SECRET PLOT TO JOIN EURO

Downing Street swiftly dismissed the statement, insisting that Government policy on remaining outside the euro “has not changed”.

But senior Tories and anti-EU campaigners reacted angrily, saying the remarks showed contempt for the wishes of voters.

Shadow Foreign Secretary William Hague said: “It is extraordinary that certain politicians are whispering to the EU Commission about joining the euro behind the British people’s backs. Keeping the pound is vital for Britain’s economic future.

“We need interest rates that are right for Britain, not the rest of Europe. There are no circumstances in which the next Conservative government will propose joining the euro.

“If Labour ministers still want to get Britain into the euro they should say so. We will be putting questions to the Government to find out what conversations have been going on.”

A recent Daily Express poll found that 98 per cent of the electorate would demand a referendum before Britain joined the euro and the same number would oppose signing away the pound.

There were also concerns  about Britain joining the euro after a record dive in the value of sterling yesterday. The pound has slumped from buying around 1.36 euros to 1.17 this year.

Lorraine Mullally, of the Euro-sceptic think-tank Open Europe, said: “There is nothing to suggest we’d be any better off in the euro. In fact, things would probably be even worse.

“Now is not the time to start giving up any of our independence to a single currency that has yet to prove its worth.

“If the last few months have taught us anything, it’s that we need as much flexibility and as many tools as we can get.”

In his interview, Mr Barroso suggested  Britain was “closer than ever before” to joining the euro, adding that the economic crisis had boosted support among top levels at Westminster and Whitehall.

Suspicions were immediately focused on Lord Mandelson, given his close links with Mr Barroso. He was trade commissioner in Brussels until his return to the Cabinet in the autumn.

Only last weekend Lord Mandelson told a Labour rally: “Our aim, our goal, should be to enter the single currency.”