Keeping Greece in Euro zone may be bad but pushing Greece out is worse

European leaders have taken a hard line against Greece and openly talking about a Greek exit from single currency project.

It is true that there is no point paying Greek bills forever for other Euro zone countries. There is a possibility of an exit from Euro zone if Greek government keeps up the defiant tone.

However, European lenders should extend their hands and openly applaud the Greek people to take such a bold step even at the darkest of the time.

Why?

• They made a lot of mistakes of their own, handling the Greek crisis. European lenders didn't accept a proposal by IMF back in 2010, which talked about providing debt relief.

• Paying back the private lenders with official money was a bad idea, which is now openly agreed by European lenders.

Grexit could be worse than Greece in side EMU?

Pushing Greece out of Euro zone would eventually lead to a Greek exit from European Union, which makes the region vulnerable to Geo-political development.

Russia and China are likely to extend their helping hand to Greece to gain batter footing in European continent.

However real risk doesn't lie in Geo-Politics.

Greek exit would mean, European Central Bank (ECB) will have to eat its own words - "Euro is irreversible.....do whatever it takes to maintain so".

It will set a dangerous precedent that weak economies in Euro zone such as Cyprus, Malta, and Slovakia might face similar treatment when another crisis resurfaces. History says these crisis returns after a boom period.

This will be a big setback for European Union and single currency project.