The report raised the possibility of Europe launching a "soft" single currency which the Tories believe threatens to drive the pound higher, and risk recession in Britain, and could lay down the battle lines between the parties for the general election.
Mr Blair expressed concern about the "very high level of the pound" for exporters, but firmly rejected claims by William Hague, the Tory leader, that the Commission report had "fudged" the debt ratios of eight of the 11 countries.
The Prime Minister told MPs: "There are a range of criteria to take into account. When we take our decision as president of the European Commission we will do it on the basis of the report."Reuse content