"Ein Volk! Ein Reich! Ein Euro!"

At first glance, the grainy, black-and-white film really does look like a newsreel of Adolph Hitler shouting his approval of Europe's new single currency: "One people! One state! One euro." In fact, the Hitler character is a British comedian. And the anti-euro advertisement in which the ersatz fuehrer appears has sparked a storm of anger here.

Although it is likely to be a year or more before Prime Minister Tony Blair schedules a national referendum on adopting the euro, the question of whether or not Britain should join with the 12 European Union countries that already use it is arguably the nation's hottest political issue.

This summer's rapid appreciation of the euro against both the U.S. dollar and the British pound has sharpened the debate, with the pro-euro side arguing that the currency's increasing value reflects strong global acceptance of the euro as a competitor to the dollar.

Accordingly, the chief anti-euro interest group, which calls itself "the no campaign," launched its first screen advertising campaign Wednesday with a 90-second commercial to be shown in movie theaters all summer long. But the ad spawned a controversy that may well drown out its message about the currency.

Specifically aimed at young voters, the ad features cameo appearances by the pop star Bob Geldof and several British television celebrities. The British comedian Rik Mayall appears twice as Hitler, complete with mustache, giving the Nazi salute and shouting support for the euro. Those sequences set off the fireworks.

"Absolutely tasteless. Highly inappropriate," said Neville Nagler, director of the Board of Deputies of British Jews. "It is bound to cause offense to all those who experienced at first hand the evils of the Third Reich."

George Eustice, campaign director of "the no campaign," responded that "people really need to lighten up a bit," and added that he does not plan to cut the Hitler sequence from the ad.

But politicians and analysts here called the ad a clear blunder. "It can only boomerang," said Leon Brittan, who served in several cabinet posts under former Prime Minister Margaret Thatcher. "This tasteless ad" shows an element of "desperation" in the anti-euro camp, said.

For years, opinion polls here have shown that most British voters oppose joining the single currency. But the anti-euro campaigners may have cause for worry, because recent surveys show clear gains for the "yes" camp. The glitch-free roll-out in January of euro notes and coins and the broad acceptance of the currency across Western Europe have weakened opposition among the British public, analysts say. A national telephone poll Tuesday night by the Channel 4 network found that 52 percent of those surveyed would vote against the euro, and 39 percent would vote in favor. If that result is accurate, it suggests significant decay in the "no" position. Until the end of last year, surveys here routinely came out about 2-1 against the common currency.

For all the ads and arguments on the euro question, the most important determinant of the eventual referendum will probably be the position taken by Blair and his chancellor of the Exchequer, Gordon Brown. Several recent polls have shown a large percentage of "no" voters would be inclined to support the common currency if Blair and Brown recommended entry.

Blair has said repeatedly that he favors using the euro "in principle," but only if economic conditions are favorable. Brown, whose job is roughly equivalent to a U.S. Treasury secretary, has set five tests to determine whether to recommend euro entry. The five points concern whether euro membership would enhance different aspects of Britain's economy.

Blair has promised that his government will report on the five tests by June of 2003, but the Whitehall rumor mill suggests that this report will actually come months earlier.

[EuroTracer's comment: The five economic tests that Gordon Brown outlined in November 1997 are the following, according to an article by Julian Glover in The Guardian of 2000-09-29:

Test one Would joining economic and monetary union (Emu) create better conditions for firms making long-term decisions to invest in the United Kingdom?
Test two How would adopting the single currency affect our financial services?
Test three Are business cycles and economic structures compatible so that we and others in Europe could live comfortably with euro interest rates on a permanent basis?
Test four If problems emerge, is there sufficient flexibility to deal with them?
Test five Will joining Emu help to promote higher growth, stability and a lasting increase in jobs?

It's amazing how backward british humour can be, although they also have real comedians like Monty Python, Rowan Atkinson and the late Marty Feldman.]

Original Source