Major faces fresh crisis over EU single currency

THE British Prime Minister, Mr Major, was once again plunged into a crisis over Europe last night after failing to convince angry…

THE British Prime Minister, Mr Major, was once again plunged into a crisis over Europe last night after failing to convince angry MPs that the Chancellor, Mr Kenneth Clarke, will not be allowed to make concessions on the EU's single currency before the Commons debates the implications for economic sovereignty.

After another day of turmoil in Westminster's bubbling Euro war, Conservative Euro sceptics at last night's crowded meeting of the backbench 1922 Committee demanded cast iron assurances from Mr Major that Mr Clarke will make no irreversible deals with fellow finance ministers on December 2nd.

Mr Major had told a crowded Commons during Question Time that "no final decisions are being taken" at the finance ministers meeting (Ecofin) 10 days before the full Dublin summit on December 13th and 14th.

But Labour Party leader, Mr Tony Blair, later wrote to him to endorse the cries of "No" from sceptics on both sides which had greeted Mr Major's words. Quoting chapter and verse from earlier ministerial statements, Mr Blair told Mr Major his remarks had been "wholly inaccurate" and "quite wrong" at various points.

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Tory exministers like Mr David Heathcoat Amory, who resigned over Europe in July, agreed. One Tory sceptics later said it made him "sick to the back teeth to see the PM being out scepticked by Tony Blair.

Tory loyalists admit the issue has been mishandled since 150 MPs on both sides called for a proper debate on obscure regulations at the heart of a rowdy, symbolic government defeat in a Commons committee this week.

In refusing the debate Mr Major is almost certainly keen to prevent the combative Mr Clarke and his party critics beating the daylights out of each other under the TV lights. "Ken wouldn't back down, nor would they," said one MP. Mr Clarke's priority is getting Tuesday's electioneering budget right, not fighting the colleagues.

The Labour leader's chief interest is in widening the Tory split by backing calls for a full Commons debate on the three disputed EU regulations which would create a new exchange rate mechanism, create supra national monitoring powers and a "stability pact" to help sustain a single currency.

Mr Major yesterday argued "they would only apply to those countries that enter into a single currency, and promised MPs their routine pre summit debate next month - after the budget debate, but not before Ecofin.