Contingency plans needed for Greece's possible euro exit

ONE reason for a certain equanimity in Europe's political capitals about a possible Greek euro exit is that, during the past three years, Europe has constructed significant fire-walls separating the Greeks from the rest of the single-currency bloc. The day is fast approaching when Europe may examine how strong they are. No one wishes to test a fire-wall by starting a fire, but that is what may happen.

The logical extension of the confrontation between Greece and its creditors is that Alexis Tsipras, the new Greek prime minister, will get ready to break from the euro, perhaps by issuing a parallel domestic currency (or stamping current euro banknotes with a Greek emblem).

Whether or not the threat will be carried out is anyone's guess. The whole point about brinkmanship is that it takes us to the brink. Neither the new decision-makers in Athens nor the leaders of economic and monetary union seem at present in the mood to compromise.