The markets think it likely that much of the peripheral European countries' debt can never be repaid. So in the middle of a crisis which threatens the very existence of the eurozone, Merkel and Sarkozy stand up.. and have nothing to say. It would have been better if they had not had the summit at all.
The leitmotif of German-French thinking is, as discussed before, moving towards a common economic government for Europe. This however will take time - years - whilst the crisis is on us right now.
The proposal for a tax on financial transactions, or Tobin Tax, at an EU not just eurozone level, is both silly and dangerous. It would particularly damage the City of London, which provides massive tax revenues to the UK.
The question is, does Mr Cameron have the courage to put a stop to this, or does he just do what Merkel and Sarkozy tell him? It should be against government policy for there to be any Europe-wide tax.
Cameron should speak, and he should do it now.
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