Euro no threat to British identity, says Brown ally

Joining the single currency would strengthen rather than weaken Britain's sense of national identity, Tony Blair's "patriotism envoy" will claim in a report next week.

Michael Wills, a Home Office minister and a close ally of the Chancellor, Gordon Brown, will open a new round in Mr Blair's campaign to make the case for possible euro membership in a pamphlet published by the Social Market Foundation think-tank. It will say that "to regard entry into the euro as somehow a betrayal of our national identity, as the Tories do, is ludicrous". Mr Wills will add: "The Germans do not regard their membership of the euro as a betrayal of their national identity, notwithstanding the fact the Deutschmark was such a potent symbol of their national resurrection after 1945. Neither do the French, the Italians, the Spanish or any other members of the euro. And nor should we. Our identity resides in our character and our values and in our institutions ... It may or may not be in our economic interest to join the euro but that is another matter."

The minister will claim there is no automatic link between consenting to EU institutions and diluting national identity. "Does anyone believe the French or the Germans or the Italians or the Spanish sign up because they expect their own, cherished national identity will be obliterated by Brussels? Or because they believe their national identity will be supported and enhanced by the benefits they believe Europe will bring them?"

Mr Wills' claim will anger Eurosceptics, who insist giving up the pound would mean a loss of national identity and sovereignty because, for example, Britain would lose its right to set its own interest rates. His comments are important because he is close to Mr Brown, who is believed to have successfully demanded Mr Wills' reinstatement to the Government when Mr Blair dropped him in June.

There was further confusion yesterday. Keith Vaz, the former minister for Europe, said there was likely to be a "strong campaign" to put off a referendum until after the next general election. But George Foulkes, another former minister and a member of the Britain in Europe campaign, who has discussed the euro with Mr Blair, said: "I am absolutely certain it is going to be next year and I think the most likely timing is October."

In his pamphlet, The Battle for Britain, Mr Wills will argue that the time has passed when national identity in Europe had to be overridden to prevent another war. "Today, the EU can only develop on the basis of recognising the continuing strength of national identity and allegiances. Recent referendums on the euro in Denmark and on the Nice Treaty in Ireland demonstrate the perils of ignoring this."

He will call for Labour to articulate "a new language" on what it means to be British so it can take on the "right-wing demagogic populism" of the British National Party and parties that made advances in recent elections in Europe.