The drama of the European single currency has had more than its fair share of theatrical twists and turns. The prize for the most spectacular transformation in the long-running Folies Maastricht must, however, be awarded to the quaintly named Stability and Growth Pact. This character entered Act 1 as a strutting hero, but now - several years into the plot - has been unmasked as the villain of the piece, destined shortly to be skewered behind an arras and then hauled off into oblivion. The Pact's demise may dampen the spirits of euro enthusiasts, but it creates a chance for Britain to obtain more influence on European policies while maintaining its position outside the euro.
The dumping of the Pact - designed to shore up the euro by setting limits on budget deficits and government borrowing - has been accomplished by no less a personage than Romano Prodi, the president of the European Commission, who last week said it was 'stupid'.
