Why the Eurozone May Need to Sacrifice Greece to Save Spain (The Wall Street Journal)
“Mr. Tsipras and his finance minister have already been in contact with leftist governments in France and Italy. Conservative governments fear the left’s readiness to compromise with Athens may send Mr. Tsipras the wrong signals. In reality, the eurozone’s beleaguered mainstream left can’t deliver Mr. Tsipras the deal he seeks.
The Spanish government believes that the turnaround in its own economy—growth is expected to reach close to 3% next year and unemployment fell by 400,000 in 2014—is proof that a robust pro-market reform program is the only way to exit the crisis. Madrid believes that it would be in Spain’s and the eurozone’s best interests to allow Greece to crash out of the eurozone rather than boost support for Podemos and risk the recovery, according to someone familiar with its thinking.”