The future of the European Union could lead to a showdown between the British and French governments, after French minister for Europe, Pierre Moscovici, called for a "profoundly federal" EU.

The year-long convention on the future of the EU begins today.

Germany's finance minister, Hans Eichel, predicted yesterday that Britain would join the European single currency "in the not too distant future".

His comments came as Margaret Beckett, once considered a Eurosceptic, gave a speech to the Britain in Europe campaign highlighting the importance of the currency to the farming industry.