England's reluctance to join the euro currency could be overcome by a Celtic alliance in the new Council of the Isles, according to the leader of the Scottish National Party (SNP).

The presence of Irish, Northern Irish, Scottish and Welsh representatives on the council is being seen in Edinburgh as the best way for the Celtic interest to force Lon don to enter the single European currency.

The idea was floated this week by Mr Alex Salmond, leader of the SNP, which is level pegging with the Labour Party in polls for the May election to the new Scottish parliament. He has promoted the Council of the Isles as far more than part of the Belfast Agreement. He sees it as the vehicle by which the independent Scotland he hopes to lead can continue to do business with the remainder of the United Kingdom.

It is also being used for leverage while Scotland remains within the UK, and as a reminder of what the SNP stresses at every opportunity - that Ireland enjoys the fruits of independence while being a committed member of the EU.

In a speech to the European Institute in Brussels, Mr Salmond said the new Scottish parliament would be a focus for the demands among Scots to join the euro. Scotland "can be channelled into the European mainstream by our parliament, by discussion in the Council of the Isles and by Scottish members in the European Parliament."

He argued that Wales and Northern Ireland would be advantaged by joining the currency, and that the Cardiff and Belfast assemblies would back such a move.

"If there is genuinely new democracy within the present UK, perhaps the diversity of views that may emerge might be expressed as part of the view of the UK as a whole, rather than be ignored," he said.

Although Scots are less sceptical about Europe, they remain divided over whether to give up sterling in favour of the euro.