The Conservative leader, Mr William Hague, predicted yesterday that the euro would be a dominant issue in the general election expected next year following the leak of yet another memorandum from Downing Street. The memorandum indicated Downing Street's acceptance that the "political" case for membership of the Single Currency is already made.
The memo, from Mr Blair to senior aides, was leaked again to the Sun and Times newspapers. In the memo Mr Blair says: "On the euro we need to be firmer, more certain, clearer. The truth is the politics is overwhelmingly in favour: but the economics has to be right, and at present it is not. It would be far better to be open and up front about this."
An accompanying memo, from Mr Blair's adviser Mr Philip Gould, caused additional embarrassment, acknowledging that Europe was "a life-preserver" and helped make the Conservatives "relevant and more electable".
Denying any involvement by his party in the leaks, Mr Hague declared: "It is clear the Prime Minister wants to scrap our currency and join the euro as soon as possible."