Blair would say 'no' to euro today

British Prime Minister Tony Blair would not join the euro 'today'

SEOUL, South Korea -- British Prime Minister Tony Blair has added pressure onto the struggling euro, after telling reporters in Seoul that he would say no to joining the euro "today."

While Blair's officials said the off-the-cuff remarks were entirely in line with government policy of waiting until Britain's economic conditions were right before recommending entry, the comment added to euro woes.

In a question-and-answer session on the euro en route to an Asia-Europe summit in Seoul, Blair said: "Public opinion will make up its own mind on the facts in the end. You come along to me with an opinion poll and say do you want to join the euro today -- I would say 'no'."

Later, asked to clarify his remarks and say whether they amounted to a vote of no confidence in Europe's single currency, Blair said: "Absolutely not. It isn't right for Britain to join the euro at the present time, as we have constantly said, because the economic conditions are not right."

The already weak euro came under pressure against the pound on Thursday. At 1340 GMT, it traded around $0.8417, within one cent of record lows set on Wednesday, and at just over 58 pence.

Markets were already jittery ahead of a European Central Bank news conference, where President Wim Duisenberg was questioned over recent remarks which hit the currency.

Blair's official spokesman brushed aside his remarks as nothing new. "There's nothing remotely new or newsworthy in what he said."

Blair sought to reassure Asian businessmen in Seoul that Britain's policy on assessing the conditions for joining the euro remained on track.

Earlier, he told an audience of mainly South Korean business leaders: "I know how important the issue of the single currency is for foreign investors. That is one of the reasons we have resisted the short-term political calls to rule out British membership of the single currency."

He reiterated the government policy that Britain remained in favour, provided its five economic tests were met and that joining was backed in a referendum.

Blair has restated he will assess whether the tests are met early in the next parliament. An election is expected next year.

Reuters contributed to this report.

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