The pound makes no sense as an independent currency. The famous 5 tests should be revived and government policy should be directed towards passing these tests with a view to joining the euro at the earliest opportunity. No other policy offers long term stability. The euro is stronger, is supported by an economy of potentially 500 million people, and the eurozone is the biggest customer for our exports. Like it or not, we need to join.

Governments that embraced deregulated, laissez-faire capitalism helped to create the problems we now face. Alllowing banks and other financial institutions to lend without the traditional credit-worthiness tests, then parcel up debts and sell them on was a recipe for disaster, as a number of wise commentators said for years before the crash.

Until there is a wholesale review of our economic system, and the role of credit within it we are not going to get out of the mire. We need investment in the real economy that produces goods and services we can sell to earn our way in the world. As Harold MacMillan might say, we have been living off the family silver. Borrowing against grossly inflated asset prices especially property then bingeing it on consumer goods we neither make nor cannot really afford is a recipe for disaster.

It's time for a reality check. New Labour is casting around for a credible policy and the Tories, frankly, don't have a clue and it's their system that's gone sour anyway. We're in for some very rough weather.

Now is the time to prepare the ground for entry and to take on the hardline Europhobes. The pound has no long term future, and we must accept that.

By all means have the 5 tests, but the authoriies must be pro-active in ensuring the conditions for entry are met. The ERM debacle was the result of poor planning and an unrealistic rate for the pound.

The Euro is too important to ignore. We must join or be left behind.