David Cameron's withdrawal from an EU-wide treaty to deal with the debt crisis was the right thing to do as the treaty on the table won't fix the crisis and threatened the position of the City as the world's premier financial market. However, it not leaves Britain as potentially the only member of the EU not to sign up to the deal. Consequently, Britain may be marginalised and full withdrawal (or ejection) from the EU may be just around the corner unless the Euro collapses first, which is becoming more likely every day. The treaty needed two things to save the euro - (a) the ability to have fiscal transfers to economies hit by demand shocks (e.g., the PIIGS) and (b) a change in the ECB's mandate, which would enable it to monetise the debt of EU sovereign states.
