David Cameron's decision to veto changes to the Lisbon EU treaty was received with delight among Eurosceptic Conservatives. But the prime minister's Lib Dem coalition allies were dismayed. Nick Clegg initially said the prime minister's demands had been "reasonable" - then declared himself "bitterly disappointed" with the outcome.
In the House of Commons, Ed Miliband sought to capitalise on any ill-feeling on the government benches. However, the Labour leader's performance at prime minister's questions was once again deemed by sketchwriters and tweeters as second-rate.
Joining Anne Perkins to discuss all this are Guardian columnist Zoe Williams; political columnist Gaby Hinsliff; and the Observer's economics editor, Heather Stewart.
The panel notes that while the coalition ministers have been squabbling and European leaders have been pointing accusing fingers at Britain, Europe's financial crisis is still short of a viable solution.
Also this week: as town centres and high street shops are declared to be "in crisis", the government turned to retail expert and television personality Mary Portas. This week Portas reported back that too much bureaucracy, parking restrictions and business rates were all contributing to a hollowing-out of small towns. But now Britons have got a taste for retail parks and suburban shopping malls, what will it take to get us back on the high street?
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