Britain will not rejoin the EU exchange rate mechanism (ERM) before its possible entry into the euro single currency zone, British Chancellor of the Exchequer, Mr Gordon Brown, reaffirmed yesterday.

"Our aim is a stable and competitive pound over the medium term. That is the policy that we are pursuing, that is the policy that is right for Britain's economic interest. We are determined to have a sensible policy on Europe," he said.

Mr Brown's latest insistence that Britain will not join the ERM again contradicted the position of European Union officials who said ERM membership was required as a condition of joining the euro zone.