This year will be decision time for the euro 12 months after the single currency has been introduced on most of mainland Europe.

As 2003 begins the future is not rosy for pro-European campaigners enthusiastic about joining the eurozone.

Dark clouds on the global economic horizon may make a cautious British chancellor even more careful about the single currency following a sometimes bumpy ride in the eurozone during 2002.

High unemployment in Germany and inflationary price rises as traders used the changeover to new notes and coins to mark up goods, may tip the scales against a euro gamble at the polls - especially for a sceptical Gordon Brown.

His five economic tests are the hurdles that must be cleared in June this year if Britons are to get a referendum on the single currency in this parliament.

And a recent survey of top economists for the FT believe the Treasury's aim of reaching a "clear and unambiguous" economic assessment of the benefits of euro entry is impossible for what is an essentially political question.

A question that, according to the Sun, has already been answered.

According to the newspaper - which has legendary access to Downing Street - Tony Blair has ruled out a euro referendum this side of a general election.

The Tories have called on the government to either call the referendum or "stop playing games."

Speaking on the first anniversary of the currency's circulation in 12 European countries, the shadow chancellor, Michael Howard, argued that Britain was better off with the pound.

"One year, it is quite clear that Britain has been quite right to keep the pound. The UK's economy has very different needs to those of our European neighbours," he said.

"Labour continues to waste taxpayers money by telling business to prepare for the euro without telling us whether there will be a referendum.

"If Labour wants to take Britain into the euro, they should get on with it and hold a referendum. If not, they should stop playing games and concentrate instead on trying to improve the public services as they said they would."