Grave concern

22 July 2011 Last updated at 00:24 GMT By Thomas Doerfler University of Goettingen, Germany On Wednesday 20 July 2011 - the anniversary of the attempt on Hitler's life in 1944 - the public was informed that the grave of Rudolf Hess, the "Fuehrer's deputy", had been razed before daybreak.

Beyond the fascinating coincidence in the date - there will surely be further speculation on this - the decision by Hess's heirs was surprising.

They wanted to commit his mortal remains to the waves and organise a funeral at sea for a man whose mystique and influence on the far-right was strongly linked to the existence of his grave in the Bavarian village of Wunsiedel.

He was already one the most interesting figures in post-war Germany, being the only high-ranking Nazi serving a life sentence imposed by the Nuremberg war-crimes court - Albert Speer, for instance, was released in 1966.

'Anti-German plot' Hess owes his ambiguous fame to the circumstances of his death. He was found hanged in a summer house in Berlin's Spandau Prison, where he had spent the previous 20 years.

The official version - contested by right-wingers of all stripes - was that he committed suicide to end his long imprisonment.

For the German and international far-right movement, this was clear evidence that the powers that be had tried to suppress the truth about an "anti-German" plot dating back to the war years.

According to this version of events, the Allied forces - notably the British secret service - ignored the true purpose of Hess's flight to Britain in 1941. He was taking a peace plan to Churchill, he told his interrogators.

This idea made Hess the perfect figure to portray the Nazis as victims, rather than aggressors.

Britain had started World War II to destroy Germany, and Hess was captured in Scotland to crush the peaceful intentions of Nazi Germany.

Even the fact that Hitler declared him insane did not dent this legend.

Revitalised myth The place where Rudolf Hess's grave once stood has been levelled

Moreover the resurgent Nazi scene in recent years has gradually recognised the potential of this myth to attract young people susceptible to tales of injustice.

What started as a tiny demonstration of a handful of Nazi activists in the 1990s had turned into thousands regularly filling the streets of Wunsiedel by early 2000s.

Everybody who looked at such scenes - including myself and my academic colleagues - felt uncomfortable. Most of the demonstrators were young and dressed like average heavy-metal kids - until you looked at their T-shirts and tattoos.

The Hess myth, modernised to satisfy a desire for victimhood, made the Wundsiedel commemorations alluring to young people. But it also led the Constitutional Court to ban the event in 2005, as the potential for the recruitment of new blood into the Neo-Nazi movement got increasingly obvious.

However the court order had limited effect on such gatherings, which continued less frequently and at a smaller scale elsewhere. But then Hess had become a kind of right-wing Che Guevara, with his portrait on shirts, buttons and posters.

Continue reading the main story 1894: Born in Alexandria, Egypt1914-18: Serves during WWI, ending war as lieutenant1920: Joins Hitler's fledgling Nazi party1923: Imprisoned with Hitler and becomes his secretary1933: Becomes Hitler's deputy after his rise to power1941: Seeks peace with Britain by flying solo to Scotland; detained in Britain1946: Convicted of crimes against peace at Nuremberg Trials and given life sentence1947: Transferred to Spandau Prison in Berlin1987: Found hangedIn the end the family agreed to terminate the lease on the grave.

Thus an event that many would have thought highly improbably until now became reality on Wednesday evening. What might be the consequences of this startling decision?

Nazi zombie

Firstly, it is no coincidence that the relatives and officials chose to eliminate every physical trace of a figure with a vast potential for creating right-wing legends.

As was the case for Osama Bin Laden some weeks ago, the authorities understand the power of a permanent shrine to a highly controversial figure.

It becomes a place of pilgrimage, a focus for irrational and uncontrollable worship.

Secondly, the far-right movement has lost a crucial place embodying myths and legends that give it a friendly face. The neo-Nazis desperately need to celebrate the memory of an attractive "hero" for the benefit of new recruits.

And thirdly, there will be an increased potential for violence of all kinds - from street unrest to digital stalking - by the far-right.

