I have a debate on Tuesday in Parliament on the topic of political union. I want to draw more attention to the 5 Presidents' joint policy statement of how they intend to create a political union out of the EU and Eurozone.

It is high time the BBC followed this, and the UK government made their response to this revolutionary and important document known.

The ambition of the document is clear. They seek a Euro Treasury. They want detailed control over a wide range of economic and business policies in every Euro state.

They want a political union to back their currency union. They imply a transfer union despite German objections.

The document envisages future large transfers of power, just as we are seeing in Greece already. The document says nothing reassuring for the UK as a non Euro member. The UK has to understand this vision, and work out a new relationship for us to live and work alongside it but not to be dragged into it.

That is the purpose of my debate, to stress the urgency and to see how the government will protect our democracy from this latest assault.

As the document says:

“Progress must happen on four fronts: first, towards a genuine economic union that ensures each economy has the structural features that prosper within the monetary union.

"Second, towards a financial union that guarantees the integrity of our currency across the monetary union and increases risk sharing with the private sector. This means completing the Banking union and accelerating the Capital Markets Union.

"3rd, towards a fiscal union that delivers both fiscal sustainability and fiscal stabilisation. And finally, towards a political union….”

This will inevitably involve sharing more sovereignty over time…it will need to shift from a system of rules and guidelines for national economic policy making to a system of further sovereignty sharing with common institutions, most of which already exist…”

All this is a sensible prospectus to try to build a successful single currency.

There are three problems with it. The first is they want to use the EU, when two members of the EU are not going to join the Euro and seven others are not yet in it. That requires a different political architecture.

The second is they have already created the currency, which is greatly stressed by not having proper political and transfer arrangements to back it up.That means they are in a tearing hurry on what are very sensitive and difficult matters.

The third is that Germany is still reluctant to pay her share of the bills in the way richer parts of a currency union do elsewhere.

It is time for the UK to explain why we need a looser relationship with the EU, as the Euro area takes the rest on a wild ride to political union.

Mr. Redwood's writing is re-posted here by his kind permission. This and other articles are available at johnredwoodsdiary.com