The suggestion by the powers of France and Germany for a closer union has had fairly predictable repercussions, with a split starting to appear between those countries who want closer political union, and those who do not. It is Germany who is in the driving seat, and their effective refusal to support the minor Eurozone countries or clear the European central bank to do so means that countries either have to choose to go with Germany, or push away.
This fragmentation is hugely destabilising, and the uncertainty over the future of the Eurozone and its nature is enormously damaging to all our prospects of recovery. It is in such a scenario that speculators thrive, and the worry is that an attack or a run on one currency or institution or another will cause a catastrophic foundation collapse.
Could Germany and France not have anticipated this?
Some say they could and should, and the financial proposals that they came up with in the summit last week were not just reckless, but dangerously so, as they knew what the outcome would be. Perhaps this is a game of chicken which has gone too far.
A French member of the delegation commented on British involvement in the Euro crisis has been like Mr Cameron coming to a wife swapping party, but without bringing a wife. Unfortunately the “wife swapping party” is not a closed little club, but affects all other economies in the world. Mr Cameron and other EU non-Eurozone countries that have stated their views have every right to do so.