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Let’s stress-test governments – for our children’s sake

The authorities are right to test financial institutions. But would a similar exercise on governments show that too many are putting an unfair burden on future generations?

Let’s stress-test governments – for our children’s sake

It was the taxpayers of Europe who sat in judgment on the continent’s banks in the stress tests the results of which were reported in October.

The tests were conducted by the European Central Bank and the European Banking Authority, but the agencies were acting on behalf of the collective sovereign, which expected the chastened institutions that "failed" the tests to take remedial action. Many of the "failures", of course, protested that they had already mended their ways.

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