I wouldn’t disagree with you are saying. Greece has a long way to go in cutting its expenditure and there is a big difference between saying you are going to do something and actually doing it. However, there is very little time to do anything before their existing loans mature and that is why the eurozone members are insisting on very tight conditions for supporting Greece.
If eurozone don’t step in then there is a serious risk of sovereign default which might lead to a dominoe affect. This would have seriously implications for banks across the eurozone as well as in the UK.
The problems will arise if the Greek government backs down in the face of popular unrest.
However, as I have said the Ireland situation is different from that of Greece because of the immediacy of the maturing debt. If Ireland had have faced a similar situation I would have no doubt that eurozone would have stepped in.