The Greek prime minister Costas Karamanlis on Friday said he could not rule out exiting the Euro. Mr Karamanis reportedly stormed out of an acrimonious meeting, seething at the instransigence of other Euro members, in particular of the German finance minister Peer Steinbruck. It is clear that the Euro is a straight jacket for some countries now edging towards default. If Greece does leave, which now seems almost certain, it is likely to cause an unraveling of the Euro in a race to devalue. The UK is now viewed with a degree of envy by some members who believe that they would be much better off with a looser monetary policy.
