Different scenarios

In this special report about what could happen in Europe as a consequence of French and Dutch rejection of the constitutional treaty, the Guardian contemplates different scenarios for the coming years. In one of them, the EU rotating presidency "grinds to a halt when Malta takes over all EU business in second half of 2008". In case the European Constitution is ratified, future EU presidencies are to be run in groups of three as agreed by Member states. From the Guradian:

The Meltdown Scenario - What could happen?

Bitter recriminations after French and Dutch rejection of constitutional treaty, followed by domino effect of massive no votes in Denmark, Poland and the Czech Republic. Backlash leads to crisis of legitimacy in which member states demand renationalisation of policies now run by EU. French demand protectionism to keep out low-tax eastern European competitors. Refusal to recognise judgments of European court of justice. Sceptical member states vote massively to withdraw from union but seek to retain access to the single market.

The euro - Deepening recession in eurozone. Heavy political pressure on European Central Bank leads to sharp interest rate cut and loss of confidence followed by runaway inflation. Italian debt crisis triggers departure from single currency to adopt the "nuova lira", pegged to sterling, the Chinese yuan and the US dollar.

Leadership - Rotating presidency grinds to a halt when Malta (population 400,000) takes over all EU business in second half of 2008. US cherrypicks new coalition of willing Europeans, including Britain, Poland and Italy, to invade Iran to force it to abandon its nuclear ambitions...