Gordon Brown finally delivered his assessment of the government's five economic tests for euro membership in the House of Commons today.

In his speech, Mr Brown confirmed that four of the five tests had not been met.

The main failures were the two tests on convergence and flexibility, and so the tests on investment and jobs could not be passed as 'clear and unambiguous'. Only the test on how the euro would affect financial services was in his view passed, as he was confident the City would prosper in or out of the eurozone.

Gordon Brown's announcement effectively put a referendum on the issue on hold pending a reassessment of progress on reform towards meeting the failed tests in the Budget next April.

However, in a face-saving move to leave the door open for a possible referendum next year, Mr Brown announced that a Referendum Bill would be put before Parliament in the Autumn.

But the reforms he announced as necessary to meet the tests on convergence and flexibility were seen as too long term for a referendum before the next election to be likely. Some, such as further reform of labour market flexibility in the eurozone, are not even in Gordon Brown's gift.

Reacting to today's statement, Stuart Coster, Campaign Manager for the Democracy Movement said:

"With close to five million unemployed in Germany now, the inherent contradictions in the euro system are becoming clearer - diverse economies have different needs. Public opinion will not shift while people see the eurozone in economic difficulty.

"The time can never be right to give up flexible, democratic control of the economy."

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For more information, contact Marc Glendening or Stuart Coster on 020 7610 0865
E-mail: coster@democracymovement.org.uk

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