Source: globaleconomicanalysis.blogspot.com - Sunday, January 25, 2015Contagion? Well don't worry about that! German Chancellor Angela Merkel assures us that will not happen. However, a difference of opinion is forming in Greece, Spain, and Ireland. Via translation from El Confidencial, SYRIZA Extends the Debate , " Ireland Stands Out: Seeks Conference to Restructure Debt, Including Spain ." The Greek elections this Sunday still shaking European foreign ministries. ... The restructuring of the debt (about 319 billion euros in the case of Greece) scares the markets for contagion effect. Christine Lagarde was quick to respond in the pages of the Irish Times during a visit to Dublin last Monday. "In principle, collective efforts are welcome, but at the same time a debt is a debt" she said. Why Ireland Should Support Greek Plan The above article was based on an Irish Times column Why Ireland Should Support Greek Plan to Write Down Eurozone Public Debt . Contrary to many reports, Syriza is not threatening a unilateral default but wants Greece’s debt burden to be considered within a broader restructuring of sovereign debt in the euro zone. Its leader, Alexis Tsipras, has called for a “European Debt Conference”, based on the 1953 London Conference that wrote off half of post-war Germany’s debt and extended the repayment period for the rest over a number of decades. As Hans-Werner Sinn, one of Germany’s leading economists and president of the Ifo Institute for Economic Research, acknowledged recently, the All Related | More on Greece
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