David Cameron's referendum may never be necessary

Ambrose Evans-Pritchard has covered world politics and economics for 30 years, based in Europe, the US, and Latin America. He joined the Telegraph in 1991, serving as Washington correspondent and later Europe correspondent in Brussels. He is now International Business Editor in London. Subscribe to the City Briefing e-mail.

 

David Cameron's referendum may never be necessary

David Cameron's pledge for an 'in-or-out' referendum on Europe will be overtaken by internal events long before we reach 2017. The vote may never be necessary. He is entirely right to play for time.
The eurozone's North-South misalignment has not been resolved. The Club Med bloc is still sliding into deeper depression. The financial crisis — never more than a symptom — has graduated into a more intractable economic, social, and therefore political crisis.
The ECB's Mario Draghi has taken the risk of a sovereign default in Spain and Italy off the table, but he has not restored these countries to economic viability within a D-Mark currency bloc, and nor can he.
Take a moment to read Eurozone crisis: it ain't over yet by Professor Paulo Manasse from Bologna University, posted on VOX EU.
Look at the German-Italian gap below. The… Read More