What's the Latest Development?

A new treaty committing euro members to fiscal discipline was one of the are the essential components of the deal announced today by German Chancellor Angela Merkel and French President Nicholas Sarkozy. They appear to have agreed on a fast-track eurozone consolidation on a take it or leave it basis as far as the rest of the E. U.  is concerned, says Rafael Behr.

What's the Big Idea?

"From the French and German perspective it now looks as if the future of the European Union and the future of the single currency are the same thing. They are embarking on a new phase of integration. The implicit message to Britain: come along if you must, but stay in the back seat because we're driving."