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Camino Mortera-Martinez, at the Centre for European Reform, says the time has come for a major constitutional overhaul in the eurozone’s fourth-largest economy:“What is happening in Catalonia is not a case of a state denying the democratic rights of its people. It is the product of increasingly radical separatism and a constitutional framework that is too rigid to accommodate those demands.”

Simon Tilford, chief economist at the Centre for European Reform, believes the EU will wait until the US Trade Commission rules on last week’s decision, probably early next year, before showing its hand: “But the EU will also have a choice. It could see this as an opportunity to step in and demonstrate to the British the benefits of being members of a big market and a strong trade policy, and to expose the Brexiteers and their inability to act. On the other hand, they might decide this is a good opportunity to hang the British out to dry and teach them a lesson, exposing how vulnerable Britain is going to be in a post-Brexit world.”

Ms Leadsom, an ardent Brexiteer, told the Centre for European Reform (CER) fringe event she would remain in the cabinet “as long as the Prime Minister wants” after she diverged from Tory policy by saying the UK would take back control of its “money, borders, laws” by its official exit from the bloc in 2019.

On the threat of a Trump trade war, Simon Tilford at the CER warns the White House's escalation is just a taste of things to come for post-Brexit Britain: "Brexiters assume Britain will face a benign international environment once freed from the EU to take advantage of open markets elsewhere. They take for granted that the UK would be able to rely on the US underwriting the global trading system. This was always naive, but has become delusional with the election of Donald Trump."

Simon Tilford of the Centre for European Reform believes so. He has noted that the EU and the US have been quarrelling about state support for Boeing and Airbus (the giant European aircraft manufacturer) for several decades but that this has never resulted in US tariffs on Airbus imports.

Schaeuble spent 130 billion euros less than would have been allowed under the constitution's debt rules, according to Christian Odendahl, chief economist at the Centre for European Reform. That frugality may however leave a successor more room to loosen fiscal policy, either through tax cuts or more spending, or both, he said.

Christian Odendahl, the senior economist at the Centre for European Reform in Berlin, said that there was still a "fundamental difference" in view between France and Germany, which is demanding that any burden-sharing must be accompanied by measures to tighten control over national fiscal policies."I don’t think his eurozone reforms will go very far now," Mr Odendahl predicted. "Macron will be be disappointed."