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The European disintegration dance took on a new look, as Merry ole England used its veto this week to making major changes to the current draft of the EU charter. The ramifications of that veto are still bouncing around Brussels.

The use of the Veto has turned into a red line between the island nation-state and its neighbors across the waters to the east. The Franco-German demands of the surrendering of British national sovereignty to a greater Germany isn’t playing well in London.

The members of the current EU minus Great Britain are now discussing the idea of a new supranational treaty to replace the current one. If this was to happen, Europe, would take a more continent only approach. It would lead to a new “Europe for Europeans” but with out Great Britain being a member. This would have major changes to bilateral relationships in the region.

It also puts into play a situation where Great Britain could be leaving the full EU structure, while other weaker nation states that are on the economic edge are watching outcomes.

The French ~ Germany actions of today remind me of the British in Dunkerque in 1940. The EU leaders in Brussels seem to have outmaneuvered the British, but the implications of their new actions have not been fully thought out yet by anyone.

Europe needs stability, not less economic resources during this crisis. Emotionally charged decisions usually are the worse ones possible. We shall see how history judges Sarkozy & Merkel in the future.

Germany, technically still an occupied nation, is aggressively trying to unwind its WWII losses during the global economic crisis that is now underway, only it is using the economics of debt loans instead of its Panzers marching through the farm lands of its neighbors this time.

So far the united Germany with Merkel at the helm, has followed its own path through the global financial crisis. However the bail out numbers necessary to fix Europe are larger than what even Germany can handle on its own.

Germany is playing for all the marbles, and is now making its demands for security known, and it seems to be a new stronger federated approach. However, to get there Germany is demanding that the new member states give up their own sovereignty.

United States of Europe, but with out the British in it. The EU summit negotiations have been anything close to friendly. The New Napoleon in Paris has restarted the old Anglo word wars. Diplomacy has taken a backseat to sound bites.

One French official blasted the British PM for demanding concessions but offering nothing in return. He likened Mr Cameron to “a man who wants to go to a wife-swapping party without taking his own wife”.

The next solution to the future of Europe appears to have a new core Europe with France playing the role of “home maker” to Germany’s “factory worker“. This new duopoly will form out of the ashes of the current EU project.

A two-speed European area $FXE is in the making, with the core nations plus the economically independent British $FXB, Swiss $FXF & Norway on the edges. Sweden will make an interesting test case $FXS as it is halfway in and halfway out.