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European Affairs

Let me explain for the hon. Gentleman that we do not think that Britain should join the euro in the near term. There was some inaccurate reporting—just for a change—of the Liberal Democrat position, but it has been our position for more than one Parliament that UK entry into the euro could not happen in the space of a few years. The situation would have to converge and develop over a period of time. It will be particularly interesting to see whether this downturn changes some of the British economy's underlying characteristics, however, which might make it easier to join, particularly with respect to monetary markets and how they operate. These are interesting times. There are a lot of questions to which none of us in the House yet knows the answer. I am looking forward to having this debate in a year or two's time, when the dust has settled and when I happen to believe that the evidence will be on our side.