The European Commission is to start disciplinary proceedings against the UK for breaching its economic rules.
It says Britain's budget deficit, the gap between its spending and its revenues, is growing too large.
The disciplinary proceedings are in effect a formal warning to curb borrowing, cut spending or both.
The Treasury said it did not agree with the commission's assessment and asserted that the UK's public finances were sound.
The UK cannot be fined as it is not in the eurozone, but the launch of proceedings is unlikely to reflect well on the UK government.
The Commission is probably right, but I still think that the correct response is quite simple.