Europe is now deliberately trying to push Greece out

By Jeremy Warner Economics Last updated: February 10th, 2012

Eurozone leaders are trying to force Greece out of the euro

There is only one way of interpreting the set of fresh demands tabled by eurozone finance ministers last night in return for agreeing a new €130bn bailout for Greece – that they are now quite deliberately trying to push Greece out of the euro. All pretence at European solidarity has been abandoned, to be replaced by the vengeance of Shylock.

Mind you, it's easy enough to see why their patience has been broken. The Greeks keep promising, but have consistently failed to deliver. Today, their promises are more worthless than ever, as popular support for the political parties which are signing up to them has collapsed.

The way things are going, they'll all be out at the next election, to be replaced by a ragbag of populist politicians unbound by whatever the present lot have signed up to. Even if eurozone finance ministers manage to get their new conditions agreed, there is not a chance of them being adhered to.

What is more, to push Greece out is of course the right approach for all. There is now no chance whatsoever of Greece making it in the eurozone. Economically and politically, the country is in meltdown.

Nobody in their right mind would invest in Greece right now, knowing that at any moment Greece might leave the euro and that overnight, they will therefore lose half to two thirds of their money.

Richer Greeks have adopted the same view. They are all getting their money out as fast as they can, as those of us who have been gazumped in the London property market by Greeks bearing piles of wonga know only too well.

It's a disgrace what's going on, little short of the rape of Greece by its own countrymen, but it is an entirely rational and logical response to the grossly overvalued currency they find themselves with.

Greece has very little option now but to impose capital controls and leave the euro. The longer it leaves things, the more desperate will its plight become.

Europe is now deliberately trying to push Greece out – Telegraph Blogs