Economically it will work better since they'll be printing Euros, thus exporting the effects of inflation to Germany, France, and the rest. Politically, not so well. I predict the EU will invent for itself a new sweeping power to arrest and try national leaders.
Good point, and it will be interesting to see how the EU deals with the Greeks printing 20 Euro notes. I do hope that the Greek economy gets properly hit, and the fruits of socialism are seen by all.