Economic news in Europe is beginning to reflect the continuing prospect of a debt default by Greece, regardless of current austerity measures. Leaving the Eurozone is one option for Greece, regarded by some as the "least terrible" and others as the most terrible. Riots, even "civil war", are predicted.
Regardless, a Greek default could lead to other disruptions in Eurozone and, initially, to a general weakening of the Euro. It is hard to believe that strengthening the EU was considered inevitable only three years ago. Not any more.
Germans in particular do not want to pay Greece's bills. Some Germans think that in the long run the Eurozone would be stronger with much more fiscal stringency.
All of this forms another potential pothole in the path of economic recovery in North America and Europe. In the long run, however, it is important for real costs to be borne opening in any society. A confederation like the EU is especially vulnerable when real costs are hidden.
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