Senior Labour politicians believe that Britain would now be financially better off had the country joined the euro, according to the president of the European Commission.

José Manuel Barroso said that the UK is "closer than ever before" to entering the single currency, because of the fallout from the global financial crisis.

He told French radio that "people who matter in Britain are currently thinking about" membership, adding that the country was sufficiently pragmatic to drop its traditional hostility to the currency if there was a strong economic case.

"I'm not going to break the confidentiality of certain conversations, but some British politicians have already told me: 'If we had the euro, we would have been better off'," Mr Barroso said in an interview.

"The British have an enormous quality, one of many, that is they are pragmatic. This crisis has emphasised the importance of the euro, in Britain as well."

He added: "I don't mean this will happen tomorrow, I know that the majority are still opposed, but there is a period of consideration under way and the people who matter in Britain are currently thinking about it."

Sterling's sharp falls in recent months have raised concerns about the currency's long-term future.

Hong Kong's leader last week urged Britain to adopt the euro.

In his interview Mr Barroso pointed to the case of Denmark, another EU state which has so far refused to accept the euro but is considering holding a new referendum on the single currency.

The Danish voted against joining in 2000.

Source: http://www.telegraph.co.uk