Germany

It would only encourage irresponsible lending. Deficits would run out of control. The rules of the single currency would be undermined, and voters would lose faith in the euro. Over the last few years, the Germans, the European Central Bank, and the EU itself, have been adamant that banks shouldn’t be bailed out inside the eurozone. Along the way, Greek, Cypriot, Italian and Irish banks have all been allowed to go to the wall or squeezed to extinction. But hold on. There seems to be an exception to that austere financial regime. Big German banks. With the once mighty Deutsche Bank in serious trouble, it turns out there is nothing wrong with the government orchestrating what amounts to a rescue after all.

What can the EU do to help the Britons out of their Brexit quagmire? Until very recently, the answer would have been ‘little, if anything’. There is a deal on the table, which Theresa May herself pronounced to be non-negotiable. Well, parliament directed her — and by implication, the EU — to think again and to reconsider the vexed question of the Irish backstop. Does anybody on either side of the channel really want to wreck the future relationship between the UK and the EU over the unsolved issue of the Irish border, as well as risk creating renewed enmity along it? God forbid.

German political leaders, industrialists, artists and sportspeople wrote to the Times last week urging Brits to reconsider and stay in the EU. The letter was a mixture of gratitude that Britain had been willing to let Germany rejoin the ranks of civilised nations after the horrors of war, and a rather patronising list of the oh-so-adorable British quirks and foibles: our black humour, our curious habit of drinking tea with milk, drinking ale, driving on the left and pantomimes. But what really struck me was that, for all the warm words, there was no recognition that modern German politics might have played a role in Brexit, let alone a hint of contrition.

Matteo Salvini, Italy’s deputy prime minister and interior minister, is one of the most controversial politicians in Europe. The 45-year old chief of the League party exudes a down-to-earth demeanour with his common-man social media posts, in which he shares pictures of himself eating Barilla pasta and Nutella. To his many opponents, Salvini is a thick-headed, semi-fascist ideologue who wants to turn back the clock and return Europe to a dangerous form of nationalism. But to his supporters, in and out of Italy, he is a straight-talking, no-nonsense defender of his country's sovereignty against the northern elites in Berlin and Brussels.

It is impossible to overstate Angela Merkel’s significance, to Germany, to the EU, and to Britain. Others are better qualified than me to talk about the first two of those, but as she announces her (slow, deliberate) departure from office, I offer a thought about Merkel and Britain, which is that the modern history of Britain’s European policy has been a story of misunderstanding Angela Merkel, and therefore Germany. This story starts in 2005, when David Cameron stood for the Tory leadership. As a moderate, he was keen to woo the Right, especially on Europe. So he promised to pull the Tory MEPs out of the European People’s Party grouping in the European Parliament.

There was a time not too long ago - less than three years to be exact - when German Chancellor Angela Merkel was at the very top of her game. She dominated German and European politics for over a decade with her clear, effective, but cautious leadership, watching as the German economy solidified its place as Europe’s economic engine. When Merkel decided to open Germany’s doors in August 2015 to hundreds of thousands of refugees fleeing war and persecution in Syria, she became much more than the steward of Berlin’s economic power - she transformed overnight into the moral beacon of the European continent.

Why do the British turn to the Germans in their moments of European trouble? It never works. When Jacques Delors conceived his single currency plans, Mrs Thatcher over-relied on Karl Otto Pöhl at the Bundesbank to squash them. Dr Pöhl preferred to side with Helmut Kohl. When Britain was struggling to stay in the ERM in the late summer of 1992, the Major government put faith in what they thought were German promises to help them out. These failed to materialise. When David Cameron sought a new EU deal which would win him the 2016 referendum, he placed his greatest hopes in Angela Merkel, who offered him concessions so feeble that even he quickly gave up trying to sell them. Last week, Mrs May flew to Berlin.