It should have been obvious when the UK went its own way with the (non)adoption of the euro more than 12 years ago. Germany (and to some extent, France) wants to off-set inflationary pressures in its export-heavy, manufacturing-based economy -- largest in Europe and probably 4th largest world-wide.
David Cameron made an easy move declining to accept the larger European pact on granting the European Central Bank more control. What is interesting to me is the gradual move towards a model similar to the US model. Rhetoric from the recent meeting indicates many value an independent central bank; clearly the influence of Germany belays this. I am unclear how the EU will ensure the independence of the ECB when the Germans continue to obsess over austerity controls Europe-wide.
Unfortunately, this leaves Ireland to be buffeted by the gale-force winds of monetary policy managed elsewhere. Is this really a bad thing? If you view Ireland as a sovereign state within the EU maybe not. The greater size/influence of the EU, as projected through the ECB, will only come when the ECB is accepted by all members as governing monetary policy -- the way US states eventually gave in to a central banking model. When the Bank of the US folded, it was because too many foreign interests controlled the flow of money. The central bank model championed in the US early assisted in evolving America's economy into a more unified one.
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