Touching, isn't it?

As the eurozone edges ever closer to disaster, it has fallen to Mr Sarkozy to reassure the markets and state his undying loyalty to marching in ever closer step with Germany (though not diminishing France's sovereignty!).

http://www.telegraph.co.uk/finance/financialcrisis/8929562/Nicolas-Sarkozy-promises-no-eurozone-member-will-default.html

The fault lines remain: is the way forward that of fiscal union, or imposing penalties on nations which breach agreed fiscal rules?  What is the role of the ECB to be?  Will  a QE monetary policy be implemented through the ECB to stave off recession?

In recent days there has been a glimmer that there may be a little loosening of the German position on funding the EFSF (via the IMF), but the word form Berlin is not encouraging on other aspects of the role of the ECB.

However the fundamental problem remains.  How is the disparity between the economies of the nations in the eurozone to be resolved?  The only policy offered so far is one of interminable austerity and the imposition of governments which take their orders, not from national parliaments, but from the EU Commissars.  Are these states to remain second class states within the eurozone: trapped in a currency and interest rates set for Germany's benefit? Sarkozy offers no hope for these states, just more of the same.

Remember this from Mr Sarkozy in July?

http://www.telegraph.co.uk/news/politics/8653903/Eurozone-leaders-hail-leap-towards-economic-union.html

Gives you confidence......it doesn't?