New Yorkers have been shocked to learn that commuter costs could rise sharply if new mayor Mike Bloomberg gets his way. While Rudy Giuliani, his beatified predecessor, was being knighted at Buckingham Palace in London, Bloomberg was sweating over his first budget statement. Living up to his election hype that he's a leader and not a politician, Mayor Mike included controversial plans to slap new tolls on popular crossings into New York, including Brooklyn and Manhattan Bridges. These bridges have been free for decades. Bridge tolls in the city can be up to $7 and judging by the shock-horror reaction to the plan it is the kind of move that could threaten Bloomberg's 68% approval rating. What's more, the former Salomon Brothers trader will have to come up with many more unpopular measures like the bridge tax if he is to tackle the city's yawning budget deficit.

The situation is bad. New York City is $42bn (&euro48bn) in debt. There is a $4.8bn budget deficit expected this year. There is already talk that Bloomberg might have to follow the principles of Argentine-style financial management by borrowing more to reduce the budget deficit.