The prime minister's focus on Iraq could see any government campaign to promote the euro pushed back into next year, it has been reported.

With the prospects of military action in the Middle East dominating Tony Blair's agenda, the Times reports that the chancellor's analysis of his famous five economic tests could be delayed as the technical analysis becomes increasingly detailed.

Supporters of the euro had hoped the PM would begin a promotional push for membership this autumn, building up to a referendum next spring.

But with any military campaign in Iraq set to take place during the British winter those hopes could be dashed.

Gordon Brown has already announced that he will investigate the impact of the euro on prices in countries that have already adopted it, leading to suggestions that he is intent on putting up new barriers to British membership of the single currency.

City analysts believe it will be months before the analysis has been completed, though the government says it is sticking to its previously announced timetable of announcing whether or not the UK meets its five economic tests by June 2003.

And the unions could yet deal another blow to the pro-euro campaign, with TGWU general secretary Bill Morris set to lead a campaign against a TUC statement urging the government to bring forward its assessment of the tests.

Morris also has the support of Dave Prentis, general secretary of Britain's largest union, Unison. The new Amicus leader, Derek Simpson, has already questioned his union's cash donations to the pro-euro Britain in Europe organisation.

The TUC's traditional support for the euro could be called in to question amid concerns that the strict requirements of the European Union's growth and stability pact could see public spending levels slashed.

Speaking on Tuesday, Europe minister Peter Hain dismissed the claims.

"It is a nonsense to paint a Labour government as a bunch of neo-liberal deregulators when we are pursuing a strategy of which the Left in Europe should be proud."