London Briefing: Despite the fact that there are probably many young adults who wouldn't have a clue what the letters ERM stand for, Britain's ill-fated dalliance with Europe's exchange rate mechanism has been making headlines again, nearly 13 years after the event.

The Treasury inadvertently sent some confidential briefing material to the BBC (could somebody explain how that can happen?), which cast the Tory government of the day in poor light. In turn, more material had to be released to clarify the original leaked documents.

Although not quite ancient history, the events of 1992 do seem to belong to another era. John Major was prime minister and Norman Lamont his hapless chancellor.

The most revealing part of the Treasury's limited release of documentation is the mini mea culpa on the part of officials who admitted they did not understand the political context in which Europe's monetary arrangements sat. They did not understand, it seems, that Europe was willing to sacrifice almost anything for the sake of ultimate monetary union.

The Bundesbank, cheered on by the French, didn't have to think for longer than a second or two before throwing sterling to the wolves (or hedge funds, as they subsequently came to be called).

All of this is a little odd - all those Oxbridge history graduates completely unaware that the single currency was a project born in the ashes of war-torn Europe in 1945, a project that had nothing to do with economics or Britain.

This failure to recognise the political dynamic that lies at the heart of the great European project carries great resonance to the present day. But the level of the debate has not improved one iota: whether you support joining the single currency is still largely an emotional decision, based on the kind of logic that determines whether you support Chelsea or Arsenal. Whatever side of the debate you are on, it's something you have always done.

The British can probably forgive themselves for failing to understand Europe. Few Europeans have much of an idea either. So many different motives, so many different objectives.

The Italians joined up in the hope that their country would be more governable by Brussels than by Rome; Belgium and France had grown tired of being invaded every 50 years so; the Dutch went along because they are so keen to be part of a consensus; the Irish never miss an opportunity to be part of something Britain is not.

Higher-minded Europeans were keen to stop the continent's bloody history from repeating itself.

Since the pound was thrown out of the ERM, an event which shattered the dreams of the ever-dwindling band of British Europeans, the UK economy has gone from strength to strength. Indeed, the economy is nearly 50 per cent bigger than it was back then, far exceeding the expansion of Germany or France over the same period. For most people, this simple economic statistic is reason enough not to get involved in any more monetary experiments, which reveals just how little we have learned about Europe.

Until someone is brave enough to make the case for Europe over and above simple economics, the debate will be conducted on the wrong terms.

Indeed, until a British politician is heard to argue that Britain's participation in Europe is worth paying an economic price for, we can be confident that the UK will stay semi-detached.

Just imagine Tony Blair explaining a vision of European unity that encompassed much more than the single currency, a vision that explained that Europe is about the defeat of fascism, and, ultimately, nationalism.

Yes, ultimately there must be wealth creation, but Europe stands for something much more, something worth bearing some short-term economic pain for. Brussels might be corrupt, the CAP is certainly an abomination, but the alternatives are far worse. All very noble, probably terribly naïve - and a case completely impossible to imagine being argued by a British prime minister.

Back in the real world, Tony Blair and Gordon Brown have their famous five economic tests to pass before joining the single currency, tests that are as economically illiterate as they are politically vacuous.

Europe ultimately destroyed John Major's premiership, and played a large role in the earlier demise of Margaret Thatcher.

We have a general election coming up in May, to be followed, probably, by Blair's resignation shortly after he loses the European constitutional referendum. The French have a phrase for this kind of sequence of events, but, being British, my language skills are not quite good enough to remember what it is.

Chris Johns is an investment strategist with Collins Stewart. All opinions are personal.