It is perhaps surprising to hear people such as George Soros demand that “Germany should lead” in saving Europe’s monetary union. Translated into German – Deutschland als Führer – this slogan has something of a frightening ring.

Germany is not only the biggest economy in Europe, it is also the best performing – and it would be in everyone’s interest if the country led by example. Unfortunately, it may be undermining its economic dominance by undoing past reforms and reinforcing labour market regulations. It is perhaps not too pessimistic to argue that the time will come when Germany’s economy is no longer the subject of envy.

At present, the argument for German leadership boils down to a plea that it should put more and more money on the European table. Yet the principle that there should be no bailouts is fundamental in a union of countries that share a currency but remain sovereign when it comes to public finances.