27/11/2008 9:05:18 am
How To Stimulate? The European Commission has thus presented its 200-billion euro stimulus package. It is mostly a list of recommnendations to member states. But they tend to walk their own ways. Britain has decided to cut taxes generally (though raising them symbolically for high-income earners). France, on the other hand, will of course have a more dirigiste industrial policy of subsidies directly to French companies. The big question is which direction President Obama′s USA will take; the size of the package ($ 800 billion) already being set. General stimulus that don′t create distortions or protectionist subsidies of the 1970s? The choice will have an immense importance.