The euro crisis has receded, leaving behind quite a lot of egg on (mostly) Anglo-Saxon faces. For much of 2012 the air was thick with predictions of imminent catastrophe. Brits and Americans were in the vanguard of the gloomsters. In the event, reports of the demise of the single currency proved greatly exaggerated.

The most ardent europhile would struggle to argue that European governments have met all the big economic tests. The continent still boasts precious little growth, chronic unemployment and a pile of public debt. The banks are in far from rude health, and there are political battles aplenty ahead. That said, finance ministers no longer spend every waking hour checking the spreads on sovereign debt. Private funding is flowing back towards the periphery.

It is worth exploring where the pessimists went wrong. The answers provide a clue as to the future architecture of the eurozone and the political shape of Europe.