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Montag, 12. Januar 2015

Denis Staunton: Why Ireland should support Greek plan to write down euro-zone public debt

"Greece is not Germany and post-war Germany's debt amounted to a much smaller proportion of its gross domestic product than Greece's does today. Germany was, however, regarded internationally as a deadbeat debtor, having welched on various debt repayment deals between the two world wars. And the creditor nations' forbearance in 1953 is all the more remarkable given how recently Germany has led Europe into a catastrophic war that also plunged its antagonists into debt.

Syriza's proposal to deal with Europe's collective debt problem multilaterally recognises that souvereign debt within the euro zone can no longer simply be viewed as a national issue. It also reflects the view of many mainstream economist's that much of Europes public debt is unsustainable and that austerity policies are not only causing hardship but damaging the economy."