A regular reader and commenter has asked the following question:

Should Greece leave the Euro now and go it alone? Or stay and hope for reform, with the possibility that going it alone could hurt its economy even more? Also, how should a country like Britain respond to the crisis?

In a sense the EU is doing Greece a good turn if it makes the Greeks reform taxation, get people to retire at a sensible age, cut the bureaucracy, and stop bribery. Just to read a short list like that makes you realise what a gargantuan task it is. Mario Draghi, head of the European Central Bank has just said that debt relief for Greece was “uncontroversial”. The issue now is that the euro is too highly valued for Greece. They could do their own devaluation by reducing wages and costs, but they have already had years of penury. My wife (the economist) says she would have voted for the deal herself, simply because the unknown of leaving the euro and trying to reintroduce the drachma is terribly difficult and could make things even worse. Devalue? Devalue what, you ask! Well, eventually the drachma, but when and how are good questions – and no one seems to know quite how to do it. When the euro was introduced my wife said it would be a disaster. I supported it for political reasons. She was right. I guess this time I’d better listen to her!

As for Britain, the British also thought the euro would be a disaster, and stayed out. Let France and Germany, the two countries determined to go ahead, sort out the mess. British taxpayers shouldn’t be asked to contribute to something they had nothing to do with. I agree with Mr. Cameron.