Mr Cameron has a simple choice. He can either go along with the plans for a German Europe, and be hailed by federalists as a good European, or he can call their bluff and speak for the UK.
The Merkel plan will not save the Euro. It does nothing to tackle the underlying problems of too much government borrowing, and too little competitiveness. It increases the gap between the governed and the governing. Fining countries who have no money is ludicrous. Refusal to print the cash hastens market retribution. If they decide to print they can buy time, but that has nothing to do with a new Treaty.
Mr Cameron needs to say the UK needs a new relationship based on trade and friendship, and refuse to sign anything without agreement to that. He can offer them the ultimate solution for the UK problem. The UK can opt out of the intrusive government in return for letting them go ahead. If he sits in silence, or presses for a small concession, he will suit neither the home audience nor please Mrs Merkel. Looking at yesterday’s Question Time performance of many Conservatives, he only has a majority for Merkel”s Europe if Labour supports him.