Labour will announce before the New Year whether or not it believes "Britain" should enter the single European currency on Jan 1, 1999.

They are likely to say they do not want to join immediately, and they'll say this just before Labour assumes the presidency of the European Union.

A London source said "The decision will be announced before the end of this year, we want to play a positive role in the planning of monetary union during our presidency." In the unlikely event of a decision in favour, a final policy would be subject to a vote in Parliament and a referendum."

The referendum sounds good, however, as Scotland will NOT be independent of London, the xenophobes South of the border are likely to win the day and put another obstacle in the way of Scotlands move towards direct European membership.