Question: The three priorities of the Swedish presidency are the three E's - enlargement, employment and the environment. Looking at enlargement, what needs to be resolved before enlargement can become a reality?

Keith Vaz: There is a set of criteria which all countries who have applied to join the European Union have to fulfil, and as far as we are concerned we remain attracted to enlargement, we want to make sure that these countries join as quickly as possible.

Question: Do you see any problems with budget implications of enlargement such as the agricultural subsidies for example?

Keith Vaz: No, I think that agriculture is obviously going to be one of the important issues, there is a chapter on agriculture, and they will be discussed in the way in which it is considered most appropriate.

Question: Looking at the employment implications of enlargement, there is a moratorium on the free movement of the labour force, but does enlargement pose a long term problem with economic migrants moving to wealthy EU member states?

Keith Vaz: It has happened in the past. There is a view that because there is a disparity in economic progress that once you get new countries coming in there will be a lot of people coming to live in the wealthier countries. This does not apply and there is no evidence to suggest that this has happened before. Certainly before Poland and before Portugal and Spain were set to join the European Union that is what they suggested would happen, but it didn't. And in fact what we have seen is that some people have come from our country to go to other countries in the European Union.

Question: So it can actually work the other way?

Keith Vaz: Indeed it can.

Question: How concerned are you by the Swedish presidency's emphasis on employee rights, such as worker consultation?

Keith Vaz: We don't have a problem with any of the themes of the Swedish presidency. We believe it is important that workers should be consulted in a proper and appropriate way. We also believe that the businesses themselves and employers have a right to be consulted too on proposals and we will study all these measures and proposals very carefully before coming to a decision.

Question: There's reports that the Swedish government want to have greater workers' consultation measures than the British government and are looking to raise the issue of workers' consultation in the EU employment and social affairs Council of Ministers meeting in March. What would be your message to them for that meeting, in terms of what the British government would accept?

Keith Vaz: Well we will study the proposals. We will consult with our employer and our employee organisations and we will take a decision which is in the best interest of British industry.

Question: The European Council in Lisbon 2000 set the new strategic goal for the EU to become the world's most dynamic and knowledge based economy within the next ten years. What do you think are the biggest hurdles to reaching that goal?

Keith Vaz: The biggest hurdle is a lack of confidence on the part of member states that they can achieve the changes that are required. What was significant about the Lisbon process and I am delighted Tony Blair in particular and this country took a lead on economic reform, the difference between Lisbon and any other council we have had before is that we benchmarked what we hoped to do to our economies. If you look at what has happened in America over the last 10 years, 10 million jobs have been created by the American economy. If you compare that to the economy of the EU only a million new jobs have been created. So we certainly have to look at ways in which we can move forward.

Question: Looking at the environmental implication of enlargement, how confident are you that candidate countries will be able to incorporate and apply the extensive EU environment legislation - on air quality, waste management, control of industrial pollutants for example?

Keith Vaz: There is a desire to make sure we have a friendly environment and that when we look at how economic progress can be achieved it is within those environmental confines. I am pretty convinced that we will be able to do that. The environment is one of the themes of the Swedish presidency. There is no reason why we can't move forward to make sure that we get those decisions that are in our best interests.

Question: Would you be flexible about giving these candidate countries more of a lead in time in order to be able to adjust to these environmental measures ?

Question: The Times reports that pro-Europe ministers and trade unions have agreed to remain silent on the single currency until after the next election. It's been called Operation Flyover, have you heard of Operation Flyover?

Keith Vaz: No I haven't, but it's always good to read The Times and find out what is supposed to be happening. I think the position is quite clear, in principle we are in favour of joining the euro, in practice we shall do so when the economic conditions are met. We will assess those tests early in the next parliament and then Cabinet, Parliament and the British people will decide. We remain the only political party in this country that is prepared to give the people a vote on this.

Question: So you'll be happy to make your position on the euro versus the Conservatives position on the euro a main feature of the election campaign ?

Keith Vaz: I'm only the Minister for Europe, it's not for me to decide what will be the main features of the election campaign. If Europe is raised we will state a position that we've had for the last three years and that is a position we're not going to change. It's a better position than the Conservatives, as the Conservatives don't want to give the British people the right to choose, they are going to make the decision for them.

Question: What's your message to the press in their reporting of Europe and the euro during the election ?

Keith Vaz: Well I think the reporting of the press has got better post-Nice and that's because they are aware that when Tony Blair went to Nice with a set of objectives, those objectives were met. And similarly, when Robin Cook is involved in bilateral relationships with other countries, it's for the benefit of our country and I think they recognised what a victory we had at Nice, which brought more power for Britain and placed Britain in a position where we can be a stronger country in a wider Europe.

So I think press reporting has got marginally better, but I'm not holding my breath.

Question: What effect has there been from Ministers like yourself and Robin Cook coming forward to promote Europe more aggressively and to be quick to correct inaccurate reporting ?

Keith Vaz: We've done this in the past but I think we've done this better than we had in the past. With the website we have established where there is a myth we deal with those myths immediately. It's important that if there are mistakes we correct them.

Last week the Daily Mail reported that there was going to be a signing ceremony for the Charter of Rights in Biarritz that weekend. We got on to them immediately, we wrote a letter, we put matters straight. I think all this is very important and I think it's in people's best interests that they get the correct information.

Question: How big an issue do you think Europe will become at the election ?

Keith Vaz: I'm sure it will be an issue but the election will be about the Government's record over the last four or five years. Europe is part of that. We've got a success story to report on Europe.

Question: Which sectors of society do you think are the biggest opponents of the euro ?

Keith Vaz: None.

Question: In the long term, what will be the effects on the British economy if we stay outside the euro ?

Keith Vaz: Well I think you need to ask British industry that. It's not whether we go in or stay out it's what's best for Britain. We have made it clear that it's not right to join now becuase it's not in our interests to do so.

Question: There are five economic tests which will define whether you put the issue of the euro to a referndum but do you think there are political and constitutional issues ?

Keith Vaz: As the Prime Minister has said, the five economic tests have got to be seen in the context of what is going to be a political decision. Of course those economic tests are important but in the end the British people will be making a decision based on those tests within the context of the political scenario at the time.

Question: What do you think are these political and constitutional considerations to be made before making a decision about the euro ?

Keith Vaz: Well I think that what we need to do at the time of the campaign, whenever that is, if we have a campaign, if the tests are met and the Cabinet decides we should be taking this matter forward, we will have to put those matters to the British people. As they have done in previous referendums, they will make that political decision.

Question: Do you think we've had a comprehensive enough debate here in the UK about sovereignty - be it loss of sovereignty or pooling of sovereignty ?

Keith Vaz: No, and that's why the debate will go on. Last week I sat before the European Scrutiny Committee and these questions were raised. Sovereignty is not something in a bottle that you can open up and pour out whenever you want. It is an important issue which needs to be debated and discussed. It is uppermost in our minds when we make decisions.

Question: What sort of political debate do you expect there to be on Europe and the euro - after the election ?

Keith Vaz: A robust debate.

Question: Do you think the British public right now are in favour of the euro ?

Keith Vaz: I can only tell you what the British public tell me when I go round the country. As far as I'm concerned we are doing the best we can to tell people about the benefits of being members of the European Union. The euro is raised rarely with me in these discussions. It will be raised more when we get to a position where we assess the economic tests.

Question: When the euro is raised in these discussions - what do the people say to you ?

Keith Vaz: They want more information.