The British government continued facing both ways on the euro yesterday, as 10 Downing Street insisted that British membership of the single currency was not "inevitable".
The corrective came after the Foreign Secretary, Mr Robin Cook, said he believed it was, and following the clearest indication yet that the Prime Minister, Mr Blair, intends to put the issue to the people in a referendum soon after the next general election.
Mr Cook told trade unionists in London on Thursday that while opinion polls confirmed a majority at present against British membership of the euro, they also revealed that two-thirds of the public think it inevitable. And he declared: "I think they are right."
That evening, on the BBC's Question Time, Mr Blair gave what was regarded as his most positive assessment to date of the prospects of British entry. While insisting that he would not "bend" the five economic tests, he said: "Provided the economic conditions are met in the next parliament, we will recommend going in and there will be a referendum . . . If we carry on this way, I believe we will be able to make a recommendation early in the next parliament."
But as the President of the European Bank, Mr Wim Duisenberg, re-entered the debate, declaring that Britain had satisfied nearly all the conditions for membership, Downing Street appeared once more in retreat. In comments instantly taken as a rebuke to the Foreign Secretary, the Prime Minister's official spokesman insisted: "It's our objective to join a successful single currency, providing the economic conditions are met. It is not inevitable but it's our objective."
And as the Chancellor of the Exchequer, Mr Gordon Brown, brushed off questions about this latest evidence of a cabinet split, the shadow chancellor, Mr Michael Portillo, said: "Any amount of spin cannot hide the fact that this government is in a state of disarray."
Mr Portillo continued: "Downing Street spin doctors have launched a panic rearguard action to try and cover up Robin Cook's remarks when he confirmed that the Labour government wants to scrap the pound.
"Ministers are not only committed to the euro in principle but believe membership is inevitable. Their outlook for Britain is defeatist. They ignore the evidence that Britain can survive and thrive outside the euro." And he accused ministers of seeking to mislead voters "as to the very real political dimension of joining economic and monetary union".
Mr Cook's comments represent the clearest statement in favour of euro membership by any member of the government, and follow reports that he, together with the Northern Ireland Secretary, Mr Peter Mandelson, and the Secretary of State for Trade and Industry, Mr Stephen Byers, are pressing Mr Blair to shift policy and give an assessment of Britain's readiness to join the euro before the election.
PA reports:
Euan Blair, the British Prime Minister's son, has been "reprimanded" by police for being drunk and incapable. The reprimand was given when Mr and Mrs Blair accompanied their son to Kennington police station, south London.
Euan Blair was arrested last Wednesday night when he was found drunk in London's Leicester Square. A Downing Street spokesman said: "Euan was reprimanded for being drunk and incapable on Wednesday evening. This is in accordance with the final warning scheme that came into effect last month."
The Blairs had been expected to accompany Euan to Charing Cross police station, where he had been held on Wednesday night. Downing Street stressed that the family had received no special treatment by visiting Kennington station, to avoid the media at Charing Cross.