Deprived of a leading rallying figure, the movement will feel that its noble tradition has been humiliated by unjust powers yet again.

Ultimately it is possible that a renewed cult could rise again around Hess, the ultimate Nazi zombie.

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N Ireland police sorry for wedding blunder

22 July 2011 Last updated at 16:42 GMT Yanan Sun and Neil McElwee's wedding was stopped by police A Castlederg man has rejected an apology from the police after they interrupted his wedding on suspicion it was "a sham marriage".

The police wrongly arrested Neil McElwee and his pregnant fiancee, Yanan Sun, moments before the ceremony at the Guildhall in Londonderry on Tuesday.

Chief Inspector John Burrows said the police had acted in good faith, but sometimes they got things wrong.

Mr McElwee said "sorry" would not make up for the distress caused.

The couple were taken to a police station, forced to dress in forensic clothing and separated.

They were held for five hours and only released when their solicitor got involved. They were married the next day in nearby Castlederg.

The police told the couple they were acting on an anonymous tip-off.

They have accepted that they made a mistake and have apologised.

'Mess-up'

However, Mr McElwee said: "It just doesn't add up - something on that scale based on an anonymous letter and some paperwork faxed through about two hours before the wedding. It just doesn't happen like that.

"So there's a lot of questions that need [to be] answered and there's a lot of people responsible for this mess-up.

"An apology? It's just no good - apologies won't give us our day back. It won't make everything better."

Mr McElwee's solicitor Karina Breslin Carlin said: "I do have concerns that the Borders Agency have taken the view here, that if it's alleged this is a sham marriage, it's a great opportunity to go into this wedding ceremony and see how many Chinese nationals are there who may not have the correct paperwork in order.

"You can't replace a man's wedding day, you can't replace a bride walking in on her wedding day to assembled guests. They will never get that moment back, they'll never get those memories back."

One wedding guest has been referred for deportation.

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Sanchez joins Barcelona for £23m

Sanchez, 22, was voted Serie A's best player last season

Alexis Sanchez is set to join Barcelona from Udinese for a fee of ?23m, which could rise as high as ?33m.

The Chilean winger, who will undergo a medical on Monday, has signed a five-year deal with the La Liga and Champions League holders.

Sanchez, 22, was voted Serie A's best player last season having scored 12 times in 31 games.

Sanchez, who has 40 caps for Chile, signed for Udinese in 2006 from Chilean side Cobreloa.

Should the deal reach the maximum ?33m, it will be Barcelona's second most expensive signing having paid Inter Milan ?40m for Zlatan Ibrahimovic in a move that saw Samuel Eto'o move in the opposite direction.

"Sanchez is very young," said Barca coach Pep Guardiola.

"He can play in all three attacking positions, he shows intense defensive skills, he's direct and from what I've been told, he's a very nice kid."

Sanchez was the subject of a bid by Manchester City last month but, despite the Chilean being open to a move to the Etihad Stadium according to boss Roberto Mancini, City withdrew their bid.

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Sponsorship cycle

13 July 2011 Last updated at 23:01 GMT By Alex Murray BBC News The Tour has had a chequered time in recent years The Tour de France has witnessed glory and scandal in almost equal measure over its 100-year history.

The legacy of the period between the early 1990s and mid-2000s - when doping was allowed to become endemic in the sport - is still being felt today.

Despite efforts to escape this past, it is still hitting the headlines for the wrong reasons.

Earlier this week Russian Alexandr Kolobnev denied any wrongdoing after testing positive for banned diuretic hydrochlorothiazide on the Tour.

'Concern'

"The sport is still in a state of transition." says Prof Simon Chadwick, expert in sports marketing and business at Coventry University.

"That's reflected in the relatively benign values for cycling team costs and sponsorship deals, because there is still a concern that any time a scandal might break and it may have ramifications for the sponsors involved."

But for Bob Stapleton, owner of Mark Cavendish's HTC-Highroad team, this should be seen in the context of a wider downturn in sponsorship values.

"Ten to 15 million euros goes a long way, when before it was more like 25 to 50 million," says Mr Stapleton.

