Make or break in Europe?

‘I think we are at a make or break place in Europe,’ said former Greek Prime Minister George Papandreou on the Andrew Marr Show. Europe is holding its breath for the results of today’s election, which, should the radical leftists Syriza win, threatens to open a new chapter in the euro’s unhappy history.

Germany remains adamant that Greek cannot renege on its bailout deal. But rumours that Germany would welcome Greece’s exit persist; indeed, the Sunday Times reports (£) that the European Union is, collectively, preparing emergency aid packages for Athens, should the country withdraw.

These preparations are the sort of coherent and complete action that the euro-crisis has demanded. Papandreou lamented the eurozone’s incoherence, saying that fiscal transfers and closer integration must now be delivered if the euro to survive. Asked what the consequences of a Greek exit might be, Papandreou said, bluntly, that it would lead to catastrophe and contagion, implying that the Germans should be careful what they wish for, especially as Germany is most probably too weak to withstand a continent-wide disaster.