THEODORE DALRYMPLE ON the European Crack-Up. “The debt crisis has revealed differences in national character of precisely the kind that make any closer union both difficult and dangerous. Indeed, the very attempt to force a union is at the root of the crisis, for if Greece and Ireland, to take two countries at the geographical extremes of the continent, had not been able to borrow in euros under the false supposition that eurozone membership effectively guaranteed their sovereign debts, it is unlikely that they would have wound up in their current straits. After all, lenders might have taken more care if their debts were being paid in drachmas or Irish pounds, which the Greeks and Irish could have inflated to their hearts’ content. The Irish and the Greek situations are, however, significantly different, and together they constitute a school for Euroskeptics. . . . The alternative to sharing the debts seems to be the breakup of the euro. This might turn recession into prolonged slump, with the countries expelled from the eurozone forced into a default catastrophic for the banking system. I get dizzy just thinking about the bank account in which I hold euros: in the event of a breakup, will it be denominated in drachmas or deutschmarks, and who will decide? Like everyone else, I would prefer deutschmarks, a preference that will drive up the price of the currency to the point that German exports, no matter how high their quality, will be too expensive to buy. No wonder German chancellor Angela Merkel appears indecisive: like every politician, she wants a painless solution to a problem.”

UPDATE: Fitch Says Greece Will Default By March 20 Bond Payment.