Ireland could lose out economically and be isolated in the international community if it does not take part in the world fair, Expo 2000, planned for Hanover, Germany, according to the event's commissioner general. Speaking in Dublin yesterday to the German-Irish Chamber of Industry and Commerce, Ms Birgit Breuel, said the participation of the Republic in the fair was "essential" if Europe was to be represented "as a community".

The Government has yet to make a decision on whether to participate. Along with Sweden, it is the only EU country yet to decide to enter. A spokesman for the Department of Enterprise, Trade and Employment said the Government looked upon Expo 2000 "favourably", but a decision was not expected until Christmas.

That is the "absolute latest" date for entry to the fair, according to organisers, who say that, at this stage, some of the best exhibition space will be gone.

The Government has already decided not to be present at next year's fair in Lisbon.

The German government is reported to be anxious the Republic be represented at the fair, particularly to highlight the state's economic performance as an EU member-state. The German Chancellor, Dr Helmut Kohl, originally invited states to take part in the fair and Ms Breuel was appointed by the German government.

According to sources, the cost of entering the fair - several million pounds - will have to be borne by one department.

The reluctance of any department to bear the cost has led to a delay on the decision, according to the sources.

A record 150 countries will take part in Expo 2000, which is expected to attract more than 40 million visitors to Hanover. Some of the world's most famous landmarks, for instance the Eiffel Tower, have been conceived and replica models presented at previous fairs. The theme of the Hanover fair will be "Humankind, Nature, Technology" and will follow on many of the themes first discussed at the 1992 Rio environmental conference.

Private firms and organisations are not permitted to enter the fair without the participation of their national governments. Smurfit Ireland is one of the companies said to be "keenly interested" in taking part in the fair.

"For private industries, the world exposition is a big challenge to prove their competence for solutions to global questions," said Ms Breuel yesterday.