YORK MP Hugh Bayley has helped to kick-start the city's campaign for Britain to join the euro.

He told a gathering of about 60 people, including local councillors and business people, that joining the currency would give a boost to businesses and consumers alike by bringing greater economic stability, lower interest rates and lower inflation.

The event, at the Pitcher and Piano bar, in Coney Street, last night, was organised by the campaign group, York In Europe, to promote debate about Britain joining the euro and to celebrate the currency's first birthday.

Mr Bayley said Chancellor Gordon Brown would make an assessment of the Government's five economic tests for joining the euro by June and he expected him to give the go-ahead for a referendum in the autumn.

The Labour MP said: "That decision will be put to the British people in a referendum, and when it happens I'll be campaigning for a 'Yes' vote." But he said: "We must engage in the arguments now. The critical issue for everybody that goes into that polling booth is: 'What does this mean for me and my family?' "

He said Britain had a lot to gain from joining, "provided we join at the right time".

York businessman Anthony Day, of Cyber-Associates Ltd, said there was a need to separate "rumours and scare stories" from the truth.

"When the UK introduces the euro, we must learn from the European experience and not lose sight of the considerable long-term benefits: low inflation, low interest rates and stable prices," he said.

The reception was also addressed by the self-dubbed "euromaniac" Liberal Democrat peer Lord Smith of Clifton; Harrogate businessman Les Parkes, convener of Harrogate in Europe; and Sheffield businesswoman Julia Gash, chairwoman of the Yorkshire and The Humber In Europe campaign.

Updated: 11:16 Friday, January 17, 2003