Goodbye Euro?

I have just visited the two countries that are making the headlines in the European newspapers – Germany and Greece. During my trip, I met officials, journalists, and key advisers to both Prime Minister Papandréou and Chancellor Merkel. Sitting on the flight back to London I have regrettably come to the conclusion that the Euro is probably done for – or that Greece will default inside the Eurozone. Until now, I have dismissed the pessimists, thinking that the Euro would be saved. But after my trip I have changed my view for a number of reasons.

Nothing I saw in Greece has convinced me that the Greek government is able, ready and willing to oversee the kind of austerity programme required to restore faith in its economy. This is a society where the government cannot tell how much money they will be able to gain by raising VAT. People are willing to make some sacrifices – and many have already had to – but nothing like what is required of them.