Establish an EU bonds agency
Published 20/09/2010 | 05:00
Without the support of massive financial guarantees from the other euro countries, including Ireland, Greece would no longer be able to borrow through the bonds market the money it needs to stay afloat.
Ireland, borrowing €20bn a year, a staggering 40pc of its public expenditure requirements, is now forced to pay almost 6.5pc interest -- more than 4pc above what Germany pays -- to get anyone to invest in its bonds and there is already talk of possible default.
And the other countries in the PIIGS group -- Portugal, Italy and Spain -- are still not out of the economic woods.