AS the year ends with East Lancashire's economy robust overall -- despite continuing decline in the manufacturing sector and several high-profile closures that cost hundreds of jobs -- closer still comes the crunch issue crucial to everyone's prosperity.

It is whether Britain should embrace the European single currency and join the 300 million in the 12 EU countries which have had the euro for a whole year now.

As we report tonight, the issue is as divided as ever in East Lancashire.

But although many local holidaymakers now have direct experience of the new currency and its border-hopping convenience, it is in the world of business and industry that its impact is most important -- for trade and jobs.

And certainly there seems some evidence that the world of manufacturing -- on which East Lancashire is still highly dependent despite increasing replacement of factory jobs by service-sector ones -- looks to Britain joining the euro for relief from its worries. That is because a strong pound and UK interest rates are deemed to be harming the competitiveness of British-made goods.

But manufacturing's concerns are only one factor in the euro equation and, generally, the UK economy has not suffered while Britain has remained outside the Eurozone. And just as important in the view of sceptics is the impact that the scrapping of the pound would have on Britain's sovereignty and its future as a nation state.

Five strict economic conditions have been set by the Government before any decision on joining the euro can be taken. But while the promised referendum on the issue is unlikely to be held this side of a general election, this year's go-ahead for the admission of 10 new states to the EU will beg even more strongly the question of how long Britain can remain outside the Eurozone.

And it is a debate that will get ever hotter during 2003.