PM ends reshuffle with jobs for euro backers

Tony Blair delighted pro-Europeans yesterday by promoting two prominent supporters of euro membership when he completed the ministerial reshuffle sparked by the resignation of Estelle Morris.

In a sign that the Prime Minister still hopes to call a single currency referendum before the next general election, Denis MacShane, a junior Foreign Office minister, was appointed minister for Europe, the most senior post outside the Cabinet.

Mr MacShane's job went to Bill Rammell, a Labour whip and strong advocate of the euro. The changes mean that three pro-euro ministers won promotion in the reshuffle. Peter Hain, previously minister for Europe, was appointed Secretary of State for Wales with a seat in the Cabinet.

Mr MacShane, the MP for Rotherham, is an ardent pro-European who previously worked in Geneva as policy director of the International Metal Workers' Federation and was director of the European Policy Institute from 1992 to 1994. A former BBC producer, he is a former president of the National Union of Journalists.

The Tories suggested Mr Blair had taken a risk by appointing such an outspoken MP as minister for Europe. They recalled that Mr MacShane had described President George Bush's regime as a "reactionary right-wing administration" and attacked the Venezuelan President, Hugo Chavez, as a "ranting populist demagogue" when he was ousted in a coup in April, only to backtrack when he regained power two days later.

Yesterday Mr MacShane chose his words carefully, and avoided mentioning the euro at a photocall at the Foreign Office. "I'm delighted," he said. "It is a dream job ­ the best job for me in government.

"My priority is very simple and that is to represent Britain in Europe. The job of the minister for Europe is to sell Britain 24 hours a day to the rest of Europe ­ our interests, our policies, our ideas.That is what I will be starting on with real vigour in the next weeks and months."

George Eustice, director of the "no" campaign on the single currency, said Mr MacShane had "long been obsessed by the euro" but insisted the decision about whether to hold a referendum would be dominated by Mr Blair and Gordon Brown, and the rest of the Cabinet would have very little influence.

The pro-single currency Britain in Europe group welcomed Mr MacShane's appointment, saying he was a "long-standing supporter" of the organisation.A spokesman added that the timing of a referendum on the euro would depend on the Treasury's assessment of the five economic tests.

Mr Rammell, MP for Harlow, takes over Mr MacShane's Foreign Office brief, which includes Latin America and China.

He is suceeded in the Whips Office by Gillian Merron, the MP for Lincoln.An official with the public service union Unison before entering the Commons in 1997, she has served as parliamentary aide to three ministers, including John Reid, the former Northern Ireland secretary who became Labour Party chairman in the reshuffle.