THE German minister for Europe, Mr Gunther Verheugen, inflamed Tory Euro-sceptics yesterday as he predicted the launch of the single currency was merely the start of the process of European political integration.
As the politicians traded arguments, Britain's money brokers were working flat out to ensure the financial markets were ready to trade from Monday in the new currency.
Mr Verheugen, speaking on BBC Radio, sparked the inevitable controversy when he suggested that the single currency would not be the ''final step''.
He made no secret of his vision of a modern Europe extending far beyond a single European currency but he conceded the conditions for a ''successful and stable Europe have still to be guaranteed''.
During his interview, he discussed the scope for co-
ordinating tax policy across Europe on, for example, corporation and energy taxes. He said: ''Normally, a single currency is the final step in a process of political integration. This time, the single currency isn't the final step but the beginning. Inevitably it will happen. We can't live in a single market and with a single currency without having co-ordination as far as the conditions for a single market and a single currency are concerned.''
His comments were immediately seized upon by the fanatically Euro-sceptic Shadow Trade Secretary John Redwood as a vindication of Tory fears. Mr Redwood said: ''This is the beginning of the process towards a single government and taxation, towards one economic policy and common taxation. That's not right for Britain.''
However, Government spokesmen presented a relaxed response, suggesting the minister had not expressed new sentiments. A Foreign Office spokesman said: ''We have always said we don't believe political union will flow from economic union.''
Despite the decision to remain outside euro-land, Britain's financial community has been working at full tilt to prepare itself for the new regime. New Year holidays were cancelled for about 50,000 workers in the City who are working frantically to convert their computer systems by Monday morning when financial markets open and trading in the currency begins. Shares in leading European companies, Government bonds, and sophisticated financial instruments will be quoted in euros and many British firms will be invoicing in euros.
A spokesman for the investment bank Merrill Lynch, whose 400 staff will work throughout the weekend, said: ''We will have people here throughout the three days working in shifts.''
Before the launch of the euro, Chancellor Gordon Brown let it be known he would not be in Brussels for the ceremony. His absence nevertheless symbolised the British position. Now that 11 states have adopted the euro, Britain, when and if it joins, will be regarded as a ''Johnnie come lately''.
qIrish Prime Minister Bertie Ahern said yesterday that Britain's absence from European Monetary Union was a key concern for his government after Ireland's adoption of the euro currency.
Mr Ahern said: ''I look forward to the day when the British people make a decision and the British Government join, because that would remove the most difficult obstacle for us.''
City alert Page 20
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