Sir, – Up to now the euro zone leaders have been pretending sticking-plaster measures will be sufficient. The markets, at first doubtful, have now expressed their disagreement in unmistakable terms. These leaders will now have to take measures amounting to some debt forgiveness through default (different terms or names may be used) and guaranteeing of debt by increased issuing of EU/ECB bonds to the countries involved. The alternative is the euro collapsing, and a global recession for the foreseeable future.
As this won’t be in the interests of Germany or France, the outcome will surely be a helping hand for the euro zone debtors. This must mean the “PIIGS” will gain some relief. If debt forgiveness, or a debt guarantee or debt relief is given to Spain or Italy, it will have to be given to Greece, Ireland and Portugal too. In Ireland’s case, this can only be for the best. – Yours, etc,