‘A sign of weakness’

For months the Obama administration had been watching the eurozone crisis with frustration and mounting concern. Tim Geithner, the US Treasury secretary, and his team in Washington had tried to impart lessons learnt during their banking crisis – namely that only a huge wall of public money would calm panicked investors. Despite repeated high-profile European tours by Mr Geithner, and more discreet visits by his deputies, the Americans felt eurozone leaders still fell short.

In some quarters, the White House was suspected of playing politics. “The Americans had only one objective, which is fully understandable,” said one European who dealt directly with Mr Geithner. “The eurozone has to be saved because otherwise we’ll enter into a depression in Europe, and this will impact the economy of the US and my re-election.” US denials were not entirely believed in Europe.