Plan A preferred by the Merkel/Sarkozy coterie is fiscal union for the entire 27 nations, although they both profess that (for the moment anyway) they only want to see this for the seventeen Eurozone nations. (This is the usual strategy for any changes in the EU. Start with something you think you can get away with. Then expand it by stealth under the guise of a “minor change – not much different to what we currently have”).
This would involve complete fiscal control from Berlin (ostensibly via Brussels) of all the member states. They would have to have their budgets “approved” by EU representatives who will have power of veto over their spending. Each of their spending departments would have a resident EU inspector presiding over its spending. There would be a range of “punishments” available for those nations who transgress by breaking the approved plans.
My own plan A would be for the Eurozone to break up entirely and for each member state to revert to their own individual currencies, thus sparing us any further lunacy. If the EU (or more accurately Merkel/Sarkozy) continue to fanny about as they have done for the past two years this will come about sooner rather than later. Their Plan A will simply take too long to put in place and time is now of the essence. Yes, it will be very painful, but infinitely preferable to the current “death by a thousand cuts”.
My own plan B would be the Merkel/Sarkozy Plan A. The UK would then be forced (under legislation recently passed) to hold a referendum and if UK voters vote in favour of the Franco-German plan, then they deserve all they will undoubtedly get.