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> See eg Greece who were pressured to accept a deal worse than default to benefit foreign EU banks

how are they being pressured?

If they don't agree, they will get booted from the Euro currency cooperation. Then they can't issue bonds in Euro. Would have to use their own currency - and that currency would not be in high demand. What would you use it for? Buy olives? Nah, export companies would rather be paid in Euros, dollars or just about anything else...

Well, maybe but what is the non-pressure course that the EU should take here? Isn't that what they (Greece) signed up for when they joined the euro?

Just answering from an economic perspective:

> What would you use it for? Buy olives?

No, of course not. What government sells olives ? You'd use it to pay Greek taxes. Those you'll pay anytime you want to buy anything from Greece.

So it doesn't matter if export companies get paid in Euros, Dollars, or anything else. They'd still owe taxes in (presumably) Drachma and that would create a market for Drachmas.

Yes, but don't you think as much taxable activity as possible would be moved out of Greek jurisdiction? Especially as Greece would probably have to raise taxes quite a bit to finance the government... if they no longer have access to a euro bond market to do so.

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