From the Financial Times:
Promising to bail out countries is exactly the wrong solution. It creates no incentive to control spending in countries facing financial problems.
The measures included a plan to amend the constitution to make a balanced budget mandatory, a second constitutional change that would force “closed professions” to liberalise services, a speeding up of welfare reforms, and other structural reforms designed to boost Italy’s stagnant economy. . . .
The German government has already firmly dismissed a proposal from José Manuel Barroso, president of the European Commission, for an increase in the size of the €440bn European financial stability facility – the eurozone rescue fund. Philipp Rösler, the German economy minister and vice-chancellor, described the proposal as “ill-timed”. . . .
Promising to bail out countries is exactly the wrong solution. It creates no incentive to control spending in countries facing financial problems.
Italy moves to adopt balanced budget amendment to constitution
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Oleh
abudzar
