Just a reminder: the Stability Pact contains provisions for suspension of parameters in exceptional circumstances. Nobody made presents to anybody. The problem with the SGP is in normal times. 1/
During the crisis every country will spend as much as it wishes, and the ECB should cover them ALL from market speculation. A sensitive political agreement will have to be found to deal with the legacy of the crisis 2/
In other words, we should not be afraid of stupidity during the response to the crisis, but of the austerity that many will try to impose afterwards. Remember not 2009, but 2011-13. 3/3
