Only a year ago, it would have seemed unlikely that France and The Netherlands would reject the EU Constitution just a month after a UK general election in which Europe barely featured.

Yet that’s what happened in May and June 2005.

The UK's record on Europe

While France and Holland have been, traditionally, among the most pro-European nations, the issue has been divisive in UK politics.

Successive British governments have acted as a bridge between the US and Europe.

Opting out of the Euro

The last Conservative government secured opt outs from the pivotal 1992 Maastricht treaty and later that year withdrew from the Euro's precursor, the European Exchange Rate Mechanism (ERM).

The current Labour government is committed to adopting the Euro, but only after five stringent economic tests have been met, and a referendum.

Does this affect trade?

Euro enthusiasts claim failure to adopt the currency will damage the UK trade and investment within Europe.

Europe accounts for more than half the country's trade and membership of the currency undoubtedly makes it easier to do business within the Eurozone.

UK: The strong man of Europe

However, the UK's pragmatic approach appears to have paid dividends.

Figures from the Organisation for Economic Co-operation and Development (OECD) show that, since the Euro was introduced in 1999, the UK has out-performed all its major European rivals.

Will this trend continue?

Like all the major economies, the UK faces some tough challenges.

In reducing its 2005 world-growth forecasts recently, the OECD predicted that the UK rate would also fall but would nevertheless remain double that of the Eurozone as a whole.

Predicted Growth 2005 (per cent)

Long-term stability

Beyond Europe, the UK has, for the last decade, enjoyed the most stable growth among the G8 economies.

The bedrock of this success has historically been low inflation and interest rates.

Inflation last year was 1.3 per cent and is set to stay below the Government's central target of 2 per cent.

UK likely to stay in front

Ironically, while many British euro-sceptics view Europe as a threat to this economic model, the primary concern of many of the French and Dutch 'no' campaigners was that the draft EU constitution was “too Anglo-Saxon”.

With current economic trends set to continue, an unintended consequence of the ‘no’ vote is that the UK is likely to maintain its economic advantages over its main European rivals.