The european battle-lines are being drawn

I would assume that the recent fights over whether to extend the euro bailout fund means that Germany is now seriously considering leaving the euro-zone. Since Austria and the Netherlands have joined on that side, I think we are beginning to see who are going to use the "North euro" and who will be stuck with the "South euro".

It wouldn't surprise me if Merkel&Co tells our favourite authoritarian french prime-minister he can't join. Finland is probably an automatic member in the North, and the Baltic states may subsequently let in. Club Med will be left to print-print-print to their hearts enjoyment.