What do you think about our role in Europe?

Are you aware that the global economy can sweep us away?

Most people find it difficult to form an opinion about Europe.

This is not surprising considering the lack of clarity about what authority is being given away to a potential federal power and which powers we are to retain.

Until the nations of Europe agree on a constitution, which settles this vital division, there is always the fear that more and more power will be taken to the centre by sleight of hand.

The question of a single currency will be taken as a separate issue.

The Euro already exists and is recognised as a regional currency on a par with the dollar and the yen.

Its position will gradually strengthen.

In order to bring greater stability to the world financial situation, it could form a currency stability agreement with the dollar.

Separate national currencies will find it difficult to withstand the pressure of the world currency dealers as the pound did on Black Wednesday.

At present the value of the pound sterling is too high to join but in principle we will have to join for our own protection.

The idea that we must have our own notes and coins with the Queen's head on them is ludicrous when you consider that over 90% of financial dealings are on pieces of paper at the bank or at the credit card agencies or on the Internet.

As more and more transactions move to the Internet, our little pound becomes less and less significant.

In the global scene, nations are being outmanoeuvred by Internet currency dealers, transnational companies, satellite broadcasters, international criminals and drug traffickers as well as the financial institutions with their extensive hedge funds and derivatives.

A regional currency gives us a much stronger position.

There are hazards, however, about being in a Euro market with a European central bank.

In particular, we do not know yet how Europe will deal with a country which does not keep to the rules required for the stability of their national economy.

It will only be able to use fiscal policy controls but if these are equalised throughout Europe, they may not have these available.

The big nations will probably need to provide financial help, but will they?

We need a European safeguard for the pound but we must make sure the conditions of entry are right.

DR FRANCIS SMITH

Chairman

Tatton Liberal Democrats

Wilmslow