Eurozone central bankers have talked publicly for the first time of managing a possible Greek exit from Europe’s monetary union as stalemate in Athens talks on a coalition government raises the prospect that Greece will renege on the terms of its international bailout.
The comments by members of the European Central Bank’s governing council indicate that the risk of eurozone fragmentation is being taken increasingly seriously by the region’s policymakers.
Amazing what we can grow used to, as the frog is basking in the hot tub, isn’t it?
At first, there was no Euro problem at all. Then it was just Greece. Then it was the PIIGS. Then it was unthinkable that anybody would leave the Euro. Now it’s thinkable Greece might do so, but of course, it remains unthinkable that anybody else would, or that Greece’s original catastrophic exit is now anything but a minor ripple in the future of the Euro.
And so the whole heaving, shuddering, collapsing mess continues to disintegrate, while the band strikes up a new tune on the Euro-deck as the iceberg draws ever closer.