Though it is the business of Greece to keep its populace solvent, which according to some ideologues means its businesses. I do agree with you , in part. There is a higher up-front cost to doing what Iceland did, but arguably a better long term. But can the same thing happen when you're a part of an economic union like the EU? Greece's decisions, for better or worse (most likely worse), have to happen in the context of the EU. Reforming the EU would be an entirely different discussion, though.
It seems that being a part of the EU has resulted in Greece digging deeper before it stopped. Fiscal policy is a key part of a nation's soveignty. I think that is the critical flaw in the Euro. I can't imagine the disaster that would follow if states in the US didn't have to balance their budgets every year.But can the same thing happen when you're a part of an economic union like the EU?