Will Greece Exit the Eurozone?
Spiegel sez the PIIGS are starting to squeal:
Greece’s economic problems are massive, with protests against the government being held almost daily. Now Prime Minister George Papandreou apparently feels he has no other option: SPIEGEL ONLINE has obtained information from German government sources knowledgeable of the situation in Athens indicating that Papandreou’s government is considering abandoning the euro and reintroducing its own currency.
Alarmed by Athens’ intentions, the European Commission has called a crisis meeting in Luxembourg on Friday night. In addition to Greece’s possible exit from the currency union, a speedy restructuring of the country’s debt also features on the agenda.
Bankruptcy is not the best way to let a thousand nations bloom, but the eurozone is offering a high cost, but informative experiment in confederation. Mixing profligate national fiscal policy with international monetary policy is proving to be untenable.