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.