Britain's electoral politics are intimately bound up with the issue of joining the European single currency. Thus, it is not surprising that today's special cabinet meeting, called by Mr Blair to consider the Labour Party's election strategy, should coincide with another round of discussion about the best approach to the euro issue. Given its current unpopularity, attitudes towards the euro are bound to affect how voters approach the election and how the government decides to handle the issue in the forthcoming campaign. The key question is whether joining the euro will become a part of Labour's platform, or whether the party can distance itself from such a precise commitment. That is why Mr Blair is so reluctant to depart from the position set out three years ago by the Chancellor, Mr Gordon Brown, saying there are no political or constitutional barriers to joining the euro, but that five economic criteria must be met before the decision is made. Together with the commitment to hold a referendum, such a formula would allow those who support Labour but oppose the euro, to vote for the party in good conscience.
This week's political debate has opened up several questions about whether that formula is politically sustainable and credible. It has also reopened media speculation about the reportedly venomous personal relations between leading members of the Labour government. In particular Mr Peter Mandelson, the Northern Ireland Secretary, has raised doubts about whether it makes sense for Labour simply to assume the political and constitutional case for joining the euro is settled if that means these issues are not forcefully addressed by ministers. Whatever about political leaders, the voters remain thoroughly unconvinced.
Mr Mandelson drew the conclusion that this is a tactical error. He told a business audience it is a mistake to believe there is no need for strong political and constitutional arguments in favour of the euro. His remarks will not please Mr Brown, who continues to believe the five economic tests are the crucial benchmark involved; to shift from that position would invite the Conservatives to claim convincingly that the election will be primarily about whether to join the euro. He would prefer to fight the election on the economy, where he has shown a good record.
Mr Blair and the Foreign Secretary, Mr Robin Cook, have made forthright speeches this week defending Britain's enthusiastic participation in the EU, on grounds of national interest and patriotic sentiment. They say convincingly that this is the only way to ensure Britain optimises its influence in an interdependent world. To counterpose sovereignty to influence makes no sense in contemporary international life. This vigorous message is welcome news for other Europeans; but it cannot sit for too long with indecision about the euro, participation in which remains the cornerstone of influence in the EU system.