The bad news is that the very idea of Europe could face a test this week. Markets will see if Greece can suffer through the terms of a bailout, which it asked for on Friday.
The good news is that if the Greeks do find themselves sweating about their future, they can always cool off on a vacation, all expenses paid by the rest of Europe.
The same month that showed that financial markets won’t let Greece have any more fun—credit default swaps, insurance on Greece’s default, and government bond yields hit record highs last week—also showed the extent to which the European Union (EU) is willing to subsidize fun and frolicking.
When Brussels declares vacationing as a human right, as it did this month, it’s hard to ask why ordinary Greeks should suffer through the fiscal pain of reducing government dole. And when Brussels also publicly states that no member will be allowed to default, it’s hard to see what real punishment the EU will mete out to its truant members.
Maybe it’s up to the markets to signal more harshly that the holiday is over. If that’s the case, get set for a roller coaster.