EU ratchets up centralised rule

It's an undemocratic inner core calling the shots in the EU, says Fraser Nelson in his piece Europe's hit squad.

He concludes

Merkel and Sarkozy have both been fond of saying that they ‘will do everything necessary’ to save the eurozone. Neither Berlusconi or Papandreou would now doubt them. But a situation where even British officials talk about helping regime change in Italy is not one that can — or should — last long. Berlusconi’s demise marks the EU now entering its endgame. When empires collapse, they can do so very suddenly. David Cameron had better be ready.

The EU's problem is that none of this addresses the eurozone's central contradiction: southern eurozone countries have become uncompetitive with Germany at a fixed exchange rate, and their electorates won't accept the measures that would be needed to restore that competitiveness.

It’s no good anyone trying to govern southern Europe as if it were northern Europe – whether they’re domestic politicians or foreigners.

Greece & Italy are holding their breaths at the moment – wait till they get interim governments and the “reforms” start to bite. The streets will be lively. And neither country is likely to elect a government with a clear majority. Removing their heads of government brings them no nearer a solution.