By JAMES CHAPMAN Lord Mandelson was at the centre of a row last night over 'secret' plans to ditch the pound after an explosive claim that Britain is ready to join the euro. The European Commission president said the UK was 'closer than ever before' to signing up to the single currency. Jose Manuel Barroso said he had held private conversations with 'the people who count in Britain' and knew that they were ready to move into the euro-zone. Euro bombshell: Business Secretary Lord Mandelson and Jose Manuel Barroso That was widely seen as a reference to Lord Mandelson, who said at the weekend that 'our aim' should be to join the euro. Lord Mandelson was the loudest cheerleader for the single currency during his stints in Tony Blair's Cabinet and has just been recalled from Brussels, where he was Britain's EU Commissioner. But now he appears at odds with his new boss Gordon Brown. Downing Street denied there had been any policy shift and said it had 'no plans' to ditch the pound. Sources said the suggestion that Britain was ready to enter was 'wishful thinking'. Mr Barroso's remarks led to a backlash in Westminster. Shadow foreign secretary William Hague pledged that there were 'no circumstances' in which a Conservative government would propose joining the euro. The Tories were understood to be preparing Parliamentary questions to Mr Brown, Lord Mandelson and other ministers to establish what discussions had been held with EU chiefs over euro entry. Mr Barroso said senior British politicians believed the recent economic turmoil made membership of the single currency a far more attractive option. He boasted that the recession had weakened faith in the pound. Speaking to French radio, the former prime minister of Portugal said: 'We are closer than ever before. I'm not going to break the confidentiality of certain conversations, but some British politicians have already told me "If we had the euro, we would have been better off". 'I know the majority in Britain are still opposed but there is a period of consideration under way and the people who matter in Britain are thinking about it.' Mr Hague said: 'Keeping the pound is vital for Britain's economic future. We need interest rates that are right for Britain, not the rest of Europe. 'If Labour Ministers still want to get Britain into the euro, they should come out and say so.' Nigel Farage, leader of the UK Independence Party, said: 'If Barroso would like to consult the "people who matter in Britain" then he can call for a referendum on the euro so the people of Britain can tell him where to go.' Lord Mandelson had told a political conference on Saturday: 'Our aim, our goal, should be to enter the single currency.' But he conceded that the Government was 'obviously not going to take on that challenge' in the current economic climate. Sources close to Lord Mandelson insisted last night that he had had no private discussions on euro entry with Mr Barroso. He also accepted that Mr Brown's five economic tests set in 1997 must be met before Ministers would hold a referendum. A European Commission spokesman said Mr Barroso's comments were 'reflections'. He added: 'The British are very pragmatic. When they feel it is right to join the euro, they will.'Mandelson at centre of 'ditch the pound' row as European Commission president claims Britain is ready for the euro
Last updated at 11:24 AM on 02nd December 2008
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