It does not have to be that way. Italy’s political convulsions underline the need for Mrs Merkel to adapt her prescription. So far it has been a lot of austerity and some reform; it should be the other way round.
Deep recession and rising unemployment across the Mediterranean countries are triggering a popular backlash. Structural reforms continue to be essential if southern countries in the euro are to win back competitiveness and rekindle growth. But, given the voters’ response and the scale of recession, the pressure for continued fiscal austerity should now ease. Several countries—France is the most recent example (see article)—are expected to miss their budget-deficit targets this year. The European Commission should accept this if governments implement reforms. And northern members of the euro zone, especially Germany, should be readier to stimulate demand through tax cuts and spending increases.
The irony is that both of Italy’s clowns have got one thing right. Mr Grillo was right about Italy’s overpaid and corrupt politicians. Mr Berlusconi was right that austerity alone will not solve Europe’s crisis. Yet that does not mean Italians can run away from their predicament. If they continue to reject reforms, reality will catch up with them. Whatever the clowns may tell you, that is not funny.