Reid says joining the euro is matter of 'when' not 'whether'

Cabinet divisions over the euro were underlined yesterday when John Reid, the Leader of the Commons, declared it was not a question of "whether" but "when" Britain should join.

Dr Reid joined Helen Liddell, the Scottish Secretary, in stressing that the Cabinet, rather than the Treasury, would "ultimately" decide when to hold a referendum on the currency.

Dr Reid pointed out that Tony Blair as Prime Minister was "the First Lord of the Treasury", while Mrs Liddell said the euro decision "cannot simply be delivered to us by the Chancellor, like the Budget".

Gordon Brown was forced on to the defensive as he stressed that he would back euro membership if conditions were right and that ruling it out on grounds of dogma was "unacceptable". Mr Brown is under intense pressure from Mr Blair and other euro supporters to signal that a negative assessment could be re-evaluated, and a referendum held, before the end of this Parliament.

The row over the issue was further highlighted when the Chancellor revealed his assessment of the five economic tests would not be made until the latest possible moment.

There has been speculation that the Treasury could make its announcement later this month, but Mr Brown said he would make a Commons statement "in the first week in June".

Sources suggested that the statement would run close to the 7 June deadline set by Mr Blair because he and the Chancellor were still not agreed on how to present the expected "not yet" verdict.

Dr Reid, who pointed out that half of Britain's trade and three million jobs were dependent on Europe, emphasised that the announcement on the five tests would only be a "short-term" conclusion. He told ITV's Jonathan Dimbleby programme: "When that decision is taken, it will be announced and it will be a decision for the time being. It is a decision for now, it doesn't bind us for any specified period in advance because the decision is not whether we will join the euro but it is when we will join the euro."

When asked whether Mr Brown would simply present the Treasury assessment as a fait accompli to his colleagues, Dr Reid replied: "When he [Brown] and the Treasury give an estimate on these things of course it is extremely important but ultimately these decisions are taken by the Cabinet under the leadership of the First Lord of the Treasury, who is the Prime Minister ... the Cabinet will discuss these matters collectively."

Mrs Liddell told The Sunday Telegraph that the impact of staying out of the eurozone on Scotland's economy should be included in deliberations.