Report comment

I agree there is both an economic and political dimension to the Greek crisis, and the political dimension should drive decisions. Maintaining peace and stability across Europe (and promoting Europe's strength in global economies and geo-politically) is a core raison d'être of the EU. As long as the EU politicians don't overstretch themselves and start making critical mistakes, that end up creating instability in the long run (a negative consequence of over-centralised economic/political power and planning).

The tough political decision to be made now is whether the EU is stronger with Greece or without Greece. There are good arguments to be made on both sides, not least the issues with neighbouring countries and economic/political contagion. If you have a cancerous part of the body, it may sometimes be better to cut it off, rather than treat it. Equally, it doesn't help if the patient bleeds to death as a result. There is a danger that the EU will end up bleeding to death if QE fails to bring stability and the expected economic growth.

@ Peter Kraneveld. Greek unemployment may well be the core of the problem for Greece and its politicians domestically. Mass unemployment leads to social unrest and social unrest leads to even more radical political leaders. But as you point out, economic growth in Greece needs to be accompanied by practical reforms, especially on the tax side, if Greece is to remain in the EU. Tax revenues from domestic tax-payers are collapsing even further (as they refuse to submit/pay their taxes), and this does not fly over very well in other European countries were tax payers are helping to fund domestic Greek spending and economic development. Emotionally, few outsiders like to see a country that takes with one-hand and then takes with the other, regardless of whether they support the EU or not.