The government doesn't lack the political will to take Britain in to the euro if the five tests are met, the trade and industry secretary has said.

Speaking in Madrid on Tuesday, Patricia Hewitt said that the government was intent on winning over a sceptical public to the pro-European cause.

"If the economic will is there, the political will shall be there as well," she promised.

"Because today we as a government begin the next stage of our campaign on a pro-Europe platform to make the case for Britain in Europe and the principled case for the euro."

Chancellor Gordon Brown said on Monday that the five tests had not been met, but said they could be re-examined next year.

Despite the negative decision, Hewitt said the euro announcement had "strengthened our commitment to and support for the principle of joining the euro - showing the gains to Britain are considerable".

She said there had been "significant progress in achieving cyclical convergence".

And the government would work towards ensuring the economy was in a position to join the single currency, Hewitt added.

"It is this resolve to implement far reaching reforms in our economy that is the best statement of our intent," she said.

"We believe that the implementation of these reforms would help us meet the five tests, as well as being right for Britain's economic interest. And we believe there is a realistic prospect of making significant progress over the next year.

"And it is for this reason that British manufacturers and inward investors have welcomed the government's position which, they are clear, puts us on a path to membership at the right time, at the right rate and on the right terms."

But Hewitt added that just as Britain was prepared to reform, the European Union should be too.