Howard - pressure on Blair

The government should come clean on its intentions on the single currency, the Tories said on Sunday.

Speaking in the wake of Tony Blair's most pro-euro speech to date, the shadow foreign secretary said the time had come for the prime minister to "stop playing games" with voters.

Michael Howard said the government should put its money where its mouth is. "The government should stop playing games. If they want us to go into the euro let's have a referendum, let's have a campaign, let's get it over with," he said.

He argued that ministers should either go ahead with a euro poll or "concentrate on our public services".

Howard's intervention came amid increased speculation that the government is preparing for an early referendum on the single currency. Reports published last week suggested the government is preparing to hold the poll on the same day as the next general election.

The Europe minister, Peter Hain, said the predictions about the date of the referendum were misleading.

"I don't think you should speculate on the basis of a date that nobody has decided upon,'' he said. "You can't pick a date out of the air, whether it's the next general election or whether it's the local elections or whether its the Scottish parliamentary elections or the Welsh assembly elections. None of these dates are in prospect because we haven't made the economic assessment, that will be done by the chancellor within 18 months."

Blair is, however, said to be frustrated at the lack of progress on the euro.

Ministers believe that the launch of euro notes and coins in January will crystalise the issue in voters' minds. Blair is thought to believe that the introduction of the currency on the continent will reduce hostility towards British membership.

Since Iain Duncan Smith's election as Tory leader, the opposition has been keeping a low profile on the issue of the single currency.

However, a leading member of the shadow cabinet broke his silence on Sunday and rejected Duncan Smith's policy of outright opposition to the euro.

Damian Green, the shadow education secretary, said he could not back Duncan Smith's line. "I very very rarely say never and not on this issue,'' he told GMTV's Sunday Programme.

Whilst he admitted he would vote "No" if a referendum was held today, he said ruling out the single currency in principle was an error.

"I'm not sure, it's perfectly clear that that's Conservative Party view, that's the majority of Conservative Party view, there maybe others who take a different view who can opt out for the period of the referendum,'' said Green.