Business

Ford Motor Company said the chancellor's statement indicated Britain was on its way towards joining the euro."We are extremely pleased. This is everything we wanted to hear," said Roger Putnam, chairman of Ford UK.

The Institute of Directors was unhappy that euro entry would be reassessed so early.

"The chancellor should, therefore, rule out reassessing Britain's economic readiness for euro membership for the lifetime of this parliament," said Ruth Lea, head of the IoD's policy unit. "This would provide much-needed stability for both the financial markets and business."

The Confederation of British Industry director general, Digby Jones, said he welcomed the "rigour" of the chancellor's assessment.

"We are pleased the government is doing nothing to harm the hard-won economic stability that has made the UK the most successful economy in Europe," he said.

David Frost, director general of the British Chambers of Commerce, welcomed the chancellor's conclusion that Britain is not yet ready to join. "This confirms the views expressed by our members in our recent survey. Our view is 'not no, but not now' and we are glad that the government shares our analysis."

Unions

Bill Morris, general secretary of the Transport and General Workers' Union, said the chancellor should have ruled out euro entry for the life of this parliament.

"We cannot continually revisit the tests and keep the door propped open in this parliament. It does not provide business with the certainty it needs to make investment decisions, and does not reassure British workers that their jobs are secure," he said.

Roger Lyons, general secretary of Amicus, said Gordon Brown's speech was reassuring: "We welcome any progress on the long march to full membership of the euro," he said.