Back in the 1970s, when this was first talked of, Sir Donald McDougall, a senior Treasury official, was commissioned by Brussels to produce a report on “The Role of Public Finance in European Integration”. He warned that economic and monetary union could only work if Europe was in effect given an economic government, with the power to dispose of between 25 per cent and 40 per cent of Europe’s GDP. This was because, as he foresaw, one of the core problems would be that if weaker countries were deprived of the power to set their own interest rates or to devalue, they would require a massive injection of resources from richer countries. Which, of course, is just what we now see being acted out in the desperate efforts to bail out Portugal, following in the wake of Greece and Ireland – with Spain, bigger than all three put together, possibly to follow.