Greece and the Euro: today Deja Vu, tomorrow Je Ne Regrette Rien?

In a strange, twisted way, it is verging on humorous to see Merkel and Sarkozy putting on the Comical Ali act to convince themselves – but clearly not their own electorates, nor the markets – that Greece is a valuable member of the Eurozone and must remain so (I almost added “at all cost”).

There are echoes here of how Norman Lamont was proclaiming the virtues of the ERM right up until sterling was ignominiously withdrawn from it on Black Wednesday, or until he finally saw the light on Wonderful Wednesday if you prefer. Not long afterwards, of course, he became the fall guy, but John Major’s reputation and government never recovered.

So what will be the song of choice for Merkel and Sarkozy, as and when Greece defaults and they will be proved to have inflicted wanton financial destruction on their own economies simply in the name of the European ideal? Je Ne Regrette Rien just doesn’t ring true. How about “Three Wheels On My Wagon, And I’m Still Rolling Along?”