And Europe's stability and growth pact, so beloved of those who established economic and monetary union, has thrown fiscal policy in the euro area into disarray.

ECONOMIST: Not so rosy | The

"The primacy of the Budget as the main focus of fiscal and economic policy making should be re-established, " the MPs said.

BBC: Red Budget briefcase

By long-established convention, they have autonomy in domestic policy, including fiscal policy.

ECONOMIST: Offshore financial centres