NEW YORK (TheStreet) -- In all the reporting on what is going on between Greece and the eurozone, so much has been made of the fact that Greek finance minister Yanis Varoufakis is a trained economist and an expert in the theoretical field of "game theory."
As a consequence, analysts have been trying to determine whether or not the "game" being played by the newly elected Greek government and officials from the eurozone is a game of "chicken" (who is going to blink first), or a game of "Prisoner's Dilemma" (will both parties default to the worst-case solution possible).
What if the answer is "none of the above"?
What if Germany and Chancellor Angela Merkel and other members of the eurozone are simply saying to the Greeks, "Do you want to be a member of a winner or not? It's your choice!"
Chancellor Merkel wants the European Union to succeed and wants its member nations to be effective competitors in the global economy. This view has performed better than any other explanation in interpreting the positions she has taken and the results that have followed.
Merkel believes that the optimal way for Europe to compete effectively in world markets is for its member nations to become very efficient and productive economies. She also believes that all member nations will be more competitive if the eurozone achieves the scale that is only possible through economic and political union.
The result? In terms of confidence in what is happening, let's look at the yields on the 10-year government debt of eurozone members:
The top tier: Germany, 0.37%; Finland, 0.43%; Netherlands, 0.44%; Austria, 0.47%; France, 0.62%; and Belgium, 0.65%.
Next: Ireland, 1.13%; Spain, 1.56%; Italy, 1.63%; and Portugal, 2.32%.
Greece? Well, the yield on Greek 10-year government securities was 10.12%.
There are still situations that are being worked through, so one cannot say that all is well. France is still complaining, although its socialist president François Hollande has followed the example of his socialist predecessor François Mitterrand and, although elected on a very "socialist" platform, has responded to market pressures and is working though a "reform" program for the country. Matteo Renzi, the Italian prime minister, has now been introducing reforms into Italy for more than a year now.
Even though grumbling about the hardships is heard in other "reforming" countries such as Spain and Portugal, progress continues to be made. And, as indicated above, the markets have responded with a fair degree of confidence, evidenced by the relatively low yields on the debt of these governments.
The market seems to question whether Greece deserves to be associated with these other members of the union.
Remember that Greece falsified information in order to join the union. There are substantial questions now about the honesty of its situation. There is a question about whether Greek reporting can be trusted. Maybe, even at a cost, the eurozone might be better off without it staying around as a member.