Angela Merkel on Tuesday gave instructions to the European Central Bank to stop quantitative easing. What central banks have been doing of late, she said, must stop now, or risk a repeat of the crisis. It was no slip of the tongue. Nor is the timing accidental. We are only a few days away from the European elections.

Ms Merkel, who has persistently underestimated the extent of this crisis, has reached the inevitable point where complacency gives way to panic. She is presiding over one of the world’s sickest banking sectors. German economic growth will shrink by some 5-6 per cent of gross domestic product this year. And even now, Germany’s policy establishment is frightened about rising budget deficits and inflation.