Harsh generosity of Germany's Angela Merkel

AFTER the latest Athens bailout package, observers need to cast their minds back to the pre-euro period. Greece (and Italy for that matter) became prosperous by frequently lowering the value of their currencies and running lax fiscal policies. Greece became wealthy enough for the rest of Europe to admit it first to the European Community and then to the euro area.

So why not let Greece go back to the regime which suits its genius? Greece needs the southern European-Mediterranean laissez passer approach that lets it pass through economic and political barriers with innate flexibility and suppleness. Why harness it to the northern European forced …