Who knows?
As I write David Cameron has just vetoed Angela Merkel and Nicholas Sarkosy’s proposal for closer fiscal integration between European states. A day earlier Standard and Poor’s put the best part of Europe on credit watch, threatening to downgrade national credit ratings if nothing substantial happened to shore up the collective accounts. The day after the 10-hour long European fiscal integration talks concluded with all but three countries (UK, Sweden and Hungary) signing up to the treaty within a treaty, far from stabilising things, increased Italian bond rates actually made its governmental borrowing more expensive.