The UK and the eurozone are on the edge of the abyss, yet the political parties are still fiddling to decide who will form the next UK government. Amazing.
The fear is that speculators tomorrow will drive Spain and Portugal along the road trodden by Greece. If this happens, Ireland and Italy are next in the firing line and the UK will be close behind. Desperate attempts are being made in Brussels for EU countries (not just those in the eurozone) to agree a 500 billion euros guarantee fund to see off the speculators attacking Spain and Portugal. The next few hours will determine if a fund has been established and its effectiveness. Contagion is spreading. The 'rescue' of Greece has not stopped the problem of sovereign debt spreading.
The German government is coming under severe pressure from the electorate, as well it might given that some cities are almost bankrupt. Severe strains are being felt in France.
Will the euro survive? If it doesn't what chance of the EU surviving as individual states seek their own salvation?
And what of the UK? There are suggestions that the UK economy is growing more rapidly than the raw economic data suggests and that our position may not be as bad as Greece. But there is still an enormous sovereign debt and the UK economy cannot be insulated from the problems in Europe.
Dangerous times. A time to be fiddling about with the electoral system? Some of problems need a strong government now. Is Mr Clegg looking at the storm clouds over Europe?
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