The global financial crisis has led to a stark reappraisal of risk. Markets had ignored any chance of default for so long that their U-turn now looks more like a handbrake turn. Risk aversion has cascaded through asset classes: first came US subprime mortgages, then liquidity and solvency concerns around banks. Now government bank bail-outs have shifted attention to the creditworthiness of states.

As sovereign debt comes under scrutiny, small economies face huge pressure. Their best hope of escaping the turmoil relatively unscathed is to be in a club, bound together by explicit or implicit guarantees. That is why new clubs are in the making, while existing ones are seeing their popularity soar.