Ed Balls is as mesmerised by the bankers as George Osborne | Simon Jenkins

Austerity has lost its credibility everywhere but London and Berlin. The shadow chancellor missed a golden opportunity

Europe is afflicted with the worst economic catastrophe since the second world war. Half the young people of the Mediterranean basin are reportedly out of work. Roughly 15% of productive capacity stands idle. Nation states are saddled with debts they cannot possibly repay. Austerity policies make the debts worse as they stifle growth. Economics is in intellectual lockdown.

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