TEXT OF THE WEEK

: Mario Monti rekindles debate on quality of public spending recommending clear distinction between investment and operational spending, without amending the Stability Pact

The debate on the method of assessing budgetary deficits was rekindled with an interview that European Commissioner Mario Monti granted to an Italian newspaper. Some commentators (and even some ministers) interpreted his remarks as an invitation not to take investment spending into account when calculating deficits. In reality, text in hand, the Commissioner's position is more moderate. He considers one should take into consideration not only the quantity but also the quality of public...