In These New Times

A new paradigm for a post-imperial world

Mandelson Praises Euro

Posted by seumasach on June 12, 2009

As we predicted at the time, the return of Mandelson has reopened the question of joining the Euro. Recent events tend to confirm that Mandelson has influential backing within the British elite: his coming out on the euro seems to indicate, therefore, a deep division within them. We could posit that Mandelson represents a “realist” element, who recognise the game is up for the pound. It will be interesting to look for the reaction to this statement.

Daily Mail

12th June, 2009

Lord Mandelson has reopened the divisive issue of joining the single currency.

The Business Secretary described it as an “important objective” for Britain during a trip to Berlin, hailing the euro as “a great success”.

It is the first time such a senior minister has openly enthused about the euro for over five years. Gordon Brown effectively closed down the debate on scrapping the pound with his five tests in

The First Secretary of State said: “Does it remain an important objective for Britain to find itself in the same currency as that single market in which it interacts? Obviously yes.”

He insisted that such a decision was for “the future” and had to be made on the “right terms in the right circumstances”.

However, he added: “It is perfectly clear that the euro has been a great success in anchoring its eurozone members during the financial crisis.

“I hope people will recognise that this represents a major vindication for the single currency.”

However, the Tories stressed that countries that had joined the euro had lost control over monetary policy.

Shadow foreign secretary William Hague said: “It is deeply disturbing that the man who now makes most of the Government’s policies has declared that Britain should join the euro.”

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