The calm after the Greek storm

Now that it seems that the Greek election has been decided, the world's financial institutions and corridors of power overflow with jubilation. Hard Truths wishes to ask, at this very appropriate juncture, an uncomfortable question:

"Would it have been better had Greece withdrawn from the Euro?"

It is understood that if Greece had withdrawn from the Euro, the consequences for the single currency would have been severe, with a run on the Greek banks, plummeting Euro valuations and Eurozone bond rates exploding. The situation in the Eurozone would have worsened, and Greece itself would have landed in a mild depression for a decent period of time. The existence of the Euro itself would have been put in jeopardy by the market reaction. These outcomes have been prevented by the the victory of the New Democracy party. 

The question is, should they have been? The Euro is a flawed concept. It brings together economies in a single currency that in any normal, non-political circumstance would never have even considered a currency union. Germany, with its export-dependent, manufacturing-based beast of an economy, makes an extremely poor bed mate with economically anaemic, corrupt and inflexible Southern Europe. The dissolution of the Euro would be in the interests of both parties. The Germans and Eastern Europeans, with dynamic and vibrant economies, could continue in a currency union that would benefit all concerned. The Southern Europeans, at the same time, would be able to revert to their respective currencies and devalue them enough to jump-start their economies. They still would need to reform their ridiculous socialist socio-economic systems, but at least if they failed to do so they would not damage the functional economies in Europe. 

European leaders must begin to realize that blindly following an ideological position is a very dangerous strategy, and before Europe goes down an economically disastrous path, the leaders must consider if the Euro is a viable currency, and if such close union is desirable. Politicians should be calculating, focused and willing to do what is necessary. This does not describe the approach to the Euro taken by Eurozone leaders.

It is time for a moment of clarity, and the recognition of a hard truth!