He says outside major sponsorships such as Manchester United, prices are down substantially.

Bob Stapleton of HTC-Highroad says sponsorship values have fallen

When Gerard Vroomen's bike company, Cervelo, moved from being a bike supplier to team sponsor in 2009, it took advantage of the tough climate to sign Carlos Sastre, winner of the 2008 Tour, as their star rider.

"When we started our own team, it was the lowest point, but that also made it possible to have a modest budget and a really good team," says Mr Vroomen.

"Despite all the upheavals in the sport, the return for sponsors has remained very good."

He says while cycling viewership is stable or up in most areas, it has become less expensive to invest in, and thus a good investment.

Merger

The Cervelo Test Team had a strong ethical stance on doping and a modern approach to marketing themselves.

The merged Garmin-Cervelo team has had a good start to the Tour

But that was not enough to attract a title sponsor and at the end of 2010, they merged with Garmin-Transitions, another team strongly identified with efforts to clean up cycling's image.

As Garmin-Cervelo they have enjoyed a hugely successful start to the Tour, providing a great boost for their team's sponsors.

'Image' issues

Mr Stapleton admits finding sponsors is a challenge.

"Image is a part of it, economy is a part of it, but those aren't excuses either, we have to find our way to success," he says.

He took over one of the biggest teams, T-Mobile, at a difficult point and made it one of the most successful - but change has not been easy.

T-Mobile withdrew as a cycling team sponsor at the end of 2007

"There were a number of investigations into the team, and their flagship rider, Jan Ullrich, had been withdrawn on the eve of the Tour in 2006. For them that was the make or break point," says Mr Stapleton.

T-Mobile withdrew backing at the end of 2007, leaving Mr Stapleton, a telecoms entrepreneur, to complete his transformation of the team.

He reformed the team around the sport's "best practice" and changed it from being a "very national German-centric team to being truly international, both in athletes and management".

There are now 20 nations represented in the team, mirroring its new multi-national marketing, which has seen it provide a European presence for US outdoor lifestyle firm Columbia.

"HTC is a very international company that wanted to increase their brand awareness worldwide, but particularly in Europe," he adds, referring to his current title sponsor.

Despite this success, he admits that in challenging economic times "there's been a shift to safe, conservative sponsorships that are not going to cause you any problems and you're not going to get criticised about".

'Kept faith'

To highlight these sensitive points, there have been continued media stories about defending champion Alberto Contador and seven-time winner Lance Armstrong.

Contador tested positive for banned substance clenbuterol on the second rest day of last year's Tour.

He was cleared of wrongdoing by the Spanish federation but the International Cycling Union (UCI) and the World Anti-Doping Agency appealed against the verdict.

A Court of Arbitration for Sport decision is due in August.

"If Contador was to win and then be disqualified, the UCI would be incredibly exposed commercially," says Prof Chadwick.

"It's incredibly reliant on partners who have kept faith and trusted that the bad days of doping are over. If Contador was disqualified, then the bad days aren't over."

Seven-time winner Armstrong has retired to find himself facing a US federal investigation into allegations of doping, which he consistently has denied.

But the cyclist tweeted in May: "Never a failed test. I rest my case."

'Exciting personality'

With Armstrong's immense presence no longer around, Mr Stapleton recognises a single name - such as Mark Cavendish - is not enough to grow the sport.

There are calls for cyclists such as Mark Cavendish to fill the gap left by the retired Lance Armstrong

"Cavendish is a good example of what we need - a new credible, exciting personality," says Mr Stapleton.

"I'd love to see a half dozen guys like that because I don't think a single dominating figure is enough."

While the sponsor picture for teams can be volatile, the Tour organiser ASO has attracted deals from global companies.

Nestle's Vittel water and Skoda - part of Volkswagen group - are top-tier sponsors, with a highly visible race presence their reward.

Recently Qatar Airways signed an agreement as an official race supplier, joining a list that ranges from sweets (Haribo) to gas products (Antargaz).

