It's too risky to ditch our bailout promises
Published 10/05/2011 | 07:58
I GREATLY respect Professor Morgan Kelly's opinion but I do not agree with him on walking away from the EU/ECB/IMF agreement – yet. It could be our ‘Get out of Jail Free Card'. It could also be a one-way ticket to the Stone Age. We simply don't know. Therefore it is too risky.
Our best bet is to try to achieve an agreed restructuring unless the burden becomes so great that it would make little difference for ordinary working people. Meanwhile, we shouldn't sit on our hands. We should embark on a radical growth plan. The savings ratio has risen from 2.7pc in 2007 to nearly 13pc, driven by fear.
The danger of home repossession should be completely removed. Steps can also be taken to reassure people in occupational pension schemes in the private sector.