When the euro zone rescued Greece in 2010 Germany insisted on enlisting the imf. Some worried about letting the Washington-based institution meddle in Europe. But Germany wanted the imf as external enforcer, to impose rigour not only on Greece but also on the soft-hearted European Commission. More than two years later, the enforcer has at times been Greece's main helper. It has sought to ease the pace of austerity. And it has been at odds with Germany over the hitherto unthinkable: the need to write off some of the billions that Greece still owes. In a string of late-night meetings in Brussels, Christine La-garde, the imf's boss, has injected some common sense into the latest rescue of Greece, finalised this week. Greece has been given more time to reach its budget targets, and the terms of euro-zone loans have been softened. For all the doubts about whether the latest numbers add up, something important has happened: the euro zone has come to accept that Greece cannot bear the burden of its debt, and that creditors will have to take losses.
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