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More talk of Greece leaving the euro

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The discussion is slowly shifting from "it's impossible for Greece to leave" to "how can we plan an orderly departure." The latest call for exiting may be a Conservative, but he's not saying what others aren't hinting behind closed doors. As painful as it's likely to be, it's hard to see a scenario where Greece can stay in the euro. The Greek economy is a mess and saddling the population with decades of debt is not the answer. The Independent:

He told a European Parliament debate: "European politics is no longer anchored in reality. EU summits are becoming a political ritual, divorced from the real world - nobody believes that the latest package will save Greece." He went on: "Greece is suffering from a 30% loss of competitiveness against Germany. How do you eliminate such a deficit? Economic reform will, in the long term, be essential. But in the short-term, there is only one solution: a devaluation coupled with a default is the only way to salvage something from the wreckage of the Greek economy and to save a generation or more of young Greeks from a miserable economic inheritance." Mr Callanan added: "All the energy currently being devoted to drafting and ratifying a new treaty that is irrelevant to the ongoing crisis would be better employed drafting and implementing a plan for the orderly withdrawal of Greece from the euro, including carefully prepared support for the banks that will be most affected.
There's always a soft spot for the banks - those who created the problem - among the political class.

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