'Taking a lead'

However, another cycling body, the UCI, has faced repeated claims it has not driven change in the sport, limiting its growth.

Continue reading the main story

The Tour has kept it's value because it's your same three weeks in July, the date doesn't change”

End Quote Gerard Vroomen Co-founder Cervelo Cycles "What we have seen in cycling, it's the individual teams that have instigated the rebrand," says Prof Chadwick.

"In reality it should have been the governing body that was taking a lead."

Mr Stapleton agrees, saying there is "no reliable platform" for sponsors to put their money into.

"They want to know they are stepping into a very well-managed sport with a high level of professionalism," he adds.

But he believes the governing body has not developed the sport's commercial interests in a "predictable and safe way". Nor, he feels, has it established a level sporting playing field.

"Our governing body has struggled with that on both dimensions," Mr Stapleton says.

'Enthusiasts'

But Mr Stapleton does see the sport's participation rate as a plus.

"It's a massive participation sport, 160 million enthusiasts in the US and Western Europe alone. You're marketing to people in a sport they actually do."

And Mr Vroomen sees a broader cultural change, with cycling participation on the increase, which may help bring the money and propel it back into the top tier of sports.

"It's a reflection of the focus on health, obesity and transportation," he says.

"The Tour has kept it's value because it's your same three weeks in July, the date doesn't change.

"The events are so powerful, there's so much history there, you can't kill it."

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Eight banks fail EU stress test

15 July 2011 Last updated at 19:34 GMT Banks both inside and outside the eurozone were tested. Eight out of 90 European banks have failed stress tests designed to ensure they can withstand another financial crisis.

The European Banking Authority (EBA), which carried out the healthcheck, said another 16 banks were in the danger zone.

The EBA called on national financial regulators to ensure that capital shortfalls would be quickly resolved.

Five Spanish banks failed, as well as one in Austria and two in Greece.

On Wednesday, Germany's Helaba pulled out of the stress tests, effectively making it the ninth bank to fail.

Eight banks named

In Austria, the Oestereichische Volksbank failed the test, while in Greece two state-controlled banks - ATEbank and EFG Eurobank - fell at the hurdle.

In Spain, Catalunya Caixa, Pastor, Unnim, Caja3 and CAM failed, with seven others just scraping through the test.

Continue reading the main story

Banks will be under pressure to build their capital buffers, regardless of how they fared in the stress test”

End Quote Jason Karaian Economist Intelligence Unit However, Bank of Spain governor Miguel Angel Fernandez Ordonez said there was no need to inject further capital into the banks as the sector was already undergoing a fundamental restructuring.

The EBA added that 16 banks only just passed the tests. All the banks should "promptly" take steps to strengthen their financial cushion, the EBA said.

After the EBA announcement, the Bank of Portugal said two of the country's banks would immediately begin bolstering their finances.

Banco Comercial Portugues, the country's largest listed bank, and Espirito Santo Financial Group, will strengthen their balance sheets within three months.

Debt-heavy Portugal took a 78bn euro (?68bn) bail-out earlier this year. Its economy is forecast to contract 4% over the next two years.

The news came just as Italy's parliament approved a 70bn euro austerity package. The country's central bank said that all Italian banks had passed the tests with "an ample margin".

Default

A key benchmark for passing the test was whether the banks have at least 5% "core tier 1" capital, which describes the best form of capital a bank can hold to make up any losses.

One analyst told the BBC that, while some people would find the results reassuring, others would see them as evidence that the tests were not credible.

He said that demands from the financial authorities that banks began immediately to bolster their core capital "is an acknowledgement that there is a risk of sovereign default".

The failed banks would have to find an estimated 2.5bn euros in new funding by the end of the year, he said.

German bank Helaba disputes the way the authorities carried out its assessment

But analyst Jason Karaian of the Economist Intelligence Unit said that the total extra funding needed by banks would be far higher in the long run.

"Given that the markets are rewarding safety and security over growth and risk, banks will be under pressure to build their capital buffers, regardless of how they fared in the stress test.

