It is almost impossible to overstate the importance of the French referendum on the European constitution for the future of the European Union. Last week, I argued that a No vote would bring the process of EU enlargement to an untimely end. But what about the economic consequences for the EU itself and the eurozone in particular? They may be even worse.

This is in spite of the fact that this is a poor constitution from an economic point of view. It favours stability and environmental sustainability over economic growth. It puts a higher value on protecting jobs than on creating them. It is a defensive constitution and, as such, reflects the muddled economic thinking of Europe's political classes.