The current system causes a lack of strategic grip and doesn't give Europe political leadership and clout

Peter Hain Europe Minister

His call comes as Conservative leader Iain Duncan Smith urged Mr Blair to "get on" with calling a referendum on Britain's entry into the single European currency.

In an interview with the BBC's Newsnight programme, Mr Blair said a euro referendum could be "getting close".

But Mr Duncan Smith accused the prime minister of "playing games" by appearing to be in favour of the euro one day and against the next.

Future job

The Tories also poured scorn on Mr Blair's call for an elected European Commission president.

This is is the pinnacle of Labour's obsession with producing jobs for the boys

Michael Ancram, shadow foreign secretary

Mr Blair is reported to believe that the new post would provide the European Union with political leadership, accountability and a higher profile.

But the Tories accused the prime minister of lining up a future job for himself.

'Foaming at the mouth'

Shadow Foreign Secretary Michael Ancram said: "This is is the pinnacle of Labour's obsession with producing jobs for the boys.

"On this occasion it is a job for the boy."

But pro-euro former Tory Chancellor Kenneth Clarke urged the party's leadership to consider the proposal.

"The Front Bench might consider this carefully before flying off the handle," he told BBC News 24.

Mr Clarke said he believed Tory leader Iain Duncan Smith was trying to "cure himself" of the Conservative habit of "foaming at the mouth as soon as anything comes out about Europe".

'Merit'

Mr Blair's spokesman said there was room for a debate on the issue of a European Commission president.

He said: "This is one idea that has the support of other countries. There are papers circulating about it."

'Longer presidency' call

But he said it was too early to disclose details on how the system, which currently rotates presidents every six months, would work.

"The important thing is to have the debate and not prejudge the outcome of that debate... we are part of the developing consensus."

Europe Minister Peter Hain said the president would probably be a former head of government.

Peter Hain: President probably an ex head of government

"You need a longer presidency," he told the Financial Times.

"The current system causes a lack of strategic grip and doesn't give Europe political leadership and clout."

Blair for the job?

Spain is expected to add its support to the measure which has the backing of Valery Giscard D'Estaing, the French former president.

If approved by EU member states, the new role could be created in 2005 or 2006.

Tony Blair's name has certainly been mentioned in connection with the job

Simon Murphy British Labour group of MEPs

The suggestion that Mr Blair might consider such a position if and when he stands down as Labour leader has long been the subject of backroom chat.

While Mr Blair could find himself up against Spain's Jose Maria Aznar, support for the UK prime minister could heighten if he succeeds in his ambition to take Britain into the single currency.

Simon Murphy, leader of the British Labour group of MEPs, told the FT, following a meeting with Mr Hain: "Tony Blair's name has certainly been mentioned in connection with the job, but he is doing a good job running Britain at the moment."

'Political decision'

Meanwhile, Mr Blair's decision to discuss the possibility of a referendum in Wednesday's BBC interview was hailed as "significant" by pro-euro campaigners.

Liberal Democrat leader Charles Kennedy said Mr Blair had "certainly gone further in trying to move the mood music."

But he said there needed to be a clear timetable on the vote.

The anti-euro "no" campaign said Mr Blair's continued insistence on the Treasury's five economic tests was just a cover for what would ultimately be a political decision.