Memo to the EU: Just Kick Greece Out Already

· May 14th, 2012 · 2 Comments

More of this awaits if the Greek problem is not fixed soon

Watching the Eurozone implode these days is like watching an old Dracula movie. A woman wanders down this dark path while you yell at the TV screen: “Run! Run! He’ll get you!”

Like a tragedy in slow motion, we pretty much know that disaster is inevitable. Greece cannot remain in the EU and a Greek default is inevitable.
Yet, the EU – led by Angela Merkel – continues to hope and pray that the Greeks realize that continued austerity is a prescription that must be followed.
It will not be followed. Greeks no longer want austerity but by a majority, they still want the Euro – to protect the value of their dwindling savings.
They cannot have both. They will not voluntarily relinquish the Euro, but still they refuse the nihilistic austerity guidelines of Germany.
So what should the EU do? The best course is to stop the bleeding now, move Greece out of the Euro and shore up the salvageable economies.
Its a basic principle of triage: ignore those that are too sick to be saved and work on those (Ireland, Portugal, Spain, Italy) that can – or in Sapin and Italy’s cases – MUST be saved.
The EU must kick Greece out now, while an orderly exit can be managed. Otherwise Dracula gets his next victim.

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  • http://twitter.com/Night_Haunter Xavi wise

    the short-sightedness of this article is appalling.
    Greece is still in the euro due to mainly one reason. kicking them out will send a clear and concise message to the markets: when the UE said they would back up any country in difficulties they were lying.not the message you want to send when some of the world’s largest economies are at the stake aswell (Spain, Italy) and others are under high risk of contagion (France) due to the former.

    kick Greece out and the investors will run away from Spanish/Italian bonds causing a problem to the eurozone far bigger than anything Greece could ever represent.

    • blr-editor

      Not so shortsighted if you consider that EU leaders are already publicly voicing the obvious. The reality is that the EU can only help Greece if they cooperate with the EU. Greece wants the Euro, just not the prescribed medicine that comes with it or any kind of fiscal discipline.

      For example, Greece has privatized absolutely nothing to date despite promises made to the EU.

      They will not meet their targets and any money spent on Greece is simply money wasted. If the EU had the courage to kick Greece out at the beginning of this debacle, we would not be where we are today.

      They will exit, mark my words, but only after additional billions go down the drain because of misplaced EU pride.