A Greek exit will not be cathartic

How the eurozone handles Greece will determine whether or not the single currency survives – and hence the future of the EU as a whole.

If a Greek exit from the eurozone is mishandled, contagion to the other struggling member-states could be uncontrollable, leading inexorably to the collapse of the euro. However, if a Greek exit is accompanied by big institutional reforms, the currency union could still be saved. Indeed, a Greek departure could be positive for the eurozone if it freed up the political space needed for the German authorities to embrace such reforms.