Chancellor Gordon Brown insisted last night that there would be "no short-cuts and no fudge" in the process of deciding whether Britain is ready to join the euro.

In his Mansion House speech in the City of London, Mr Brown emphasised that his famed five economic tests would remain pivotal to that assessment.

The "rigorous" approach taken to the tests so far would continue "at all times", Mr Brown stressed.

Following his announcement at the beginning of last week that the British economy had failed to pass all the tests, Mr Brown indicated to an audience of business and finance chiefs that the Treasury would not be swayed by political considerations, and would only recommend British membership of the European single currency if it had been rigorously demonstrated that the tests had been met.