Because Europe's governments have signed away national control of interest rates, fiscal policy is the only tool to hand if the single monetary policy leaves their economies growing more slowly than they might, or faster than they can sustain without pressure on wages and property prices.

ECONOMIST: Europe grows apart

Since discretionary spending is the only sort that can be adjusted quickly to the state of the economic cycle, this will tend to make fiscal policy an even blunter tool than it already is.

ECONOMIST: Budget making

Mindful of its large public debt, Italy refrained from using fiscal policy as an active tool to stimulate the economy, and has managed to keep its budget deficit below the euro-area average (see left-hand chart).

ECONOMIST: Economics focus

You need growth to revive confidence, and the only tool capable of producing growth in this climate, the critics would argue, is fiscal policy - a lot more government spending.

BBC: Bank and Treasury's plan A-plus for UK