The British Prime Minister, Mr Tony Blair has said it would be a mistake for Britain to stay out of the European single currency but that economic conditions have to be right before joining.
"For a Europe of 25, for Britain on political grounds to stay out of the single currency is a mistake, but as to the time line as to when we join, that has got to be decided according to the economics," he told a parliamentary committee this morning.
"I want to see us in the single currency but it has to be on the basis that the economic conditions are in place," he added.
Mr Blair and the Chancellor of the Exchequer, Mr Gordon Brown, ruled last month that the economics were not yet right to call a referendum on swapping the pound for the euro.
But they pledged to launch a national debate on the benefits of being part of the European currency club and said a national referendum on the euro could be held as early as 2004.
"It is essential for the country to keep open the option of the single currency," Mr Blair said.
"I believe this country should be a full player in Europe, that we should be right in the centre of Europe," he told the Liaison Committee, which groups more than 30 heads of other select committees.
"I happen to believe in principle British membership of the single currency is right. I think it would be good for stability, good for investment."