The discussion about Treaty change, that is. As we've noted before, Germany continues to push for treaty change to allow for a permanent crisis resolution mechanism/orderly default procedure in the eurozone. Unable to stomach the prospect of another round of ad hoc bailouts in a few years time, which exposes its taxpayers to yet more unacceptable risks, Germany will next month publish the details of its proposal. The German government might seek to insert the new provisions into the Croation Accession Treaty, set for 2012. The FT has more.
Now, the question that we've posed before is: does the German drive for a Treaty change constitute a threat or an opportunity for the UK's coalition government?
It certainly isn't uncomplicated, but we would tend argue for the latter as any Treaty change at the level of all 27 member states would give the UK the leverage (i.e. a veto) it has lacked ever since it signed up to the Lisbon Treaty.
Although we suspect that this isn't the prevailing thinking in Coalition circles at this point, it would be very foolish for the Coalition not to explore possibilities to get something in return for allowing the eurozone to restructure.