Euro crisis: “So we have two crises now.”

In the FT, Wolfgang Münchau gives his initial thoughts on the outcome of the EU summit.  From the FT’s A-list [free subs may be required]

Thursday’s European Council meeting has demonstrated that a monetary union cannot co-exist with a group of permanent non-members in unified legal framework. The EU with its current treaties and institutions has proved to be an insufficiently flexible framework to run a monetary union and a disastrous framework for a monetary union in crisis.

These latest developments have reaffirmed my conviction that the only way to save the eurozone is to destroy the EU. But European governments may, of course, end up destroying both. All they did in the early hours of Friday morning was to create a new crisis without resolving the existing one.

And BBC Europe editor Gavin Hewitt’s take

In the long hours of a bitter Brussels night Europe changed.

A major step was taken towards closer integration. It was not as a result of popular demand by Europe’s people. It came about because Europe’s leaders believed their project had “never been in such danger”.

Last night most of Europe’s governments gave up a chunk of their sovereignty. In the future, tax and spending plans will be shown to European officials before national governments.

There will be automatic sanctions against those countries that overspend. A monetary union has moved towards being also a fiscal union.

At least, that’s the plan…

[Is it time to send for the Borg? – Ed]  It may be too late…

Adds  As ever, the Guardian is live-blogging the day’s events.