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Europe’s leaders need to back shift on rules on public investment

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As European leaders meet in Milan today to discuss growth and employment, they should try to understand and address their divergences rather than burying them in joint declarations full of lip-service to their common determination.

Three years ago, the euro risked exploding under pressure from the markets. After considerable initial tensions, national governments – in particular those of France, Germany and Italy – worked closely together and reached landmark decisions in the European Council of June 2012.

The European Central Bank found those decisions convincing enough to justify a more accommodating stance.

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