An expat's view: politics, economics and life in Italy, Britain and other places.
29 September, 2010
The European Union, in a brilliant response to the problem of countries running excessive deficits proposes to...er.. fine them. Countries which haven't got any money will have money taken away from them. So their deficits will be worse.
Jose Manuel Barroso, President of the Commission, said this would be "a sea change in the way economic governance is dealt with in the European Union".
It seems to be a sea change from common sense.
The commission insists that 3% is the maximum level of deficit which can be permitted.
Current deficits are: Germany 3.3%, Italy 5.3%, France 7.5%, Spain 11.2%