Mandelson criticises stance over EU

EU Trade Commissioner Peter Mandelson attacked the British government's half-hearted approach to Europe yesterday, particularly over its failure to make the case for the euro.

Traditionally ambivalent attitudes to the European Union in Britain have hardened under Tony Blair's centre-left Labour government, in power since 1997, with many Britons becoming more sceptical about closer ties with the 25-member bloc.

This has made it harder for the pro-European Blair, holder of the EU's rotating presidency, to persuade other members of his vision of a globally competitive and economically flexible Europe.

"The pro-European movement in this country has suffered from the stop-go approach of the present government in respect of the single European currency and to a lesser extent the (EU) Constitution," Mr Mandelson said on the sidelines of the Labour Party's annual gathering.

Mr Mandelson, a former Labour minister who was forced to resign twice, has traditionally been seen as a close Blair ally.

In 2003 Britain decided against holding a referendum on the euro because Mr Blair's finance minister and likely successor Gordon Brown said five economic tests had not been met.

Mr Mandelson criticised the government's failure to make the political case for entry to the euro zone.

"There has never been a good time, let alone a perfect time to make a push for entering into the single European currency... the pro-European movement has been a casualty of that," he said.

Mr Brown, whose once close relations with Mr Mandelson have deteriorated, is widely viewed as being more sceptical about the benefits of the EU than Mr Blair who has declared an aspiration to put Britain at the heart of Europe.

In a thinly veiled attack on Mr Brown, who frequently compares low unemployment and inflation in Britain with its European neighbours, Mr Mandelson said some senior figures had pedalled the line that Europe had become an economic "drag anchor".

This, along with the characterisation of some European economies as bordering on being "basket cases" had diminished the business case for euro membership, said Mr Mandelson.

"If we lose sight of the business case for Europe we are in danger of seeking our economic argument weakened."