Euro: UK entry unlikely under Blair

Tony Blair has all but ruled out the possibility of Britain joining the euro during a Labour third term, saying "it doesn't look very likely" the economic tests will be met in the near future.

Speaking to reporters at a press conference on Thursday morning, the prime minister said: "I have always said politically the case for going in is strong.

"But economically you have got to meet the tests."

He added: "If the economics aren't right, if it won't help your country economically, you don't do it.

"At the moment there is no part of business and industry clamouring to say we need this for our economy, so it doesn't look very likely."

On Thursday Blair conceded that the business community did not want to close off the option, but he reiterated that the sensible position was to apply the economic tests and decide what is in the national economic interest.

And he said at the moment it clearly isn't in the best interests of Britain, but "whether that changes or not is a matter for the future".

In response to Blair's comments, Liberal Democrat chairman Matthew Taylor said: "We had understood that the chancellor was carefully analysing five economic tests and reporting to parliament regularly.

"It is odd for the prime minister to prejudge this ongoing process on a television programme."

Taylor said Britain's decision whether or not to join the euro was one of the most important decisions that Britain could take, and it  should be "a matter for the British public in a referendum".