It Pays to Riot in Europe

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by Ambrose Evans-Pritchard: Time
Is Running Out for the West



Ireland must
now pay more than Greece to borrow.

Dublin has
played by the book. It has taken pre-emptive steps to please the
markets and the EU. It has done an IMF job without the IMF. Indeed,
is has gone further than the IMF would have dared to go.

It has imposed
draconian austerity measures. The solidarity of the country has
been remarkable. There have no riots, and no terrorist threats.

Yet as of today
it is paying 5.48pc to borrow for ten years, or near 8pc in real
terms once deflation is factored in. This is crippling and puts
the country on an unsustainable debt trajectory if it lasts for

Yet Greece
is able to borrow from the EU at 5pc and from the IMF at a staggered
rate far below that (still too high for the policy to work, but
that is another matter). These were the terms of the €110bn
joint bailout.

the rest of the article

28, 2010

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