Despite opposition, Britain readying to join euro by 2010

Countering earlier expectations,Prime Minister Tony Blairhas ruled out calling a referendum on the UK's joining the euro this year, even if the five tests are passed. Mr Blair believes the public's and the business sphere's resistance cannot be turned around without a longer campaign that might last for a year. If the five tests produce a dubious result, Mr Blair intends to revisit the questions in 2004, and to schedule a referendum only afterwards. Mr Blair's aim is to reverse the current 2-1 majority against the country's joining the euro. "We have to allow a significant time to pass between the assessment [of the five tests] and a referendum", he said.

Chancellor of the Exchequer Gordon Brownappears to take a more cautious stance. In his opinion, the five tests will likely deliver a "not yet" verdict. Mr Brown would also like to see reforms to the European Central Bank before committing Britain to the common currency.

According toKate Barker, a member of the Bank of England's Monetary Policy Committee, Britain would face "economic difficulties" if it tried to join the euro this year. Ms Barker has told reporters the exchange rate and the difference between the UK and Europe on economic policy "could be obstacles".

Theadvocates of the eurobelieve that Mr Blair, in close cooperation with Mr Brown, should engage in an all-out referendum campaign, which then could turn the tides and lead to a "yes" vote.

According to an influential

"Captains of the Industry" pollconducted by Market and Opinion Research International (MORI), 50 per cent of the country's 164 top business chairmen and CEOs asked do not support the "principle of British participation" in the euro zone. The euro's supporters represent 42 per cent. In the first such poll in 1997, support for the euro stood at 70 per cent. Of more than 1,000 members of the British Chamber of Commerce asked by MORI, 49 per cent said if the five tests are passed, the UK should "wait and see how the euro develops before making a decision", and 35 per cent said Britain should join "as soon as practicable".

Meanwhile, thepublic'sexpectations toward Britain's joining to euro appear to be rising steadily. While in 1999 less than 40 per cent of Brits expected the UK to be in the euro by 2010, the respective figure today exceeds 70 per cent. The public appears to be resigned to the UK's euro prospects, for all its reservations.