Spiegel / Telegraph: Ireland Needs Eurozone Holiday

From Spiegel Online – Bond Leader Pimco Sees Euro Zone in Danger:

European leaders proudly announced agreement last week in efforts to save the euro. But Pimco, the world’s leading investor in sovereign bonds, says that the measures are not enough. Some countries may have to temporarily leave the common currency union…

… investors will only return to the troubled European countries once confidence in their long-term growth has returned. Drastic austerity plans, however, could preclude such growth. As such, Bosomworth concludes that the only workable solution would be for Greece, Ireland and Portugal to temporarily leave the common currency union.

Read more.

From The Telegraph – Pimco says ‘untenable’ policies will lead to eurozone break-up:

Pimco, the world’s largest bond fund, has called on Greece, Ireland and Portugal to step outside the eurozone temporarily and restructure their debts unless the currency bloc agrees to a radical change of course…

Andrew Bosomworth, head of Pimco’s portfolio management in Europe, said current policies are untenable in the absence of fiscal union and will lead to a break-up of the euro.

“Greece, Ireland and Portugal cannot get back on their feet without either their own currency or large transfer payments,” he told German newspaper Die Welt.

He said these countries could rejoin EMU “after an appropriate debt restructuring”, adding that devaluation would let them export their way back to health…

Read more.

This entry was posted in Bankers' Bailout, Budget, Debt Default/Restructuring, ECB/IMF, Economy, EU, Euro / Sovereign Money, ireland, Solutions and tagged , , , , . Bookmark the permalink.

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s