We could face two referendums on Europe in the near future: one on the Constitution and one on the Euro.  The detailed arguments on each will be different, but the broad proposition is the same: Is Britain to be a fully committed partner in the European project or should we be taking a different path? This is the issue that should be put to the public, a simple in or out, not questions on the details of a complicated constitution or the economic merits of a single currency.

Back in 1998 I wrote a pamphlet called Britain’s Place in the World  - Time to Decide.  I thought then that that the choice was clear: either we should become an enthusiastic member of the European Union or we should revert to our traditional role as an independent global trading nation. A policy of procrastination, supported by both main parties, had  damaged and would continue to damage Britain’s interests.  The situation six years later is identical.

Politicians have long been in a state of denial over Europe. European political leaders have said explicitly that the European Union will develop into full political union. Ever closer political union is written into the treaties of the Union, but it has suited us to hope that Britain can be part of Europe without being part of a political union.  I believe this policy has damaged British interests and Britain has hovered unhappily on the sidelines of Europe, alienated our European partners and failed to develop a positive vision of our place in the world.

A vision for Britain as a global free trading nation is the vision I favour. I believe we can best advance our interests outside a European political union whilst enjoying free trade with our neighbours. However I accept that there is an intellectually valid case for pursuing our interests from within the European Union. What is least acceptable is the current policy of fence sitting.  Therefore we should not be asking the public a question about the merits of an EU foreign minister, a permanent presidency and the rest of the massive detail in the draft Constitution but a fundamental question about our future role in the world.

If the vote was “no” Britain should negotiate an associate membership of the European Union.  If the vote was “yes” Britain should commit to make the Union work for Britain and all its partners by signing up to the Constitution and the currency.

A referendum should be the 'final reckoning' on the issue. We have to make our mind up whether we want to make a success of Europe or not. If we want to stay in it should in future be as a fully committed member.  It has been damaging being inside and endlessly disagreeing with other countries who have a different view on the powers to be exercised by the nation state.

In 1998 I believed we should decide then.  After six years of fence sitting the issue is still pressing.  I still believe we should decide the wider question now, but I regret that the likeliest outcome of all this is that we will still be impaled uncomfortably on the fence in six years time.