Lifeboats out as EU flounders

The Greek economy is in free fall, having contracted 15 per cent under existing austerity measures, said Simon Tilford, chief economist with the CER in London. ... ''Its economy is three times as big as the Irish, Greek and Portuguese economies put together,'' said Mr Tilford. If Greece leaves, it will make departures by others much more likely; and if Italy left, ''France would be under huge pressure ... 'France assumes that if Greece and one or two other states left, that its status as a core part of the eurozone would be secure. But that's far from clear. Its borrowing costs are already higher than Greece's. If Italy goes, France will go, because it won't be able to reassure investors.''