Britain looking smart for not bailing out Greece

From today's WSJ Political Diary.

While the big nations of Europe and the International Monetary Fund scramble to rescue Greece, there's one notable exception: Britain. Chancellor of the Exchequer George Osborne may have attended EU bailout talks in Luxembourg Monday but he's not coughing up any money. Prime Minister David Cameron told the Times of London Monday that he was "absolutely determined" to avoid British involvement in any bailout.

The government's rationale is simple: Britain isn't part of the eurozone ("thank God," Mr. Cameron says) and isn't bound to rescue the currency of which it enjoys no benefit. London didn't participate in the first Greek bailout last year, which cost creditors €110 billion, so why should it now?

London's reticence is looking smarter by the day. Since last year's bailout, Greece has done little to curb its runaway spending, shed public-sector workers or privatize state-owned assets. Instead, the Socialist government looks ever-shakier and public resistance to reform is growing. Germany and France are pushing for another bailout but not because that will solve Athens's gaping debt hole -- German and French banks are Greece's biggest creditors. . . .