Clear signal that euro vote will be called before election

Tony Blair gave a firm indication yesterday that he was ready to call a referendum on the euro before the next election, declaring it was time for the Government to have the courage of its convictions.

The Prime Minister said a conflict with Iraq would not delay a euro referendum, and said he now intended to "push forward" the debate. Asked if he had ruled out a vote on joining the euro in this parliament, the Prime Minister replied, "certainly not". But he denied he had "pencilled in" a date for a euro referendum in his diary. "This is the time for us to have the courage of our convictions and push forward," he said. "There's no point in being in government otherwise."

Labour also launched a campaign yesterday to persuade its members to campaign for a "yes" vote in a future euro referendum. The Labour Movement for Europe plans to send a leaflet to each party member arguing that failing to join the euro would cost jobs and investment in schools and hospitals.

"The decision on whether or not to join the euro will be taken very soon," it says. "Even before the economic tests are met, we in the Labour movement must be ready for the campaign that may come. The referendum is not going to win itself," says the leaflet, jointly produced with the campaign group Britain in Europe.

Peter Hain, the minister for Europe, argued that the referendum on the single currency will be "a vital campaign" for every party member and supporter. Labour activists should be prepared to fight the Tories and Eurosceptic newspapers "tooth and nail", he said.

The former Labour leader Neil Kinnock, now vice-president of the European Commission, attacked trade unions campaigning against the euro as dinosaurs.