Madam, – Can we please have clear definition of the “default” word as used within the current economic debate?
Your Editorial (June 23rd) states Greece has “multibillion euro repayments . . . that fall due in three weeks”, and “fresh bailout funds will be made available to meet these obligations and avoid default”.
Other commentators have stated that countries, currently Ireland, Portugal, and Spain, have to meet upcoming repayment commitments, and if they wish to either renegotiate terms or extend existing repayment period, these countries will be deemed, particularily by the credit agencies and the capital markets, to be in default.
To my mind the option to extend the period is far more beneficial to all parties concerned than to borrow more.
Who is defining these definitions? Why do EU countries give so much credence to agencies whose credibility has been shot over past number of years? Why is the EU allowing itself to be directed by the market, when surely it should be driving it? What is required is better knowledge and stronger leadership from all concerned, I suggest. – Yours, etc,