London Telegraph 
Sept 22, 2011
There is a growing consensus among EU diplomats and officials that Greece will default while remaining inside the eurozone.
Intense talks are taking place in Berlin, Paris, Frankfurt and Brussels about how to manage a Greek default in the short to medium term.
“It is not now but a question of when and how, not if,” said a source.
EU diplomats, both inside and outside the eurozone, now believe that in the single currency long run Greece “may decide to leave” because of its need for depreciation will make it necessary.
- A d v e r t i s e m e n t
In the absence of other structures, a consensus is emerging that the European Central Bank will have to monetise debt by buying large quantities of Greek bonds to keep banks, especially in France, afloat.
A huge expansion of bond buybacks – the ECB has around €1.7 trillion (£1.48bn) at its disposal – would also be used as a “firewall” to protect Italy and Spain.