Divided they stand

The differences between europhiles and eurosceptics in both parties in Britain are becoming more obvious. Hasan Suroor reports.

FEW ISSUES divide British politics more than the debate over Britain's entry into euro and neither Labour nor the Tory Party is entirely comfortable with the positions they have publicly taken.

With four months left before euro is officially launched as the common currency in 12 E.U. countries, the pressure on Britain to make up its mind is mounting and as the debate hots up the differences between the europhiles and eurosceptics in both parties are becoming more obvious.

The gloves have been off for some time, but now one can even detect an occasional dagger and attempts to hide it are not succeeding. Last week, the tension between the Prime Minister, Mr. Tony Blair, and his Chancellor of the Exchequer, Mr. Gordon Brown, erupted into a very public row over the timing of a referendum on euro.

Mr. Brown who was in New York, softpedalling euro, reportedly threw a fit over a Financial Times report, widely believed to be inspired by Downing Street, suggesting that he and Mr. Blair had agreed on a timetable for a referendum which could be as early as next year.

Mr. Brown who has consistenly argued against rushing into a single currency without first ensuring Britain's economic interests on the basis of a five-point economic test he has devised was reported to be furious and his aides angrily denounced the report as ``fantasy and garbage''.

The Prime Minister's ``camp'' let the controversy rest there but the point it wanted to make had been made - that a referendum on euro in his second term remained very much on Mr. Blair's agenda. In his election campaign, Mr. Blair promised a referendum ``within two years'' of his second term and the message wrapped up in the FT story was that he meant to stick to his self-imposed deadline.

Commentators pointed out that unlike Mr. Brown, a strong believer in economic determinism, Mr. Blair perceived single currency as ``fundamentally'' a political project. ``It has long been Tony Blair's deep conviction that Britain will not find its proper place in Europe until he has led us into the single currency, and he will not have secured his plinth high in the pantheon of Prime Ministers'', said Mr. Andrew Rawnsley, a leading commentator and writer of ``Servants of the People'', an incisive critique of New Labour.

Mr. Brown is not the only influential Labour figure who does not share Mr. Blair's enthusiasm for euro. Even the Foreign Secretary, Mr. Jack Straw, has publicly supported a more cautious approach. His first advice to the media after he took over as Foreign Secretary was to ``cool it''.

There is even more confusion in Tory ranks despite the party's unambiguous anti-euro official line. Tories contested the June general election on a high-pitched save-the-pound campaign telling voters that a Labour victory would mean the beginning of the end of the pound.

But when the party ended up with another humiliating defeat doubts began to emerge if so much stress on euro was really such a good idea - and now there is a real possibility of a known europhile, the former Chancellor, Mr. Kenneth Clarke, being elected its leader.

Although Mr. Clarke has declared that in the event of a referendum he would vote ``yes'' in contradiction of his party's official line, few would be surprised if he defeats his europhobic rival, Mr. Ian Duncan Smith, widely seen to represent the traditional Tory ``values'' more strongly than Mr. Clarke. Tories are deeply divided as they set out to decide whether to choose a leader who despite his strong pro-euro position is more likely to succeed in making the party electable again or opt for a ``true blue'' Tory who has even less charisma than the unlamented Mr. William Hague.

Having lost two successive elections, Tories who regard themselves as the ``natural'' party of governance clearly are not in the mind to lose a third and there is a growing temptation to dump the pound for a possible return to power under Mr. Clarke.

Mr. Clarke of course has made clear that he will not tamper with the official position and, when there is a referendum, Tories will be free to vote the way they wish. However, there is no glossing over the contradiction inherent in a situation where the party chief votes against the official line on a key issue.

Even Mr. Clarke's supporters are conscious of the Alice-in- Wonderland scenario which would see the Tory boss endorsing Labour on euro every time the issue comes up in Parliament while his party colleagues take the opposite line.

The confusion at the political level is also reflected in public opinion. It is believed that people are overwhelmingly against Britain's entry into euro but in the general election they had no hesitation rejecting the only anti-euro party. One view is that the popular anti-euro sentiment will assert itself on the day of the referendum, unless Labour launches an intensive campaign to ``educate'' the people. Much of course will also depend on how well the euro launch, scheduled for January 2002, goes.

``If it goes without a hitch then next summer will see millions of British holidaymakers in Greece, Spain, Italy, France and Portugal having to get used to handling euros themselves. It would psychologically prepare them for a changeover at home...'' according to The Observer. But if the launch does not go well, Mr. Blair could find his historic mission falling around his ears.

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