One of the basic theoretical shortcuts for helping to analyse music is that when looking for modulations, isolate the 7th chords. If these chords form a V7 to I (e.g. G7 to C) or V7 to VI (e.g. G7 to Am), then the music has been temporarily modulated.
Often such temporary modulations occur so quickly that there is no accompanying (pun not intended but I like it) feeling that a modulation has occurred.
So with the above couple of thoughts in mind, my take on this is...
At the end of this progression we see "D7", if the next chord is "G" then a V7-I progression has occurred and the music in the subsequent section that's not provided is indeed in the key of G major (or G minor if the chord following D7 is Gm -- this is still a I-V progression in a minor key).
Now for the chord progression...
For ease of reference, I'll ignore the 7s and just look at the major/minor chords.
If I consider E as a tonic (i.e. E = chord I), Then the first four chords E-F#-B-C is a I-II-V-bVI progression.
Now if the C chord is a pivot chord and it becomes chord IV in the key of G (i.e C changes from bVI in the key of E to IV in the key of G) , we have the progression C-A-D-Eb expressed as IV-II-V-bVI. A pattern of II-V-bVI now seems to be emerging... let's continue and see what happens
If the C (second line of chords, chord #3) now starts out as IV in the key of G major and changes into into bVI in the key of E major (i.e. it's another pivot chord), we have the chord progession C-B-E-F#-B-C (in the key of E major) as bVI-V-I-II-V-bVI.
So it looks like the above progression revolves around a II-V-bVI progression in the keys of E and G major with chord II being the major chord rather than the usual minor chord that's found on the second degree of the major scale. The C chord seems to be the pivot chord that allows transition between keys.
So below is a picture that I hope summarises my interpretation (the chords with asterisks seem to be pivot chords -- that is they straddle two keys and allow for a change from one key to another)...
Just my thoughts.... I could be totally wrong! Noel
P.S. Here's a pretty good article on using bVI chords in music.
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