POLITICAL union is the key to the euro's long-term future, a leading banker claimed at a Kent business dinner.

Eric Sepkes, Czech-born vice-president of American-owned Citibank, praised Europe for its smooth introduction of the euro.

"How sustainable is the euro without political union?" he asked at the Marriott Tudor Park Hotel, Bearsted. "It's become more questionable. When you've only got monetary union, it's easier to pull out."

If any single currency member threatened to quit, "we will escalate the movement to political union. Political union is the only way to paper over the problem".

A British decision to swap the pound for the euro would depend more on politics than economics, he said. Mr Sepkes said before a Kent Executive Club dinner that in all other instances of monetary union, economic conditions were secondary. "It's all based on political will."

He told KEC members that "corporate Europe" had done precious little during the three-year transition period to gear up for the euro. Firms had left everything to the last quarter.

Britain was unlikely to need such a long transition period if it ever decided to adopt the euro. Europe had needed time to make 45 billion notes and coins. Europeans had adapted well since E-Day.

"It wasn't a question of like or dislike, it was "let's simplify it and get on with it."

He blamed German unification for the euro's weakness against the pound. Asked whether Britain would sign up to the euro, Mr Sepkes said: "It's more likely to be when than if."

Kent Executive Club is hosting a euro debate on February 22 at Marriott Tudor Park Hotel. For details, call 01622 820271 or 01622 744767.