Free Britannia

Whatever the political consequences, every sensible financial commentator understands that the Greek economy can take no more. The "bailout" will merely push it deeper into the mire. The EU's terms do not begin to match the altruism the United States showed to the defeated Germans after 1945. America did not pauperise West Germans as many in France and indeed Washington wanted. America guaranteed their security, then gave them loans from the Marshall Plan that allowed the West German economic miracle to begin. Greece has invaded no one and committed no crimes against humanity. Yet the EU, which boasts that solidarity is its founding principle, is forcing it into destitution and chaos. The alternative to bowing to the demands of their German overlords is not noticeably better. If Greece were to leave the euro, there would be hundreds of thousands, maybe millions, of law suits, as parties argued whether contracts should be honoured in the old or new currency. Hyper-inflation might set in. The European banking system might collapse. As William Hague says, the euro is a burning building with no exits.

The EU cannot take responsibility for what it has done and be magnanimous for reasons British readers may not grasp. Raised in a Eurosceptic country, we do not understand how an absolute commitment to the European project was a mark of respectability on the continent. Like going to church and saying your prayers for previous generations, a public demonstration of commitment to the EU ensured that the world saw you as a worthy citizen. If you wanted to advance in Europe's governing parties, judiciaries, bureaucracies and culture industries, you had to subscribe to the belief that ever-greater union was self-evidently worthwhile.

Currency union is – self-evidently – a disaster. Admitting that would bring a loss of face too great for the European elites to bear. To take the most discreditable example, Germany and Holland have benefited enormously from the single currency holding down the exchange rate for their goods, while imposing effective tariff barriers on southern Europe.

Instead of saying: "We are rich because they are poor", Angela Merkel and her boorish colleagues imitate the smug, parochial, selfish Bild reader, who thinks that foreigners' problems would be solved if only they could turn themselves into him. Germany insists that the Greek crisis is the result of the corruption of Greek public life. Greek politics is undoubtedly corrupt, although I should add that the first victims of corruption are poor Greeks who cannot afford to bribe officials or hide their savings from the taxman. But Greek corruption cannot explain why Portugal is in crisis, any more than Italian corruption can explain why Ireland and Spain are in crisis. All five countries are suffering – and France may soon be suffering – because the euro is a monumental mistake. Rather than rectify it, European leaders attack the welfare states, employment protections and public services that the best of the European centre-left fought for after 1945. In the name of saving the euro, everything must go.