Can the European Union agree a sanctions regime for Russia?

David Cameron talked tough on sanctions yesterday, suggesting that he had the German and French support. I believe he means what he says and is serious about following through with sanctions. I could even be convinced that France and Germany have hardened their positions to the point where they are genuinely willing to consider ‘stage three’ sanctions (which would hit specific firms and possibly sectors of the Russian economy). However, I remain far less convinced that the EU as a bloc can find a clear and united position – as Open Europe noted with its Dove/Hawk scale the divergences between countries are huge and the motivations for their positions is incredibly varied.

The UK Government is increasingly convinced of the need to inflict direct costs on the Russian regime as punishment for Vladimir Putin’s boisterous brand of Russian nationalism. It says that it is willing to stomach the potential collateral damage to the City of London (which in my view would