…I do think that it would ultimately be better if the eurozone broke up. This might not involve a complete reversion to national currencies. A hard core of euro-users, centred on Germany, might survive. But the current euro will have to go.
\nIt is true that the transition from here to there will be painful and dangerous. My colleague Martin Wolf laid out an updated version of the full horror scenario in Friday\u2019s FT \u201d\u201c involving a breakdown of law and order in Greece, and financial collapse across Europe. How could anyone responsibly run that risk?<\/p>\n
The answer is that the alternatives to eurozone break-up are inherently implausible and deeply unattractive.At the weekend G8 leaders called for Greece to stay in the eurozone. Their present plan seems to involve some magical mix of stimulus and austerity that restores both budgetary balance and growth. But even if they can agree a real plan and even if it works \u201d\u201c and neither outcome is likely \u201d\u201c the eurozone\u2019s structural problems would remain…..<\/p>\n