Full Cabinet consultation before June 9 single currency deadline

Tony Blair was last night clinging to the prospect of a referendum on the euro before the next election after loosening the Treasury’s grip on future decisions about the single currency and giving the Cabinet a greater say. He gave pro-euro ministers the opportunity to flex their muscles against the more cautious Gordon Brown by announcing a 24-day countdown to the decision on joining the single currency that will involve every Cabinet member. The Prime Minister’s power struggle with Mr Brown over the biggest issue facing the Government now seems certain to continue right up to the next election. Mr Brown will announce the decision on June 9, after two full-scale Cabinet discussions, preceded by head-to-head meetings between Mr Blair, Mr Brown and individual ministers, and a thorough study by ministers of all the Treasury’s background studies and Mr Brown’s assessment of the five economic tests. Mr Brown will still conclude that the economic tests have not been passed and rule out an early referendum but the unprecedented consultation exercise gave pro-euro ministers fresh heart last night. Close associates of the Prime Minister suggested that the new freedom given to ministers over the politics of the euro decision will give them the right to make the case for membership in a far more positive way, and to argue for a referendum in the next two years if the economic conditions change. Failing that, they will press Mr Blair to signal that a decision will come early in the next Parliament.