I am a bit surprised the EU nations are allowing the failure of the EU Constitution to disturb their alliances so much. You’d think they would be still able work through the EC as they have been for years now. Apparently not:

The president of the executive European Commission, Jose Manuel Barroso, said unless the summit resolved the budget problem and found a way forward on the constitution, Europe would “sink into a permanent crisis and paralysis.”

Then again, maybe it is just the classic ‘sky is falling’ political spin.

It was not clear whether the wily veteran of EU negotiations was deliberately sounding gloomy to lower expectations and raise pressure on his peers, or whether he has really concluded he has no hope of clinching an accord.

UPDATE:

Remembered reading this piece by Robert Samuelson on the economic plight of Europe. These are the real issues, but for some reason the EC dares not address them.