The regions of the UK are set to play a key role in debating whether Britain should join the single currency.

Peter Hain, a keen supporter of the euro, said it was vital for Wales to prepare for membership.

"The chancellor has given a clear signal that, subject to achieving the necessary economic conditions and to the successful result of a referendum, we will be joining the European Monetary Union and it is vital that Wales is prepared for this major change," he said.

"We are on the road to Europe and I want Wales to be out in front."

Regional bodies involving politicians, unions, business leaders and other experts will be formed to lead the debate.

Northern Ireland secretary Paul Murphy said Ulster should also be "fully prepared" for euro membership.

"Northern Ireland is in a unique position, as the only part of the United Kingdom sharing a land border with the eurozone," Murphy added.

"We have special insights into the challenges which lie ahead that we can share with the rest of the UK, and we can learn too from the work already carried out across the country by the Treasury's standing committee on euro preparations."

But nationalists have warned that politics are being put before the interests of the country.

Elfyn Llwyd, Plaid Cymru parliamentary leader, described the five test as a "sham enforced to suit the government's political ambitions, and the profits of the City, without paying any concern to the effect of staying out of the euro on core industries and the peripheral regions".

"Plaid Cymru believes that a European Single Currency is the right option for Wales and that this further delay can only be a hindrance to Wales," he added.

And the SNP's Alex Salmond warned that the interests of Scotland were "being sacrificed" for the interests of the housing market in London and the South East.