"In the end, it would not be surprising to see hundreds of billions of euros raised in the coming quarters, with the most frenzied activity centred on banks with the greatest exposure to the euro area's wobbly periphery," he said.

As expected, the four UK banks passed the test - Royal Bank of Scotland, HSBC, Barclays and Lloyds Banking Group.

The Financial Services Authority said: "The results support our own stress tests and we are pleased that the major UK banks have capital above the minimum required in the test, reflecting the work we and the banks have undertaken to improve resilience since the crisis."

Stringent

The tests are a key element in fighting Europe's debt crisis, intended to identify weak banks and ensure they are made robust enough to survive a possible default on government bonds by heavily indebted countries such as Greece.

However, the tests did not consider the impact of Greece defaulting, something some analysts believe is increasingly likely.

There have been concerns, including from the ratings agency Standard & Poors, that the tests were not strict enough. However, the EBA said they were more stringent than those it carried out last year.

In 2010, both Irish banks tested, Bank of Ireland and Allied Irish Bank, were given a clean bill of health. But just months later, AIB needed a government bail-out.

Each country's national banking regulators carried out a test that simulated what would happen to a bank's finances during a recession where growth falls more than 4 percentage points below EU forecasts.

On Wednesday, German bank Helaba withdrew from the stress tests to avoid public failure.

It said it would have passed the test if regulators counted a debt-equity hybrid, called "silent participation", as a capital reserve, but the EBA, having initially said it would accept this, then changed its mind.

"Under the EBA conditions the bank failed, that is clear," Helaba spokesman Wolfgang Kuss told the AFP news agency on Friday. "From our point of view we were successful," he added.

Meanwhile, the leaders of the 17 eurozone countries will hold an emergency summit next week in a bid to agree a deal on a second bail-out for Greece, the EU president announced Friday night.

Herman Van Rompuy called the meeting after disagreement over the contribution of banks and other private investors to a second rescue package.

The disagreement has overshadowed the financial markets, prompting some of the biggest share price falls for months.

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Hushovd battles to stage 13 win

Dates: 2 July - 24 JulyCoverage: Listen live to every stage finish on the BBC Sport website (UK only); live text commentary on key stages; updates on BBC Radio 5 live & sports extraGet involved: Tweet with the hashtag #bbcTdF Hushovd's stage win was the ninth of his career World champion Thor Hushovd won the 13th stage of the Tour de France after a thrilling finish to the 152.5km trek from Pau to Lourdes.

The Norwegian overtook long-time leader Jeremy Roy of France in the final two kilometres to secure his first stage win of this year's Tour.

Another Frenchman, David Moncoutie, came second with Roy finishing third.

Home rider Thomas Voeckler finished in the peloton, more than seven minutes behind, but retained the yellow jersey.

"I really didn't think I would win this stage," said Hushovd, who took the race lead when helping his Garmin team win stage two's team time trial and held it for a week.

"I did things right tactically. It's true that I descend very well. I knew I had to. It was super."

For the second day in a row, FDJ rider Roy was in the thick of the action during a stage which included the hors categorie ascent of the imposing Col d'Aubisque.

The Frenchman was part of a 10-man breakaway group which pulled clear after the day's first climb - the category-three Cote de Cuqueron.

At the foot of the Col d'Aubisque Hushovd went clear, but Roy counter-attacked and caught the Norwegian before passing him with 50km to go.

Roy had a nervous moment when a fan got too close and brushed him with a flag, forcing him to swerve, but he still looked set for his maiden Tour de France victory and the first for a Frenchman in this year's Tour.

Hushovd had other ideas though and worked with Moncoutie to reel Roy back in before launching a solo attack to pick up the ninth stage win of his career.

"The disappointment is too big, it will be hard to take in," said Roy. "It's too hard for me. Only victory counts."

Yellow jersey holder Voeckler, who assumed the lead from Hushovd on the ninth stage, retained his lead of one minute and 49secs in the general classification.

