The euro is crumbling. Does this mean that the single currency project is nearing its end? Not quite. In fact, if well managed, the euro's depreciation is just what the doctor ordered to complement the much-needed fiscal consolidation in Greece as well as in the rest of southern Europe. Somewhat paradoxically, a weaker euro is the precondition for its survival.

Markets have their own ways to get us to the right place, although they do not always do it in the least disruptive manner. They have been bringing the euro down more out of fear than understanding that the solution lies therein. Yet we should understand that the goal is a good one rather than a tragedy. It is up to policymakers to ameliorate the markets' natural clumsiness during such periods of collective confusion.

The first beneficiaries of a weaker euro are the countries of southern Europe whose difficulties have been putting the future of monetary union in doubt. Greece has been the focus, but Spain, Portugal and Italy also face a sharp loss of competitiveness.