New Labour tried to control the European debate by accusing, alongside the Lib Dems, the Tories of being a party of right-wing extremists. The Conservative call to lock up asylum seekers, spearheaded by shadow home secretary Anne Widdecombe, in "reception centres", or "detention centres" as others put it, appeared to frame the Tory party as such in the minds of most of the electorate. Therefore on election night scores of successful Labour candidates, including Tory defector Shaun Woodward, proclaimed New Labour as the new all-inclusive "one nation" party of the United Kingdom. In a bid to keep out the Tories, the electorate backed the Lib Dems by presenting themselves as the party of "honesty." The Lib Dems also accused William Hague of sparking off the riots in Oldham, "by playing the race card."

The dent of voter apathy, and the eventual resignation of William Hague, wasn't the only shock of the campaign. The British National Party (BNP) won 16% of the vote in Oldham following racial disturbances in the town, its largest result in a general election. Yet the biggest surprise to most people, particularly Conservatives, was Tony Blair's ability to secure such a large majority of 175 seats, against a poor record - disclosed by BBC Panorama two days before polling day - of broken promises from the 1997 election covering Labour's key electoral issues of health, education, the police, transport and the state of other public services. In his first four years of power Tony Blair, in comparison to 18 years of Conservative rule, faced more scandals than ever. In 1997 the Tories were punished its troubles, but in 2001 New Labour was forgiven to the surprise of many.

Other than Mr. Hague, and the Conservatives in general, the main casualty of Tony Blair's victory has been the pound. It has fell to a 15 year low against the US dollar ($1.30), as speculators awaited the announcement of an early referendum on Britain's entry into the euro. The pound continues to be troubled by the general election result, and has since fallen a cent further against the US dollar. This is in spite of the Chancellor of the Exchequer Gordon Brown's assurances that there will not be an early referendum, and that his five economic tests must be met before a government recommendation for British entry can be made to the electorate. Gordon Brown is resisting calls by Britain in Europe for the Government to stop "pussy-footing" on the issue and to come out fighting in favour of the euro.

EU Commission president Romano Prodi undermined Tony Blair's campaign during the general election though, by calling for greater European integration and arguing for increasing the powers of the EU within Brussels. New Labour throughout the general election had tried to dismiss Conservative claims that too much power had been given to Brussels already, and that New Labour would preside over an increase in the EU's powers over individual member states' elected parliaments. The Irish have also rejected the Treaty of Nice, which surprised even the most enthusiastic of europhiles because Eire has benefited the most from the European Union, and is generally considered to be the most enthusiastic EU member state.

It's therefore no surprise that Tony Blair, in his latest cabinet reshuffle, has demoted or sacked the most vocal of euro supporters from the previous administration. Casualties include the former Trade and Industry Secretary Stephen Byers and the former foreign secretary Robin Cook. Jack Straw has replaced Robin Cook in the foreign office, and the appointment is very much welcomed by the Treasury. Tony Blair appears to be purging the Government of any potential sources of scandal or controversy. The former Europe minister Keith Vaz, even though he has been taken ill since the revelations of the Hinduja Affair, is but one other casualty aside the re-branding of a number of ministries and particularly the abolition of the Ministry of Agriculture, Fisheries and Food (MAFF).

A spokesman from the Treasury spoke warmly about the appointment of Jack Straw in the Daily Telegraph on 10th June 2001: "Jack Straw is well known for his support for the government's current policy on euro membership." Stephen Byers has moved sideways to the Department of Transport, while Robin Cook is now the leader of the House of Commons. It is perhaps hoped that there will be no more cabinet leaks, and that the euro will be laid to rest until Gordon Brown decides to call a referendum.

Tony Blair may be trying to appease all sections of British society, or show that he means business in historic second successive term of office, but he still has a lot to prove. His first goal must surely be to meet the promises he first made in 1997, before he can achieve those he aspires too in his new administration. Meanwhile the euro remains "low priority" for the new government.