TUC chief: angered ministers

Labour has insisted that the prime minister is "not ashamed at all" of working closely with right-wing European leaders who share his vision for the EU.

The claim came as John Monks accused Tony Blair of being "bloody stupid" in allying himself with Italy's right-wing government to block further EU rights for workers.

Launching a broadside against the prime minister, the TUC chief said that the consequences of Blair turning his back on workers "will be very serious".

He said that Blair's hopes of persuading British workers to back the euro would be damaged if there are no social benefits to workers.

Monks said that Blair - who has signed a joint communiqué with Silvio Berlusconi which effectively blocks further workers' rights - is increasingly being seen as a creature of the right in Europe and could pay a heavy price for this.

"We've got a serious difference of opinion with them," he said. "We will not find it easy to sell the euro to British workers if there is no social dimension in parallel to that."

Gordon Brown, attending the EU summit in Barcelona, said Monks' remarks would not divert the government from its "pro-competition, pro-enterprise agenda".

"This is the way forward for the British economy. It is the way forward that is creating more jobs and higher standards of living," he said.

"I hope Mr Monks will look at our European White Paper and find in it measures that promote competition and ensure there are higher standards in the workplace."

The TUC leader said it would be "very disappointing" if ministers back down on a commitment to tackle "two-tier" workforces where new employees get inferior pay and conditions packages.

His comments followed a leaked Cabinet Office memo which suggested that the government was preparing to renege on its commitments.

"I have been assured that this paper is not the government's position and that the deals will be honoured. I've got to take it as it stands and I believe them. The consequences of it not being delivered will be very serious."

The foreign secretary, Jack Straw, dismissed suggestions that Labour was eroding workers' rights. "There is a great deal on our agenda which is actually going to improve workers' rights," he said.

"We have created a lot of jobs in the UK. We have got a lower unemployment rate, almost than any other European country and better than any of the major European countries."

Monks, who describes himself as a "solid European-style social democrat", says the prime minister is effective at winning elections but calls for a greater coherence in policy.

"He is a phenomenal winner of elections, the most successful this century. I don't knock that," he says.

"I believe in workers' rights, welfare states, good public services allied to a lively market and that's what I want to see the prime minister and the British government more enthusiastically embrace."