David Cameron’s speech today is a sign of his frustration with the eurozone. Numbers 10 and 11 are increasingly irritated by how eurozone leaders are refusing to accept the logic of their project.
What Downing Street is keen to avoid is another wasted year as Angela Merkel gears up for her reelection campaign. So, intriguingly, we see Britain throwing her weight behind Hollande’s support for project bonds. Cameron also uses the speech to again back eurobonds, which Merkel is firmly opposed to as she knows that this would mean Germany effectively standing behind everyone else’s debt.
I can’t see a resolution to this crisis coming anytime soon, though. The economics and the politics are, yet again, set against each other. Just remember that according to a recent poll more than 70 per cent of Germans want Greece to leave the euro.