Germany Is Likely Concerned that a Greek Euro Exit Could Set an Example

A NYT piece that discussed negotiations between Greece and the "troika" over its budget deficit should have pointed out the risk to Germany and the other core euro zone from a Greek exit from the euro zone. The austerity policies demanded by the troika have led to 25 percent unemployment in Greece. With the economy projected to continue to contract for at least another year, the unemployment rate is almost certain to go higher.

By contrast, if Greece were to leave the euro and re-establish it...