The recent amplification of the US-bred financial crisis has produced at least one salutary if unexpected lesson. Europe has so far shown that it works in practice, even if it still does not do so in theory.

In the past 48 hours, various European countries have scrambled to put together bail-out packages for troubled financial institutions in Germany, the UK, France, Belgium, Ireland and Iceland. And while this is by no means the end of the story, it has demonstrated that the European authorities and individual national governments can move very quickly to try to stem a growing crisis of confidence in the European financial system.