Douglas Carswell's Blog

Interest charge on bailout - Shock

Apparently there is a row about the rate of interest that Ireland is to be charged for the massive bailout.  

This may come as a surprise to those commentators who last week reported the bailout as though it were some sort of handout.  On the contrary, the bailout extends Ireland's financial problems.  A massive overdraft has been extended.  The debt just got deeper.

Anyone other than an EU finance minister can see that you can't borrow your way out of debt.  Not inside the Euro, nor out.  Not by shoring up tanked banks directly, or via Ireland. 

The real choice for Ireland should be to decouple and default, or to default and decouple.  Either way, it'll be a lot less costly than 6 or 7% interest on all those borrowed billions - and more effective .... 

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