Joining the euro 'best for Britain', says Hain

Peter Hain is to use his platform as Secretary of State for Wales to push for Britain to join the euro to safeguard crucial overseas investment in manufacturing industry in Wales.

In an interview with The Independent, the former minister for Europe said Britain was being denied foreign investment because it was outside the single currency. Joining the euro would be "best for Britain''.

Mr Hain and Patricia Hewitt, Trade and Industry Secretary, are among ministers worried by figures showing Britain's share of investment by non-EU countries has fallen from 52 to 24 per cent since the euro's launch in 1999. Mr Hain said: "Inward investment is crucial for Wales. It has a disproportionately large share per head of population from the US, Japan and Europe. Thirty per cent of its industry is manufacturing, compared to a UK average of 20 per cent.

"The figures are starting to speak for themselves and this is why Gordon Brown's assesssment of this aspect and the rest of the economic tests are so critical."

Mr Hain said it would be hard to find two more passionate advocates of the euro than Denis MacShane, his successor as Europe minister, and Bill Rammell, who succeeded Mr MacShane as Foreign Office minister.

"They have been long-standing enthusiasts. I think the signal is pretty transparent," he said.