What on earth is the ECB up to?

It is being stupid.

Note that in the early 1950's, there was a writedown of German debt of around 50%, it was realized that the debt was a burden to development and not realistic to collect.

The Greek regime(s) have been pretty bad but nowhere near the 1933-1945 German regime which caused so much trouble for everyone, especially the Germans.

If they are going to continue with the practices which worked so well with the pre-1933 German regime and in Africa, there is going to be a predictable result. If the Greek leaves the Euro the precedent is set and some day it will be Spain or Italy or France that has to leave. It might be 20 years down the road, but it is inevitable.

I have as low an exposure to Europe in my portfolio because Europe has not has a "financial crisis" like the US, rather it has a financial crisis every few months because it hasn't dealt with the Greece situation realistically. (The scenario is a lot like 1990s Japan which has never recovered)