To sum up, given the financial and economic integration achieved over recent years in the euro area, the hypotheses voiced by some about a country abandoning the euro or about reconstituting the euro area in a reduced form would have highly detrimental effects on everyone, be they net creditors or debtors.
The impact would be far more expensive than the alternative – standard – approach, which is to implement a strict plan of fiscal consolidation in all countries, starting with Greece, accompanied by structural reforms aimed at sustaining growth, and a plan to strengthen the economic governance of euro area.