The European crisis, on the other hand, has the potential to be a much more significant moment of truth than one more turn of the business cycle. To save the euro, some of its members are frantically setting about completing the work started by the original builders of the European project. It is unclear whether they will succeed or fail. German domestic imperatives may yet assert themselves, fuelled by a Teutonic disinclination to subsidise the southern Europeans on a permanent basis. This month, the German constitutional court is due to rule on this latest attempt to bend the strict guidelines of the German Basic Law. It has the power to halt fiscal union.
What is clear is that it is now impossible to pretend that the EU is anything other than an attempt to create a country called Europe. Apart from elements of its business and foreign policy establishment and in an unrepresentative slice of bien pensant opinion, the UK has zero interest in being part of such an enterprise.
The crisis thus forces Britain to choose. Not wanting to be included in the inner core, Britain must decide what its relationship with the evolving entity will be. Should we stay in the EU and wait for a chance to try and renegotiate a deal which repatriates powers? Or should we leave and choose as our model Norway, which accepts EU regulation in return for access to markets? Perhaps we would be better off pursing the route taken by Switzerland, which would mean being outside the European Economic Area but then negotiating free trade agreements with the EU. Couldn't a country of Britain's size with an economy more than double the size by GDP of the Swiss and Norwegian economies combined, which is a net contributor to the EU and is huge export market for companies in the EU, actually negotiate a rather good deal? Of course we could — and this is the nub of Dan Hannan's argument in A Doomed Marriage.
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