ANY decision to delay a referendum on the euro until after the next election would be "disastrous" for British industry, which is set to lose another 150,000 manufacturing jobs next year, the head of the TUC has warned.

General secretary John Monks said a clear intention to join the single currency would bring down the "overvalued" pound and help companies across the country.

In his New Year message, Mr Monks said the Government faced a series of "tough choices" in the year ahead, starting with the euro.

"I do not expect a referendum in 2002, but unless the Government pushes ahead with the process of its economic tests and starts a serious hearts and minds campaign, the conclusion will be that no referendum will take place before the next election. That would be disastrous.

"If the decision is put off again, the international investment community will conclude probably rightly that new Labour simply has not got the bottle to face down the euro sceptics."

Mr Monks said the Government could not be blamed for the world economic slowdown, but he said ministers had a responsibility to ensure the country maintained a strong manufacturing base.

Improving public services was also a big challenge, but it will only succeed if it wins the support of public sector staff, said Mr Monks.

"Gimmicks and an obsession with tomorrow's headlines may appear attractive short-term tactics, but they work against the only long-term strategy that will deliver."

Mr Monks said the Government would have to make its mind up next year about what relationship it wanted with business.