If the worst fears of a severe global recession are realised, historians may look back and wonder why the region with the most scope to allay a downturn seemed unable to exploit it. The euro area's collective budget deficit was 0.6% of its GDP last year, according to the European Commission, a picture of health compared with America and Britain. On November 26th the commission unveiled a plan for a coordinated fiscal stimulus across the European Union worth €200 billion ($258 billion). It set out policies-temporary cuts in employment and sales taxes, more generous state support for the low-paid and jobless, and so forth-that might best give the economy a short-term lift. The proposals will be discussed at an eu summit in December, but the chances that they will be adopted in full seem slim.
展开▼
