Letter: Even worse is to come until Britain learns to copy Europe's formula for success

Sir: Just under two years ago, at a banquet held in the Guildhall of the City of London attended by the Lord Mayor and some of the best paid men in Britain, John Major extolled the virtues of 'tight' money and the extra discipline that membership of the ERM would entail.

As they quaffed their champagne toasts, the then incumbent of 11 Downing Street reminded his captive audience that 'the days have gone in which businesses would simply negotiate around the Retail Price Index and assume that a falling exchange rate would help keep them competitive with their European rivals'.

Have they?

Yours sincerely,

RON NOON

Liverpool

22 September