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Ministers say atrocities strengthen case for joining the single currency

Labour conference: Europe

Andrew Grice
Monday 01 October 2001 19:00 EDT
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Pro-European ministers said yesterday that the terrorist attacks in the United States have strengthened the case for Britain joining the single European currency.

They reopened their campaign for a referendum on the euro before the next general election by arguing that the need for greater international co-operation has been illustrated by the atrocities.

Charles Clarke, the Labour Party chairman, said the political case for joining the euro had been made "stronger" by the new world climate since 11 September. But he admitted that it was too soon to tell whether the economic case had strengthened or weakened.

Another pro-European minister said: "The terrorist attacks have shown that it is pretty futile to think any country can go it alone. EU members are standing firm against terrorism and this will help us make the case for closer integration."

Patricia Hewitt, the Secretary of State for Trade and Industry, acknowledged that joining the euro could ease the pressure on British industry. She told the Labour conference: "More than any other sector, manufacturing firms trade in Europe. So jobs in manufacturing are particularly vulnerable to the exchange rate. That is why – provided our economic conditions are met – it is in the interests of British manufacturing workers for Britain to join the European single currency."

Simon Murphy, leader of Labour's members of the European Parliament, will warn the conference today that Britain should not remain "on the sidelines" of Europe and called for an early assessment of the five tests which the Government says should be met before joining the euro. "The longer we stay outside the euro, the greater our loss of influence," he will say.

Gordon Brown, the Chancellor, who is sceptical about an early referendum, admitted in his conference speech that the events since the terrorist attacks had shown Britain "gained strength from our membership of the EU and [we] are stronger acting in concert with others than we could ever be alone".

But he insisted the decision on the euro should be made on economic rather than political grounds. His aides added that it was "far too early" to analyse the impact of the terrorist acts on the British economy.

Britain in Europe, which supports the euro, held a reception in Brighton last night attended by Mr Clarke, the Leader of the Commons Robin Cook, the Secretary of State for Transport, Local Government and the Regions Stephen Byers, and the Secretary of State for Culture, Media and Sport, Tessa Jowell.

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