While the fight between the Islamic State and the forces arrayed against it rages in the Middle East, another brutal battle is brewing in the US over who is winning the war. In America these days, all issues – whatever and wherever – soon fall into the maw of the country's polarized domestic politics.

In the last two weeks, Germany and its chancellor, Angela Merkel, were at the heart of efforts to achieve a diplomatic resolution to the two crises confronting Europe – in Ukraine and Greece. This is a new role for Germany, and the country is not yet accustomed to it.

The ongoing turmoil in Ukraine has frequently been compared to the Yugoslav crisis of the early 1990s – and, indeed, there are many similarities. But, when it comes to understanding why, after a year of increasingly brutal fighting, a resolution seems so remote, the differences are far more important.

Politicians face increasing pressure to act as overseas spending spree pushes up prices

Shares fall more than 5% on signs traditional peak gambling period fell short

Huge increases in private sector credit preceded many financial crises