Five months is a long time in Italian politics. Back in June, we observed that Italy was too big to fail, but also too big to bail. We were also waiting for the almost inevitable clash with the European Commission over the budget. That has now arrived and we have started trading Italian risk in the new higher range for spreads.
* (Bubbling Tensions in Politics)
Without immigration, Europe's population is set to decline by around 10% over the next three decades. Japan's experience serves as a warning about the difficulties of managing public finances and expanding corporate revenues against that backdrop. So is Europe's situation sustainable?