On one level, I am quite optimistic that Germany’s new centre-right government can deliver. When the coalition agreement is finalised early next month, we might actually see some tax cuts and structural reforms. I would also expect progress on sorting out the banking sector. This is the minimum needed to ensure a reasonable pace of economic recovery.

I am almost despairing, however, about what is happening at the eurozone level. Here, I fear that the new coalition may not make much difference to the quality of economic governance. The departure of Peer Steinbrück, the outgoing Social Democratic finance minister, will improve Germany’s financial diplomacy, no matter who replaces him. But in the end, I only expect improvement in style, not substance.