Jim Hacker's European Conference shows no sign of solving the financial crisis that is threatening his fragile government. But salvation is at hand: Kumranistan is offering Europe a huge loan as an incentive to purchase their newly discovered oil reserves. What Sir Humphrey does not want Jim to know, however, is that there is a condition: Britain must join the Euro, which is against everything Jim believes in.

To begin with, it looks as if Jim has defeated Humphrey's scheme to get Britain into the Euro. But Bernard tells Humphrey he has found evidence of some dodgy expenses claims by Jim when he was in opposition. However, when Humphrey tries to use this lever, he discovers that Claire has unearthed some of his own equally dodgy expenses claims. So they come to a gentlemen's agreement, and Britain is saved from the Euro.