Save Greece and be damned

As Greece prepares to pass austerity measures to fulfil the conditions of its bailout, there's concern among the UK commentariat that the country could still default – and take Europe with it.

Will Greece go ? Eventually, perhaps, writes Wolfgang Münchau in Prospect, but it may not be a problem for today’s leaders to face. "The eurozone is based on three pillars : loopholes, fudges and lies ", while another EU ‘trinity’ – "no exit, no default and no bailout" is "logically inconsistent". The EU will probably continue to lend to poor countries such as Greece and Ireland until it is faced with a stark choice : draw closer politically, or break up. For now, though, says Münchau, politicians are likely "to fudge until they reach the point of unfudgeability. I would bet that this choice will be left to another generation of political leaders. Their decisions will determine whether Europe, in its current form, can go on."

If Greece goes, says The Economist’s leading article, it would be a disaster for Europe. But “the European Union seems to have adopted a new rule: if a plan is not working, stick to it.” As Greece prepares to pass austerity measures to fulfil the conditions of its bailout, the EU’s “strategy of denial – refusing to accept that Greece cannot pay its debts -- has become untenable, for three reasons”. The international politics around this crisis are becoming “ever more toxic”. The markets are convinced that “muddling through cannot work”. And “fears of contagion are growing, not receding”. The only solution, says the magazine, is “an orderly restructuring of Greek debt”: no panacea in itself, but a solution that would give the country a chance. But “that option will not be available for much longer. Europe’s leaders must grab it while they can.”