The European Union and the IMF are barking up the wrong policy tree. More and bigger government and more intrusion into the affairs of Greece are the wrong answers. The facts are that Greece will never be able to pay off it's debts (acknowledged and unacknowledged). It won't happen; it can't happen. It is far past time to face this reality.
It is also a fact that a single currency for the bulk of Europe is a stupendously good idea for all of the obvious reasons.
So what is the "right answer?"
The right answer is for Greece to stay in the Eurozone and to default in whole or in part on its sovereign debt (and its other internal fiscal obligations). This is so obvious, you have to wonder why such a solution is not being considered - at all.
The reason is that big-government policy wonks always think there is a bureacratic solution to every economic problem. This is almost always false. Free markets provide the best solutions to economic problems, if only they were tried.
Those who foolishly loaned Greece money should pay the piper. They will eventually. Why not now?