Conn pointed earlier to this fascinating piece in the Washington Post on a broad shift in European politics. Nation-states that have for decades guaranteed multiple cradle-to-grave benefits for citizens of all incomes are beginning to realize that they can only pay themselves as much as they earn.

We have already seen this in Greece and Spain, whose left-wing governments have been forced by economic and fiscal reality to enact massive cutbacks. The Spanish are even trying to get out of billions in contractually promised electricity subsidies, which they might not be able to do legally. We have seen this same phenomenon in Portugal, except that there were insufficient numbers in parliament willing to accept reality and make needed cutbacks.