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The euro, and access to funds to support its banking system, has saved Ireland from default rather than skewered it, according to Phillipe Legrande, writer and author of Aftershock: Reshaping the World Economy After the Crisis.Writing in the FT, Legrande argues it’s Irish domestic policy, specifically low tax rates that encouraged speculation in the country’s real estate industry, that got it to this point.
The solution to the country’s problems: Go back on the bondholder bailout now crippling the country with banking sector debt and force haircuts on those investors.
Essentially, the German plan, but fast-forwarded to 2010 rather than waiting for 2013.
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