THERE is now not the slightest possibility that a referendum on the European single currency will be called before the next general election.

It is off the political agenda, but this is a mistake nonetheless.

Britain used to be the gateway to the European economy. Five years ago, when the euro was launched, we attracted 27 per cent of all the inward investment coming into Europe.

Every year since then, the proportion of inward investment has fallen. The most recent figures show that it is now down to just seven per cent of the EU total. Britain has slipped behind France, Germany and the Netherlands. Of course, eurosceptics will argue that the economy is doing relatively well at present.

But given the continuing damage to our manufacturing industry, massive balance of payment deficits, and Britain's poor record on both investment and productivity, will they laugh last? Only time will tell.

CHRIS DAVIES (Liberal Democrat MEP for the North West), Castle Street, Stockport.