Germany has considered it. I never did find out whether those stacks of newly printed Deutschmarks that were rumored to have been stashed in the Bundesbank cellar were real. However, in this particular case, someone has to provide the money that Greece is still spending in deficit to run its government and its social programs. A chart I saw on FR yesterday suggests that they’ve slashed spending by 25%, which is a great start, but (1) they still need to borrow the overage, because (2) they can’t just print the drachma to cover it like the U.S. can with dollars. Stiffing your biggest creditor is probably not very conducive to future loans from anyone, much less that creditor, and that creditor leaving the Eurozone is worse. The money has to come from somewhere.
Redistribute! /s
Germany will not abandon it. Countries like Greece weaken the currency and bolster Germany’s exports. With Germany being a mercantilist state, the occasional bailout is a very small price to pay. They have also started to get sovereignty out of the deals and are creating puppets governments in places like Italy.