[A-List] UK eurozone membership

["Michael Keaney" <michael.keaney@xxxxxx>]

 Foes join forces on euro

Nicholas Watt, political correspondent
Monday June 2, 2003
The Guardian

Peter Mandelson today joins forces with Michael Heseltine to warn that
Britain's success as a trading nation will be at risk if the government
rules out membership of the single currency.

With a week to go until Gordon Brown announces his decision on the five
economic tests, the two political opponents intensify the pro-euro campaign
by saying that Britain would now be better off by £12bn if the country had
joined the euro at its launch.

Lord Heseltine and Mr Mandelson are among 10 former trade ministers who have
signed a letter to every cabinet minister which says: "We believe it is
vital that the government seize the opportunity to join the euro in this
parliament.

"New research published today shows that if we had joined the euro at its
launch, our trade would have been £12bn higher in 2001 - and that this
opportunity cost is mounting every year."

The letter refers to a new study, written by three economists from the
Inter-American Development Bank, which shows that Britain's trade with
euroland would have increased by 14% if it had joined in 1999.

The former ministers say: "Britain has made this mistake before, with
calamitous results. When Britain decided not to join the Common Market in
1958, our economy was well ahead of France's and Germany's. By the time the
blunder was repaired in 1973, we lagged far behind. We have still not caught
up: nine of the 12 euro countries are both richer and more productive than
us."

The carefully chosen words in the letter - the first public pronouncement on
the euro by Mr Mandelson since he accused the chancellor of out-manoeuvring
the prime minister - show that the pro-Europeans have accepted that the
chancellor will deliver a "not yet" verdict when he announces his decision
next Monday.

But their intensive campaigning is designed to strengthen the hands of
Blairites hoping to keep alive the possibility of a referendum later this
parliament.