Germany, supposedly the model of European stability, fails to attract enough buyers for its bonds. The eurozone heads into a recession, possibly severe. Talk of a break-up of Europe’s monetary union intensifies. How much longer before the European Central Bank acts?

The Frankfurt-based ECB felt pressure intensifying on Wednesday to step up its response to the escalating crisis. Weak demand in a German debt auction may have had technical explanations but it hinted at rising investor aversion towards anything to do with the eurozone.

Meanwhile, weak eurozone purchasing managers’ indices for November and an unexpectedly sharp 6.4 per cent drop in new industrial orders reported for September, pointed to a possibly precipitous fall in eurozone economic activity in the last few months of the year – which would intensify strains on banks.