The head of the Euro bail out fund is in China with his begging bowl. If China says yes, it will set conditions. More important than that, China will thereafter have to be consulted over all sorts of fiscal and monetary issues. If China agrees it will significantly advance its influence as a world power, though it may not make absolute financial sense. So far none of the trumpeted agreement from the middle of the night before last, deals with any of the major issues and the future of the euro remains uncertain.
It is not just the money which is the problem. There is no finance ministry, no treasury, no common economic policy and no certainty that such things can be organised, as they depend on treaty changes and voters saying yes to the surrender of sovereignty. China will want to see progress on these issues. To that extent it will do the Europeans a favour. No longer will it be possible to govern with five presidents and substitute agreements and declarations for concrete action.
All of this is likely to create mounting political problems for the Tories and possibly the Coalition. The European Union now developing within the Eurozone, is a very long way from the concept of the Common Market. It is impossible in future for the euro members not to take decisions which favour their currency, especially if they are in debt supporting those of their members who are technically bust, whatever Cameron may say. A solution may be a European Union for all those wishing to pool their sovereignty and take their orders from Germany and China and a European Common Market to include those with their own national currencies. There is no need to be flustered about two tiers. It may be the best answer to have them.