Sir, – Given that Greece’s creditors must be operating on the assumption they will not be repaid – that the sums involved are simply too great – Wolfgang Schaüble’s assertion that debt write-downs cannot take place within EU bail-out rules begs a very simple response: change the rules.
If not, and Greece takes the route suggested by Paul Krugman and exits the euro, a knock-on effect not mentioned is that Greece would be forced, given the dramatic rise in prices, to adopt an import substitution policy thus diversifying the economy significantly.
Meanwhile a rise in tourism revenues might offset some of the absolute worst effects of an exit.
The smug tone from the Government is nauseating, not least Minister of State in the Department of Finance Simon Harris’s stated opposition to any debt write-down because it might cost the Government €350 million – where’s your European solidarity there, mate?
But the relief at not having to take these kind of decisions is perfectly understandable.
– Yours, etc,
EOIN DILLON
Mount Brown,
Dublin 8.
Sir, – Fintan O'Toole (Opinion, July 7th) is being a bit naive in suggesting that Greece's problems are due to arcane rules dreamed up by unelected technocrats.
Greece is in trouble for reasons anyone can understand. It has a large amount of government debt (large chunks of private debt have already been written off) which it hasn’t been able to prevent from growing and, since Syriza was elected, doesn’t show much interest in trying.
He is outraged that the Greek finance minister Yanis Varoufakis was excluded from the eurogroup of finance ministers. It is hardly unusual for creditors to exclude debtors from meetings where their debts are being discussed.
But the eurogroup wasn’t the only one to cut out Varufakis: he was cut out of the negotiations with his EU creditors by his own government and has since been cut out of the government altogether.
Finally, can we please get away from the view, propagated by prime minister Alexis Tsipras and implicitly endorsed by Mr O’Toole to the effect that because the Greeks have democratically voted in favour of asking for more last Sunday, the rest of us are under a democratic mandate to give it.
The EU probably should and it certainly will aid Greece some more. But Mr Tsipras can only hope his enthusiasm for democracy does not mean that the request will be the subject of a referendum among the donor states. For if it was he would win another oxi. – Yours, etc.
JAMES DORGAN
Blackrock,
Co Dublin.
Sir, – The Greek referendum result is regarded as a triumph of democracy against the EU bureaucrats.
Why stop there? Let the Germans call a referendum on its support for its contribution to a possible Greek write down. And give equal regard to that democratic result.
– Yours, etc,
JACK COUGHLAN
Sundays Well,
Cork.
Sir, – Greece has to pay its debts but the banks didn’t have to pay theirs – we did. The Greek people have to pay tax but the multinational corporations, run by the wealthiest people in the world, pay practically none. One law for the rich and another for the rest of us – who fund them. – Yours, etc,
MAEVE HALPIN
Ranelagh,
Dublin 6.