Greece benefited greatly from accession to the single currency. Borrowing costs fell when it joined the euro, the economy powered ahead at an average clip of about 4 per cent a year and Athens reaped large transfers from Brussels. The possibility that the government, with its one seat majority, might fall following the worst riots in decades has exposed the fragility of national politics. But the Greek economy has since developed deep fault lines too.

Like Spain and Ireland, Greece enjoyed a credit boom. House prices rose, on average, by 10 per cent a year between 2002 and 2006 – not as fast as the 15 per cent rate in the UK, but still high. Consumers took on debt, as did companies. Inflation also remained stubbornly high, steadily eroding competitiveness. Largely as a result of this, the current account deficit exploded to 14 per cent of gross domestic product last year, the largest in the eurozone.