The world is – justifiably – anxious

Before going to elections, Greek President Karolos Papoulias had hoped to a introduce a technocratic government that would get Greece out of the mess it's in. Instead, he received impossible results: Greece is heading to the polls again. The euro is steadily losing value, the drachma is signalling a comeback and the world is, justifiably, anxious.

The euro declined on Tuesday, and the international bailout promised to Greece is in doubt. Brussels believes that Greece already has one leg out of the euro bloc door. Newly elected French President Francois Hollande flew to Berlin to meet with German Chancellor Angela Merkel. On the way, his place was struck by lightning. Those who wish view this as a bad omen. On the menu for the meeting was, of course, Greek salad. Athens is undermining the continent's stability and Merkel and Hollande both know that Greece is turning Europe's trade market into a flea market.

Indeed, Greeks went out into the streets to protest Europe's grandiose aid package ($130 billion), but 80 percent of Greeks have no desire to abandon the euro bloc. They are not stupid. The International Monetary Fund warned them: Leaving the bloc means a 50% reduction in the value of Greece's new currency (the old drachma) a drop of at least 12% in GNP and a 35% average rise in prices. Unemployment will soar to new heights.

Brussels is seeking to downplay the significance of Greece's exit from the euro bloc, but it is clear such a move would have a domino effect. It seems likely Portugal and Spain, also deeply mired in economic troubles, would leave as well. Ireland is also on the verge of leaving the euro bloc.

Back in 1946, Winston Churchill spoke at the University of Zurich about his dream for a "United States of Europe" that would benefit millions of people. The unified currency completed this vision, even if the British zealously safeguarded their precious pound.

Paris and Berlin are anxious as well: If Greece leaves the euro bloc, it will cost the Germans 86 billion euro ($109 billion) and the French 50 billion euro ($63 billion). And that's before we take into account the Greek stocks held by German and French banks and insurance companies. The collapse of Greek banks also promises an unpleasant downward spiral.

The European Union can claim one great achievement -- preventing wars between its members. However, the euro bloc gave birth to a new type of war -- a battle for survival, which has 17 participants today. In the best case scenario, 10 will come out alive.

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