Seven days which began with the Gov- ernment under a cloud of criticism over economic and monetary union ended with the familiar spectacle

Seven days which began with the Gov- ernment under a cloud of criticism over economic and monetary union, ended with the familiar spectacle of Conservative disarray.The toll includes a resignation from the Shadow Cabinet, one from the front bench, and public criticism of the leadership from the three great beasts of Tory politics - Kenneth Clarke, Michael Heseltine and Douglas Hurd. A backbench MP, Peter Temple-Morris, decided only at the last minute to stay within the party rather than defect to Labour. Meanwhile, the arch-Eurosceptic backer Paul Sykes voiced his dissatisfaction with Tory policy on Europe, and placed his well-filled wallet at the disposal of the Referendum Movement. Since the Tories are destined to continue their civil war on Europe, Mr Blair's long-term aim of splintering Conservatism remains very much on track.Given the timidity of the Government's statement on EMU last Monday, this shows how the Prime Minister's luck has held. After lengthy discussions between Mr Blair and the Chancellor of the Exchequer, Gordon Brown, a formula was agreed which declared in principle in favour of the European single currency, while setting tough - and subjective - tests for joining.

Mr Brown ruled out any decision to join EMU in this Parliament.In domestic political terms, this achieved two apparently contradictory objectives. It kept the Eurosceptic Murdoch press - the Sun especially - on board, while beginning formal preparations for monetary union (although there will be no commitment to endorse EMU ahead of the next election). Flexibility is the key.THIS alone might not have been enough to de-stabilise the Conservative Party. What caused it to lurch was William Hague's own doing four days earlier. At a meeting of the Shadow Cabinet, he hardened the party's position on EMU It had been against joining for the "foreseeable future".

Under pressure from Eurosceptics, the policy returned to the harder position on which Mr Hague had fought during his leadership contest. This committed the opposition to fighting the next general election against EMU, effectively ruling out membership for nine or 10 years.A poorly co-ordinated pro-European Conservative counter-offensive began to take shape. On Monday, Mr Temple-Morris entered Downing Street by a private entrance and, over tea with Tony Blair, his chief of staff and his press secretary, discussed his defection to Labour. But, behind the scenes, Michael Heseltine made known his objections to the policy shift, speaking to Mr Hague a couple of times. One of these occasions was a face- to-face meeting in the Leader of the Opposition's office at the Commons on Tuesday morning. The two men sat in easy chairs for half-an-hour and had what is known in the business as a frank exchange of views.Dissension became public on Wednesday in an article by Kenneth Clarke, published in the Daily Telegraph, calling for a cross-party alliance in favour of entry into EMU. The day got worse for Mr Hague when Ian Taylor, front-bench spokesman on Northern Ireland, quit.