In a chilling threat to UK sovereignty, German finance minister Wolfgang Schauble predicted that all Europe would one day use the single currency. “It will happen perhaps faster than some in the British Isles currently believe,” he said.

His sinister warning followed the emergence of a secret German plan to build a powerful new economic government for the eurozone and block an EU referendum in Britain.

A leaked German foreign ministry memo detailed plans for a new European Monetary Fund. It also claimed the EU’s treaty could be altered to centralise more power without triggering a vote.

In a further sign of growing German supremacy within the EU, David Cameron was yesterday rebuffed by Chancellor Angela Merkel in talks over how to tackle the euro crisis.

Last night British opponents of the EU were horrified by the bellicose threat to Britain’s economic independence.
 Tory MP Peter Bone said: “I would be happy to have a bet with the German finance minister that the euro will disappear before the pound. It is a completely absurd suggestion that will never happen.”

Fellow Tory backbencher Douglas Carswell said: “It is a tragedy that a continent of millions of hard-working people is run by clowns like this.”

And UK Independence Party leader Nigel Farage said: “This German bullying is deeply unpleasant and the sooner we leave the EU the better.”