Other leading contenders, including defending champion Alberto Contador of Spain and two-time runners-up Andy Schleck and Cadel Evans, could not take any time off each other as they conserved energy for Saturday.

Isle of Man rider Mark Cavendish retained the green jersey after finishing 129th overall, more than 22 minutes adrift, but saw his lead trimmed to 13 points.

STAGE 13 RESULT:

1. Thor Hushovd (Norway / Garmin) 3hrs 47mins 36secs

2. David Moncoutie (France / Cofidis) +10"

3. Jeremy Roy (France / FDJ) +26"

4. Lars Bak (Denmark / HTC - Highroad) +5:00"

5. Jerome Pineau (France / Quick-Step) +5:02"

6. Edvald Boasson Hagen (Norway / Team Sky) +5:03"

7. Vladimir Gusev (Russia / Katusha) +5:08"

8. Alessandro Petacchi (Italy / Lampre) +5:16"

9. Maarten Tjallingii (Netherlands / Rabobank) same time

10. Philippe Gilbert (Belgium / Omega Pharma - Lotto) +6:48"

OVERALL STANDINGS:

1. Thomas Voeckler (France / Europcar) 55hrs 49mins 57secs

2. Fraenk Schleck (Luxembourg / Leopard) +1:49"

3. Cadel Evans (Australia / BMC Racing) +2:06"

4. Andy Schleck (Luxembourg / Leopard) +2:17"

5. Ivan Basso (Italy / Liquigas) +3:16"

6. Damiano Cunego (Italy / Lampre) +3:22"

7. Alberto Contador (Spain / Saxo Bank) +4:00"

8. Samuel Sanchez (Spain / Euskaltel) +4:11"

9. Philippe Gilbert (Belgium / Omega Pharma - Lotto) +4:35"

10. Tom Danielson (U.S. / Garmin) same time

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Robert Peston

14 July 2011 Last updated at 12:22 GMT There is a real risk of the US government defaulting on its debts and - for unconnected reasons - also a danger of a whole string of sovereign defaults within the eurozone, which would foist losses on banks and financial institutions on a scale that would make the great crash of 2008 look like a shower on a sunny day.

And yet equity markets aren't in meltdown, the price of US Treasury bonds hasn't cracked and the price of gold (the putatively safe haven) hasn't risen as much as you might have expected.

Which tells you that investors and bankers assume that governments of the old rich West will eventually take evasive action - that President Obama and the Republicans will reach an accommodation on spending cuts that would allow the amount that the state can borrow to be increased, and also that eurozone governments will put enough money where their rhetoric has been on their determination to protect the integrity of the currency union.

But can Germany in particular make the financial commitment that is now perceived necessary to re-establish investors' and bankers' confidence that the eurozone as currently constituted will survive?

Because my conversations with those who run large banks and large funds make it clear that the crisis in the eurozone is no longer about Greece - or rather Greece is only a modest element of what concerns them.

They take it for granted that there will be big losses on loans to the Greek state and private sector - probably at least 200bn euros.

There is no longer a scintilla of doubt in their minds that there will be a restructuring of Greek sovereign loans, a reduction in what the Greek government owes to a level that may be affordable for Greek taxpayers.

Defensive moves

It is what follows which concerns them.

The worst case chain reaction from Greek default, whether orderly or disorderly, would probably go like this: a heightened perceived risk of default by the other two bailed-out nations, Ireland and Greece; an increase in expected losses for banks exposed to the financially over-stretched troika of Greece, Ireland and Portugal; a potentially devastating funding or liquidity crisis for banks if providers of wholesale finance decide to shun eurozone banks; a potentially devastating funding or liquidity crisis for Italy and Spain, if lenders decide to shun those economies regarded as next most at risk; default by Italy and/or Spain, sparking losses for banks and a new credit crunch that tips the global economy back into recession or worse.

What went wrong in the eurozone?

These are massive, real dominoes that are wobbling and could fall at any time. But they don't have to tumble: the eurozone has the ability to insert dampeners, buffers and defences so that, as and when Greece defaults, the reverberations are uncomfortable rather than calamitous.

