Things may be about to liven up a bit for Economics Commissioner Joaquim Almunia: it seems probable that the Italian deficit will be nearer 4% than 3% this year, and Portugal may even clock-in something of the order of an incredible 6 to 7%.

The worsening outlook in the two countries will rekindle the debate about whether they should have joined the single currency in 1999.

Germany had strong doubts during the 1990s about whether the economies of the ?Club Med? countries were ready. As part of the currency union, they are denied the traditional escape routes from economic trouble: devaluation or cuts in interest rates.

With their deficits already above the EU’s 3 per cent limit, neither government has scope to cut taxes or raise public spending.

Make no mistake: there’s a real and big problem looming here.