The rest of Europe can and must protect itself against a Greek default. A three-pronged plan is required: 150-200 billion euros to recapitalise banks across the region; extra liquidity, again for banks; and a beefed-up bailout fund to help Italy, if needed. The drumbeats suggest Europe is moving in this direction. But, as always, the fear is that it will be too timid. There is no time to waste. Athens’ agreement to accelerate its austerity programme is probably sufficient to secure the next 8 billion euro tranche of bailout cash from its euro zone partners and the International Monetary Fund. But the Greek government ... (full story)