All our preconceptions and prejudices about the economy of old Europe have been confirmed in the last two weeks. Opposition by national governments to takeovers spread like wildfire through the European Union, from Luxembourg to Spain and then to France. In several EU countries, senior politicians raised the ghost of economic patriotism, seemingly oblivious to the single European market in which they once invested so much political capital.

But there is another story, less prominent, that sits uncomfortably with this narrative. Last week, Germany’s grand coalition claimed it had effectively solved the pension problem after deciding to increase the retirement age from 65 to 67. When the freeze on nominal pension pay-outs and the introduction of a private top-up scheme are considered, this adds up to a credible claim. It is also a significant achievement given that only a few years ago the pension system seemed destined to collapse. Other governments throughout the eurozone have also been reforming their social models with vigour. The cradle-to-grave welfare state is no more.