The euro crisis was never really about the survival of the single currency. Once the costs and consequences of a break-up were properly understood, a collapse was never likely. Instead, the real question has always been whether the euro survives on German or Italian terms.

In other words, will the euro be a strong currency underpinned by credible rules and self-reliant states with any burden-sharing subject to strict conditions and pooling of sovereignty? Or will it be a weak currency, reliant on periodic episodes of devaluation and inflation to restore competitiveness and sustained by fiscal transfers whether introduced formally or by stealth?

After last week's news of a surprise 0.2% fall in Italian second-quarter gross domestic product, this question is firmly back on the agenda.

Italy's slide back into recession for the third time in five years is primarily a challenge for Italy and it's Prime Minister Matteo Renzi. He took office almost six months ago promising an ambitious agenda but has so far delivered little. Last week, he appeared to have secured a deal to reform Italy's political system. But there is little sign of the far-reaching labor and product market changes or the overhauls of the bureaucracy and judicial system needed to revive growth.