WITH the election now out of the way, Britain's future role in Europe must be determined as a matter of the utmost urgency.

The falling value of sterling against the dollar highlights the peril of delaying our decision on the single currency for a moment more than necessary.

It is surely appropriate for the people of Britain to decide on the euro, rather than delay judgement any further, letting the currency speculators force a decision upon us.

While there may be some intense debate over the fortunes of the euro since its creation over two years ago, there can be no doubt that it is a formidable currency in the world's financial markets.

No matter how many of us wish it would be otherwise, the euro is here, and here to stay.

It is an economic fact of life, and Britain can no longer pretend it isn't there or that it will go away.

Britain must decide, and decide soon, whether to be part of the single currency or go it alone; to opt for the euro or stick with the pound.

Opinion is divided in the business world over which direction is best. But the business community is becoming increasingly in agreement about the damaging impact of uncertainty. The longer the uncertainty goes on, the more difficult it will be for businesses to make long-term investment decisions.

Labour won the election promising to hold a referendum within the lifetime of this Parliament. Tony Blair must ensure that the referendum is held at the earliest practical time.

In doing so he will hopefully activate a proper debate on the euro. We need to concentrate on the economic and constitutional issues at stake, and get away from the jingoistic and xenophobic language that has tended to be used in the past in discussions of the European question.

Sadly it appears that jingoism and xenophobia may to be the fore as candidates for the Conservative leadership woo the Euro-sceptic majority within the party's membership.

But once the distraction of that contest is over, the new Tory leader must be brave enough to encourage pro-Europeans within the party to express their views.

Opinions on the single currency are matters of conscious, and should not dictated by party whips.

If the referendum is to have any credibility, it is surely in Britain's national interest for the euro debate to be reasoned and not stifled in any way.