Such a downdraft in the casino business would probably entail a default on its debts.

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But continually using the team as collateral to rack up personal debts that cannot be repaid without more leveraging is probably not a good idea.

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Italy, which has net foreign debt of just 21% of GDP, would probably escape the chop: even with its heavy debts and chronic lack of competitiveness, Mrs Merkel would reckon that the euro zone could not function politically without it.

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If a heavily indebted individual wanted to save for the future, a financial advisor would probably tell him the first step is to pay off some of his debts.

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Creditors have been more patient with democratic governments than with other regimes, probably because the risk of abrupt changes of policy (like the repudiation of Tsarist debts by Russia in 1917) are reduced.

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