If the Syriza party wins Greece's election on January 25th, most think the power to negotiate rests with Angela Merkel, the German chancellor. "A small minority, centred on the conservative leadership of the German government," says Alexis Tsipras, Syriza's leader, "insists on rehashing old wives' tales and Grexit stories." So it seemed after German officials leaked to Der Spiegel, a weekly, their assessment that Grexit would not only be bearable but might even make the euro stronger. Other problem countries have weathered the crisis (Portugal, Ireland) or are making progress (Spain). The euro zone now has a bail-out fund and a banking union. German banks and insurers have reduced their exposure.
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