Where next for Europe?

Draghi’s pain may be compounded by longer-term issues that take years to solve. Officials are working on a package of possible measures to announce this week that could include rate cuts, liquidity injections and a plan to free up lending to kick start the economy.

A combination of constrained credit conditions, high levels of debt, an aging population and fiscal tightening will keep growth and interest rates low. The recovery struggled to gather momentum in the first quarter as stronger growth in Germany failed to offset weakness across the region, there is a good chance the ECB will have to go even further and buy assets under a quantitative-easing program, similar to those adopted by the Federal Reserve and the Bank of England.