The drop is less marked than we were expecting, but this deterioration in confidence is nonetheless clear and comes very soon after the recent cycle of recovery, which is unusual.

We have already had strong July car sales, and now with consumer confidence this strong we get the impression households could repeat the spending spree we saw last summer.

The question is whether this has signed away the possibility of reform in the longer term.

I don't think they are too sad. This would have been a costly measure, with few benefits. The economy at least is better off without it.

I think it's a very good thing that they didn't go ahead with this, that they were blocked. I didn't think it was a good measure because they would lose revenue.

I don't interpret this as a sign of recovery in activity. Rather, the increase in unemployment of the last six to eight months has been too brutal and exaggerated not to generate this type of correction.