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Very Serious Europeans
From today’s FT:
In private, Italian officials say EU leaders are allowing their personal disdain of Mr Berlusconi to cloud their judgment over Italy – and, in the case of President Nicolas Sarkozy, who is facing re-election next year, disguising France’s own economic weaknesses.But they also realise that such views no longer cut any ice as markets increasingly lose faith in Italy’s ability to stop the Greek contagion from spreading.The extent of the concern was highlighted last week when Angela Merkel, the German chancellor, telephoned Giorgio Napolitano, Italy’s head of state, who is widely regarded as a pillar of respectability. According to leaks, Ms Merkel wanted to know if Mr Berlusconi was capable of implementing budget cuts and fulfilling economic reform pledges, and whether Italy had an alternative to take his place.Mr Berlusconi, who, according to diplomats, pretended to doze off during the weekend’s summit, has been given until the next meeting of eurozone leaders on Wednesday to come up with a convincing plan.http://krugman.blogs.nytimes.com/2011/10/25/very-serious-europeans/
