To others, especially on the Left, Rupert Murdoch is the modern equivalent of the Anti-Christ - too powerful, too domineering and - thanks to his worldwide newspaper and TV interests - far too influential in British politics and culture.

Now in his first BBC interview for many years the man behind The Sun, The Times, The News of the World and large parts of British TV, talked freely about Tony Blair, Michael Howard, the Euro and the next election.

The BBC's Business Editor, Jeff Randall, began by asking him how the British economy stacked up against those of Europe and America.

Watch the interview

RUPERT MURDOCH:
Well, it seems to be standing up pretty well against continental Europe. I think that it is not standing up perhaps as well as it should against the American economy, which is - has gone through a little bit of a lull, is now growing very, very fast. I believe that if America can keep a growth rate of 4 or 5% a year for four or five years, it's going to leave Europe even further behind. But that, again, comes to how is Brussels going to behave? What's going to happen with this new Constitution? What central powers will come in? How it will affect this economy. I'm one of those who think there are great dangers ahead.

JEFF RANDALL:
You don't like the idea of a European Constitution being imposed on Britain?

RUPERT MURDOCH:
I don't like the idea of anymore abdication of our sovereignty in economic affairs or anything else.

JEFF RANDALL:
And will your papers fight to oppose that?

RUPERT MURDOCH:
Oh, certainly. We'll have to see what's in the final constitution. But if it's anything like the existing draft, we would certainly be opposed to it.

JEFF RANDALL:
Now, in recent days, there has been strong support from the Sun, in particular, for Michael Howard since his elevation to leadership. Is there any chance that the Sun will endorse him for the next general election, that the Sun will support the Tories?

RUPERT MURDOCH:
Well, you'll have to ask the editor that. Asking me, I would say that we'll have to see how the Tory frontbench looks. It looked like a viable alternative Government, which it hasn't so far - and we will not quickly forget the courage of Tony Blair in the international sphere in the last several months. So we may be torn in our decision, but let's wait and see. It's a long way away. Let's see what the Government is doing with Europe. Let's see how Mr Howard performs. Let's see how the Government performs. They need to give you a clear answer on that at this stage.

JEFF RANDALL:
You talk about Prime Ministers' courage in international affairs. I assume you're referring to Iraq?

RUPERT MURDOCH:
Yes.

JEFF RANDALL:
What about on domestic issues?

RUPERT MURDOCH:
Yes, not European affairs. Right. Where we have a difference of opinion.

JEFF RANDALL:
In the last election, your papers, certainly your important papers supported Labour. Have you been disappointed by what they've done on tax and regulation?

RUPERT MURDOCH:
I think you're always disappointed when you see taxes going up and you see business and people being more and more regulated in their lives. I think they could have done a lot more to deregulate things. But I don't really see much drastic change. The question is, when is the Government going to do something? And will he deliver on his promises?

JEFF RANDALL:
Clearly, you do have a difference of opinion with the Prime Minister on Europe. I'm sure he must ask for your views. What do you tell him about Europe? What should Britain do in Europe? And what should it do vis-a-vis the euro?

RUPERT MURDOCH:
I believe it should do nothing. I think the people of Britain are very happy being a member of the existing Europe - more happy than I am, but there's no need to take it any further or to concede anymore power to the centre.

JEFF RANDALL:
And if it does, do you feel that's damaging to business?

RUPERT MURDOCH:
I think it could be damaging to business. It could be damaging to the way of life in Britain. It could be damaging in many ways.

JEFF RANDALL:
And, of course, later this week, we've got the President of the United States visiting, President Bush. What's your view of the kind of job he's done so far, all in all, with economy and in terms of Foreign Affairs?

RUPERT MURDOCH:
Well, there are certain exceptions but I would say that I would put myself as a pretty strong supporter. In Foreign Affairs, in most matters, in economic affairs, in getting taxes done, in moving to free up competition, getting business going, I think they're very good. I think, on the other hand, it was a great mistake to bring in the steel tariffs and was against everything that he stood for, and I hope we see that reversed, but by and large, you could put me in the column of supporters.

JEFF RANDALL:
Would that be true also of the Prime Minister in this country? Are you still - does he still basically have a positive number in your mental balance sheet as to his performance?

RUPERT MURDOCH:
Yes but let's just say, you know, we have a friendly relationship as I do with Mr Howard. And the jury is out.

JEFF RANDALL:
It's no certainty that you'll support Labour in the next election?

RUPERT MURDOCH:
No, and it's no certainty we'll support the Tories either. It's up for grabs.

JEFF RANDALL:
I am very grateful for your time.

This transcript was produced from the teletext subtitles that are generated live for Newsnight. It has been checked against the programme as broadcast, however Newsnight can accept no responsibility for any factual inaccuracies. We will be happy to correct serious errors.