LABOUR'S Euro sceptics yesterday sounded a warning to their party's leadership about the dangers of joining a European single currency, claiming it threatened major cuts to public services.
Left wing MPs led by Mr Alan Simpson, Mr Jeremy Crbyn and Mr Ken Livingstone joined campaigners in a series of eve of conference fringe meetings in Blackpool to fight closer links with Europe.
There are about 50 Euro sceptic Labour MPs and many trade unionists fear meeting the tough Maastricht criteria for entry into European Monetary Union could result in huge job losses and billions wiped off public spending.
Mr Livingstone told a fringe meeting: "If we join EMU with the commitment of the Maastricht Treaty, you will lock us into a recession and break the Labour government. That will let in the Tories."
Mr Geoff Martin, London area convenor for the public service union, Unison, said: "It would be madness to join EMU because it would mean £18-£20 billion in spending cuts.
I will be warning a Labour government against joining, otherwise they will be sowing the same kind of grievances here that the public sector unions have in France.
"We want a clear commitment we won't enter on the current criteria and that a formal position will be put in a referendum."
The veteran Labour cabinet minister, Baroness Castle, rejected Mr Tony Blair's compromise proposal of a social commission to look into pensions.
Lady Castle (85), who wants pensions linked to earnings, said she was not satisfied with the deal hammered out in secret with Mr Jack Jones (83), former general secretary of the Transport Union.
She accused the shadow chancellor, Mr Gordon Brown, of "putting the frighteners" on Labour Party delegates as their conference got under way in Blackpool and of warning them not to mention spending money.
Lady Castle said on BBC 1's Breakfast with Frost: "If it wasn't for that, conference would vote overwhelmingly for our proposal ...I have no doubt we have prevailed in the argument."
Mr Brown, interviewed on the same programme, said he thought the leadership would win the vote this week on pensions.
"This is about justice and building a new trust with the British people," he said.
But he insisted: "There have to be tough controls on public spending.
"The money isn't there. The Tories have misused public finances so we have got to be strict and disciplined. That's the only way we can achieve our social objectives.
"I think most people when they see this will see it is fair and in the interests of the whole population."