The British government unveiled its legislative plans for the year yesterday but plans for a referendum on euro entry were conspicuous by their absence, quashing speculation that a change of gear was afoot.

Instead, the Blair government restated its long-held policy - Britain will join the currency club only if it makes economic sense and it will make that judgment by mid-2003.

"My government will make a decision on whether to recommend entry into the single currency on the basis of the assessment of the five economic tests to be completed by next June," Queen Elizabeth told parliament as she opened its new session.

Officials said the absence of a referendum bill did not mean euro entry had been ruled out. But time was running short.

Pollsters say it will take many months to convert sceptical public opinion. Polls show most Britons want to keep sterling.

If a vote is not held in 2003, the whole project will be shelved until after the next election, expected in 2005. The government says it will take a minimum of two years after a Yes vote to prepare Britain for currency switchover.

Welsh Secretary Mr Peter Hain, a pro-euro minister who has a brief to talk about European policy, told reporters that assessment would take place "before early June".

"I'd anticipate the assessment taking place before early June ... and depending on the outcome, other events may or may not follow," he said.

Sterling inched up against the euro and pared losses on the dollar in reaction although dealers said there was no change to the government's long-held policy. - (Reuters)