German politicians have their heads firmly buried in the sand. They were late to realise how vulnerable domestic banks were to the credit crisis and now seem to have missed the extent of the malaise in the economy. By refusing to contemplate a serious fiscal stimulus package, the government is not only harming Germany but also its neighbours. German consumers must be encouraged to go shopping to support the domestic economy as well as imports from abroad.

If German officials were instead to wait for exports – the main source of growth in the past – to pick up again, they would need to be patient as well as extremely thick-skinned. Most export markets are in recession or serious slowdown, and international pressure would mount as the burden of boosting the economy shifted to governments less well-placed. Nothing would be done to unravel imbalances between economies.