to be able to say it's a question of 'when' not 'if' – whereas Gordon is trying to say 'if'," Lord Radice said. We are now going to see who is the real prime minister. The Britain in Europe campaign is right to put the question: 'Have you got the bottle, Tony?'"

To increase the pressure on the Prime Minister, the main pro-euro pressure group, Britain in Europe, this morning publishes a long list of leaders of foreign firms, including the heads of Ford and Toyota, which have invested in the UK economy but might pull out if the UK loses interest in joining the euro.

The Chancellor wants to rule out a referendum this side of a general election, and to put the onus on the EU to reform institutions like the European Central Bank before Britain joins.

On Tuesday, he will take part in the first meeting of EU finance ministers since 10 new countries from eastern and southern Europe were admitted to membership. Seated between the finance ministers of Latvia and Cyprus, Mr Brown will put the case for sweeping reforms to free up trade between EU countries.

Interviewed for today's GMTV Sunday programme, Mr Brown said: "I believe that there is a strong determination on the part of many people that the pro-Europeans should unite on an economic reform agenda."

Mr Blair and Mr Brown had a long private meeting in Downing Street, with no officials in the room, before last Thursday's Cabinet meeting, but failed to agree.

The Treasury has completed 18 separate studies of the potential impact of joining the euro, which are said to amount to one of the most impressive and authoritative bodies of work ever produced by civil servants. The political argument between the Treasury and No 10 is not about the studies themselves, but about the accompanying set of conclusions, drafted by Mr Brown and his chief adviser, Ed Balls.

It had been hoped that the studies would be published this week, with a statement in the Commons delivered by Mr Brown. But his inability to reach agreement with the Prime Minister has meant the statement has been delayed for at least a week, and possibly until June.

The final deadline, set by Mr Blair, is 13 June – the second anniversary of when Parliament first met after the last general election – but both Mr Blair and Mr Brown would prefer that it was delivered before MPs go away for their Whitsun break, on 22 May.

One insider suggested that the gulf between them is so wide that it will be impossible to bridge it before June. He said: "Don't be surprised if they go right to the wire."

The Conservative leader, Iain Duncan Smith, a long- standing opponent of British membership of the euro, yesterday told Mr Blair that he should either call a referendum quickly or cancel the idea.