The Tory leader mocked Prime Minister Tony Blair's denial of the EU's goals to assume such a status. Instead, perhaps contrary to the President of the European Commission Romano Prodi's call for a "government of Europe", Mr. Blair called for a "European Superpower." Ironically Mr. Prodi has countered Eurosceptics' fears of an encroaching Superstate. In The Daily Telegraph he said: "The EU brings sovereign nations and peoples closer together, giving them a common strength, greater than any one of them could possess alone. It is not about abolishing nationhood."

Mr. Hague said the Government was not being straight about its European agenda. He cited examples of Tony Blair's about-turns on keeping the pound, and the Prime Minister's previous opposition to the idea of a single European army. The Government, he argued, is now clearly embracing the idea of giving up Britain's right to veto upon certain issues.

Indeed Foreign Secretary Robin Cook has suggested, with the European Summit in Nice only a fortnight away, that giving up the right to veto EU legislation could be "in the national interest." He also argued that giving the increased usage of Qualified Majority Voting "has helped Britain." The Times on Tuesday 14th November suggested, following Tony Blair's Mansion House speech, that Cook was at war with the Eurosceptic press. He said The Financial Times, a pro-euro newspaper, was the only one he could count on for "balanced reporting."

The foreign secretary put the case for increasing Qualified Majority Voting (QMV). BBC News Online quoted him on November 17th 2000 as saying: "Directives on banking and insurance that helped the City were opposed by other countries, which would have blocked them if there had been a veto." Eurosceptics would, however, argue that this proves the Government is handing British sovereignty to Brussels on a silver platter.

Even so he stressed that Britain's veto should be kept concerning tax and social security. William Hague, nevertheless, pointed out on Jonathan Dimbleby, that many of Britain's rights to veto decisions made in Brussels had gone on social policy. Mr. Hague cited Tony Blair's signing of the Amsterdam Treaty, which increased the usage of QMV and reduced the right of member states to veto EU proposals and legislation.

Dispelling what he calls "Euro-myths," Mr. Cook argued that the press should be putting forward a more "positive storyline" on the European Union. At the same time the Prime Minister outlined his view that it is possible to be pro-European, and a patriotic about being British. Yet with the euro still lacking strength and stability, the Chancellor of the Exchequer Gordon Brown has ruled out joining the euro for at least two years on economic grounds. A newly leaked Cabinet document has also re-ignited the Cabinet feud over Europe, and particularly its euro policy.

The Northern Ireland Secretary Peter Mandelson, although ardently pro-European Union, has sought to subdue divisions over the euro. This is inspite of his comments that sparked a new rift at a private dinner. According to BBC News Online, he "described pro-Europeans as having made strategic errors." Mr. Mandelson believes that the Cabinet should be more vociferous in supporting the case for the euro. Contrary to previous statements made by the Cabinet, he argued that the political case should be put forward and not just the economic one.

Prime Minister Tony Blair has contradictorily declared that he will defend Britain's veto. The Prime Minister said it was priority "First, second and third." Political commentators have suggested that the Government's current posturing on the EU and the euro, is more down to the forecast of a General Election next year than anything else. Recent opinion polls revealed that a consistent 75% of the participating electorate rejected the single currency. The Danish referendum itself, even though the Government has denied its impact, has without doubt affected the Cabinet's confidence in backing the single currency.

The beleaguered euro fell too, when the European Central Bank President Wim Duisenberg commented openly about intervention at a recent press conference in Paris. The Government therefore knows that the euro remains unpopular with the vast majority of the British public. The Conservative Party is determined to make the single currency into a major General Election issue. However, Peter Mandelson rejected the suggestion that "the next election will be fought on the single currency."

The Government's case for supporting the euro can't have been helped by further recent revelations. It is estimated that the switchover to the single currency would cost Britain an estimated £32 billion. Many therefore believe that scrapping the pound Sterling is too high a cost to bear upon the British economy.

E-AG: The Foreign and Security Policy Implications of the Euro.

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