The continuing euro crisis is providing Europe with some tough Greek lessons.
First, Europe must avoid overreach. What was politically feasible on the eve of monetary union in the late 1990s is proving less economically sustainable today.
Greece should never have been admitted to the euro in 2001. It did not qualify. The numbers were largely fabricated. By 2004, the Greek government confessed its budget deficit was 3.8 percent, not the statutory 3 percent required for admission. The eurozone refused to question Greece's membership, though. This was compounded by years of economic profligacy and endemic political corruption. In addition, a feeding frenzy ensued through an influx of short-term money seeking big profits and readily available credit.