Fitch, the ratings agency that infuriated Europe yesterday by saying that the continent lacks the political and technical tools to save the euro, is right — at least for now.The latest European plan to fix the euro is already falling apart, just like all its predecessors have done. A majority of the French oppose it, and the man likely to be replace Nicolas Sarkozy in the spring 2012 election has said that it needs to be renegotiated. The countries that don’t use the euro are having second thoughts about turning over control of their national budgets to a European authority where they won’t have a veto; worse, they don’t want the Franc0-German bulldozer to use the excuse of the euro crisis to jam through a whole series of laws that would weaken the competitive advantages of countries like Poland, Hungary and Ireland.The Italians are already demonstrating their immense political gifts of evasion and avoidance; Mussolini wasn’t able to reshape the professional guilds, cozy local alliances and patron-client networks of Italian politics and Angela Merkel won’t get it done either. Many laws will pass and perhaps even a few treaties will be signed; little will change. You cannot nail jello to the wall; you cannot turn Italy into Bavaria.The mismatch between the requirements of the euro and the economic needs and political capabilities of the European Union is almost total. The euro desperately needs a quick political decision; the European Union cannot produce one. Countries like Greece, Italy, Spain and even France need significantly cheaper currency to help them manage their debts and launch a reform process. This the euro cannot provide.Angela Merkel is doing her best to herd the cats of Europe, but she is all too likely to fail. There are three ways to fail — and no clear way to win. She can fail by being too slow; at almost any moment a vast firestorm could break out in Europe’s financial markets that would require trillions of dollars in emergency TARP style funding and she and her partners could be unable to get and deploy the money fast enough to prevent the financial equivalent of a nuclear bomb. She can fail through failure — she can’t herd the cats well enough to get new set of austerity and discipline measures adopted. She can also fail through success: the treaties will be signed but they won’t fix the problems.At Via Meadia we are rooting for her to succeed, less because we admire the German vision for Europe than because we fear the consequences of a euroflop for the rest of the global economy. Perhaps the prospect of financial apocalypse will slowly recede while a lucky combination of Teutonic righteousness and Latin cleverness will lead to a compromise that splits the difference and gives Europe a workable fiscal union.Via Meadia advice to readers: hope for success and don’t rule out the possibility that things might all work out for the best, but batten down the hatches against rough seas and wild winds.