World markets exuberantly demonstrated the belief that emergency summit talks today will succeed in hashing out a way to keep Greece within the Eurozone. But the mood among many in Europe is more subdued. If Greece is allowed to stay within the Eurozone without addressing the deep structural issues that exist, would only serve to delay the debt issues, and engender an ongoing flow of subsidies until these are responsibly resolved. To date, despite the high levels of subsidies, the economic conditions in Greece have not improved but rather deteriorated. The consequences of allowing a Greek exit will also necessitate tremendous costs. However allowing the Greek currency to deregulate, which cannot be achieved within the Eurozone, would provide an opportunity for the country to become more competitive and sustainable over time.
While some senior officials in Germany are urging strongly that compromises and ongoing bailouts will not resolve the current crises, insisting that the goal of keeping the Eurozone intact at the expense of other EU countries is not justifiable nor maintainable over time, politicians are wary of being perceived as responsible for a possible Greek exit — and along with this perhaps the eradication of the European ideal. While it appears that the fight continues to try to find terms under which Greece can remain within the Eurozone, whether this is posturing to underscore the commitment to the Eurozone or a prelude to a compromise, tonight’s emergency summit is being described by German leaders as nothing more than an exchange of ideas.