Italy backs British entry to euro club

Tony Blair could win the battle for British entry to the elite club of EU countries planning the single European currency, in spite of the rebuff this week for Gordon Brown.

The Prime Minister will launch Britain's presidency at Waterloo International station today with renewed hopes of Britain gaining entry to the euro- x committee which will have control over the planning for the single currency.

The Independent has learned that Romano Prodi, the Italian Prime Minister, told Tony Blair at a private meeting in Downing Street on Wednesday that Italy will support Britain's bid for membership of the elite club, which includes Italy, France and Germany, at the Luxembourg summit.

The offer made by Mr Prodi, who will be at today's ceremony, has raised hopes in Whitehall that Mr Blair will be able to pull off a deal at the summit next week.

France and Germany are opposed to British membership, but Mr Prodi told the Prime Minister that he believed it was possible to reach a deal at Luxembourg with Britain becoming a non-voting member with "observer" status. Downing Street said the meeting was routine, but it could prove to be highly significant in the build-up to the summit.

Italy's support will be seen as part of a long-term strategy to protect its position in Europe by forging alliances with Britain.

Britain is anxious to be included in the committee to retain its influence over the creation of the euro, and in making sure the terms for entry are observed by other states.