the ECB professes itself helpless in the face of 11.8pc unemployment, a post-EMU record and rising each month…Italian and Spanish companies still pay twice as much to borrow as German rivals. The North-South gap is becoming hard-wired into the system. He calculates that a string of states need drastic rate cuts this year under the classic `Taylor Rule’ or shortfall in potential output: 150 basis points for France, 230 for Holland, 240 for Ireland, 330 for Portugal, 350 for Spain, and 400 for Italy. For Greece, theoretically 1100, “no amount of easing would appear sufficient. You cannot cut below zero. That is why you do quantitative easing, a crude proxy.