There are four such possible circuit breakers.

We'll know the effectiveness of one of these tomorrow - when the European Banking Authority publishes the results of its investigation of "stress tests" of whether the 90-odd most important European banks have adequate capital and liquidity to withstand possible shocks.

What bankers and investors tell me is most important about the stress-test results is that they should include enough detail about the risks to which individual banks are exposed so that the banks' creditors know the risks they are running.

The cancer for the banking system is the uncertainty about which banks are weakest - because if there's a sense that some banks are at risk of going bust, but it is not clear which, the rational response of any creditor is to shun them all.

'Write-offs'

Which takes me to circuit breaker number two: eurozone governments would have to make a statement, over the coming weekend, that they would provide whatever capital is required by those banks that fail the stress tests or are close to failing the stress tests and are unable to raise such capital from private investors.

It beggars belief that we won't get such a statement from eurozone governments - but you never know.

Next, and this circuit breaker is proving elusive, the eurozone probably has to provide a collective guarantee to absorb some of the losses generated by countries like Greece - and also possibly Ireland and Portugal - that have borrowed more than they can afford to repay.

Alternatives exist for the European Central Bank

It is probably encouraging that there is growing talk among European regulators and ministers that the eurozone's bailout fund, the European Financial Stability Facility, should be able to buy Greek bonds in the market and then only demand repayment from Greece of the price actually paid for those bonds, the amount actually invested in the bonds.

In theory this policy of buying and cancelling some of the debt would reduce Greece's indebtedness, because the market price of its bonds is a fraction of the amount originally borrowed: if the EFSF paid 50m euros for Greek bonds with a face value of 100m euros, and agreed that Greece should have an obligation to replay only the 50m euros, that would reduce Greece's indebtedness by 50m euros.

But although deploying the EFSF in that way would help to put Greek public finances and the Greek economy back on the path to recovery, on its own it might actually exacerbate the crisis of confidence in the eurozone, if seen as a precedent for write-offs by other sovereign borrowers.

So the final circuit breaker - and the one seen increasingly as the most important, but is far and away the hardest to put in place - would be for eurozone governments to collectively agree to increase the resources of the EFSF to a size where it would be perceived to be big enough to lend to economies as big as Italy or Spain, in the event that private-sector lenders were to go on strike.

The problem is that the EFSF would probably need authority to borrow something like 2tn euros, or more than four times the EFSF's current size - according to Royal Bank of Scotland, for example - for it to be seen as a credible lender of last resort to eurozone members deprived of access to finance from conventional sources.

And the biggest chunk of that 2tn euros would in effect be lending by German taxpayers, which would be highly controversial in Germany, where there appears considerable popular resistance to the idea that they should increase their exposure to the rest of the eurozone.

Blank cheque?

There is an alternative that would fudge the issue of the extent to which Germany was supporting the rest of the eurozone.

This would be for the European Central Bank, in an explicit policy decision, to start buying distressed eurozone sovereign debt in a much more aggressive way. That is what the US investment bank Morgan Stanley is recommending.

But ECB conversion of Italian debt into euros would be a German subsidy for Italy by the backdoor rather than the front door - in that it would be predicated on the idea that Germany (and other eurozone countries) would be prepared to inject more capital into the ECB in the event that the central bank incurs substantial losses on its lending to overstretched states.

Or to put it another way, there may be no long-term survival for the eurozone unless Germany is prepared to use its balance sheet to underwrite the whole project. German voters, German taxpayers would need to be comfortable about providing backstop, guaranteed finance for the public sectors of any eurozone state that ran into difficulties.

Do the Germans feel a strong enough sense of solidarity with European neighbours to hand over to those neighbours what some will see as blank cheque?

Would they do so, even if new, more stringent eurozone-wide constraints were put in place limiting how much governments can spend relative to what they receive in tax revenues?

The nature of mainstream political and media discourse in Germany right now is not redolent of a nation ready to make that degree of financial commitment in the interests of eurozone cohesion. Which means that those investors who fear the worst may not be alarmist.

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