Brown restates cautious euro policy

British Chancellor of the Exchequer Mr Gordon Brown has firmly restated the government's cautious policy towards joining the …

British Chancellor of the Exchequer Mr Gordon Brown has firmly restated the government's cautious policy towards joining the euro.

In his annual Mansion House speech to London's financial district, Mr Brown emphasised Britain's future lay in Europe but sought to lay to rest speculation in financial markets that the newly reelected Labour government would go for an early referendum on the euro.

He said the Treasury's assessment of the government's five economic tests for joining Europe's single currency would be "comprehensive and rigorous".

"In principle, British membership of a successful single currency offers us obvious benefits - in terms of trade, transparency, costs and currency stability," he said.

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But he said: "To short-cut or fudge the assessment, and to join in the wrong way or on the wrong basis without rigorously ensuring the tests are met, would not be in the national economic interest.

"Our approach is, and will continue to be, considered and cautious - one of pro-euro realism."