Italy plunged deeper into political chaos this weekend after Beppe Grillo, the quixotic former comedian who holds the balance of power in parliament, suggested that the country may have to abandon the euro and return to the lire.
Not quite that Italy will have to abandon the euro though. Rather that it is the most sensible thing to do among the available choices. And the sooner the better quite frankly.
Over and above that what the country really needs is a proper supply side revolution. No, not the tinkering with marginal tax rates which is the American version of “supply side”. But a proper reorganisation and deregulation of the supply side of the economy. There are simply too many rules and regulations preventing new companies from starting and growing to any size.