Greece

As predicted Greece is spinning out of control. There is a stand off between the Government and the Trades Unions - mainly Government employees. It is incredible that as with Government employees in this country they have absolutely no idea where the money comes from to pay their wages, pensions etc. They have no idea either that they are in a non productive occupation and that they live off the efforts of private sector employees. Greece should be allowed to leave the eurozone, devalue its currency and restructure its economy now. This is not going to happen for some time though as neither France nor Germany can allow Greece to fail since if it were to default French and German banks which have bought too much Greek debt will collapse, as will the ECB. It will happen though eventually as France and Germany themselves will not be able to continue supporting Greece, Portugal and Ireland for too long. Open Europe www.openeurope.org.uk has written a brief on how fragile is the ECB's solvency. The fallout will be massive if the ECB fails but better that it does so now in a structured manner rather than in a year or so's time in a forced in an uncontrolled manner. Hopefully this will teach the eurocrats some sense and humility. Hopefully our Government will use the collapse as an opportunity to force changes on the EU structure or better still to leave it.