The fate of the eurozone will be determined not in Athens but in Rome. The market now believes a Greek default is inevitable, but the key to containing the fallout depends on Italy, viewed by investors as the next weakest link in the euro chain.

The first line of defence against contagion is to strengthen national balance sheets to reassure the bond markets. That makes it all the more important this month's expected meeting by Finance Minister Guilio Tremonti to discuss a new privatisation programme delivers concrete results.