Battle lines drawn

Sources in the German government are playing down the likelihood of a successful outcome of the EU summit. It is a well used stratagem to play down the chances of success before an important event, but it strikes a discordant note in view of the upbeat initial response to the Merkel/Sarkozy meeting.

As this blog has stated before one o th key issues is what happens after the summit meeting?  How will decisions taken be implemented, what is the process?  Much will depend on what is decided: will it be the 17 eurozone countries which have to agree the way forward or the 27 EU countries and the risks of referenda.  Would a referendum decision by Ireland potentially scupper the whole process?

An excellent article on what happens next:  http://www.spiegel.de/international/europe/0,1518,802221,00.html

In the UK the Prime Minister David Cameron is coming under severe pressure, particularly from Conservative MPs,  as he seeks to do what is necessary to save the eurozone (a forlorn hope?) as well as securing protection from a financial services tax, repatriating some powers and binding undertakings that the 17 eurozone countries will not form a cabal that will dominate the EU to the potential detriment of the 10 non-eurozone countries in membership of the EU.  I fear there will be a lot of disgrunted MPs following the summit.

The UK government has stated there will not be a referendum on any changes within the EU goverance structure as they will not involve the transfer of any powers from the UK to the EU, particularly if the Rompuy protocol  proposals are adopted.  Opponents argue that this is a sleight of hand, as a two-tier Europe will inevitably reduce the UK's power within the EU.

http://www.telegraph.co.uk/finance/financialcrisis/8940014/Eurozone-debt-crisis-David-Cameron-failing-to-stand-up-for-Britain-says-Douglas-Carswell.html

http://blogs.telegraph.co.uk/finance/jeremywarner/100013687/camerons-threat-to-veto-treaty-change-is-just-hot-air/

http://conservativehome.blogs.com/thetorydiary/2011/12/now-boris-piles-more-referendum-pressure-on-cameron.html

http://blogs.telegraph.co.uk/news/benedictbrogan/100122195/pmqs-exposes-david-camerons-vulnerability-on-europe/

http://blogs.telegraph.co.uk/news/jameskirkup/100122156/david-cameron-gets-bitten-by-ed-miliband-on-europe-then-mauled-by-owen-paterson/

http://blogs.telegraph.co.uk/news/willheaven/100122168/pmqs-flashman-meets-his-waterloo-as-ed-miliband-looks-more-eurosceptic-than-our-tory-pm/

UPDATE from Spiegel: http://www.spiegel.de/international/europe/0,1518,802299,00.html
Four ideas to save the common currency.

Further sources: http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100013697/if-one-eu-bail-out-fund-flops-create-two/

http://blogs.telegraph.co.uk/news/danielhannan/100122263/if-were-not-pressing-for-a-repatriation-of-power-what-was-all-the-eurosceptic-rhetoric-for/ leading on to:  http://blogs.telegraph.co.uk/news/danielhannan/100096857/its-precisely-because-we-need-domestic-reform-that-we-must-leave-the-eu/