French President Nicolas Sarkozy and German Chancellor Angela Merkel have apparently reached agreement on the way forward to stabilise the eurozone. In fact, a summit due to be held next week has been moved forward to the week after.

In fact, the two leaders are set to propose “important changes” and these will probably be put forward for discussion in the upcoming European Council meeting in two weeks’ time. They say that the aim was “closer and more binding economic and financial cooperation” between eurozone countries.

After two years and more of banging on the drum, this publishing house takes no joy in saying “we told you so”. We have always said that given the fundamental flaws in the original set-up of the eurozone, the only way forward was a centralised system which would see a central ‘Finance Ministry’ within the EU’s structures which would allow for integrated financial and monetary policy across the board.

After 30 months and more of failed solutions, crazy and not so crazy ideas, it has now become a cold, stark and clear reality. And when Mrs Merkel and Mr Sarkozy announce something like this, it will go through.

The two leaders say that they want to recapitalise Europe’s banks and that this would require between €100 and €200bn. But, there is a catch. It is believed that Mr Sarkozy wants to use the European Financial Stability Facility to recapitalise France’s own banks. Mrs Merkel says that this should only happen as a last resort. This newspaper goes one further and says “Not on your Nelly”.

It is clear, however, that the opposition to Mr Sarkozy’s ‘request’ is meeting stiff opposition from the German Chancellor because the French President has said that it was “not the moment” to go into the details of the agreement. He said that agreement between France and Germany was ‘total’, but we find that hard to believe.

The long and the short of it, is that this proposal by Mr Sarkozy ought to be resisted at all costs. France argues that it is a huge economy and the rest of the eurozone depends on its prosperity. But why on earth should countries such as Malta commit more money to the EFSF, only for it to end up in bank vaults in Paris? This is preposterous and presumptuous on France’s part. While Mr Sarkozy and Mrs Merkel will probably find support in beefing up Brussels’ role in national finances and policy, it is doubtful that anyone in their right mind would agree to allow monies from a ‘sovereign’ fund to go into French banks.

This all has to be taken into the context of the bailout of Franco-Belgian bank Dexia, which could have sent jitters down the spine in Paris. However, it seems that the governments of France and Belgium have drafted a rescue plan. Meanwhile, talks also featured the Greek problem, and talks continue in a bid to secure the release of more money to the beleaguered country. Greece is seeking the release of €8bn as its cash will literally run out by mid-November, meaning effective bankruptcy. This, of course, depends on the decision of the European Commission, the IMF and the European Central Bank. It all sounds like a round of stalling pending the outcome of the European Council.

No doubt, despite the complete pessimism and resentment among ordinary European citizens, the EC President and national leaders will emerge from dinner late at night, announcing yet another plan to bring Greece back in line. Will it work? Not until we have a European Finance Ministry.