By raising payroll taxes, Washington is pushing ahead with an austeritymeasure likely to inflict the most economic damage while producing minimal savings for the Treasury.
Greece and its private sector creditors have yet to agree on a plan to write down the nation's debt by 50% -- a measure austerity-hit Athens needs to secure additional bailout funds and avoid default on bonds due in March.
Although I am no fan of top down austerity, David Cameron earned an important measure of respect from me this week for empowering an arguably quirky approach to solving problems in a new and different way.
U. facilitates monetary, not fiscal union, and the bailout of Greece was sold as a temporary and exceptional measure, linked to Greek commitments to austerity measures.
But Labour's shadow chancellor Ed Balls said the measure would not be enough to help without the Government also changing course on its austerity plans.