Germany is now in its third consecutive year of economic stagnation. The United Kingdom, grappling with persistent inflation and a public deficit nearly as large as France's, is facing renewed pressure from financial markets, with the most alarmist economists even warning of a potential bailout from the International Monetary Fund (IMF). Meanwhile, France is sinking into a major political crisis and could end the year without a budget. In a pointed comment on RTL radio on Friday, October 10, the governor of the Banque de France, François Villeroy de Galhau, summed up the prevailing dismay over France's political upheaval: "France has traditionally been the locomotive of Europe. Today, it is the caboose."

The continent seems to be suffering because of its larger countries. Once the leaders of Europe, they have become examples of what not to do, even if their crises are very different. Their difficulties contrast with the rest of Europe. "The eurozone [which includes 20 of the 27 member states] is expected to see growth of about 1.3%-1.4% this year, while Germany is nearly in recession and France is recording weak growth," said Michel Martinez, chief European economist at Société Générale. "This means the rest of Europe is doing very well."

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