Greece should defy the gunboat creditors

It states that public debt will reach 176pc of GDP this year, despite the haircut already imposed on pension funds, insurers and sovereign wealth funds (Norway for instance) who loyally stood behind Greece after categorical assurances by EMU leaders that Europe would never let an EMU sovereign state default.

The debt level is supposed to return to 124pc by 2020; a figure for some reason deemed sustainable. Such a feat is obviously preposterous in an economy that is still contracting violently, has seen a decline in exports over the last year, still has a structural current account deficit of 6pc, and (in my view) still has a badly over-valued currency. This target can be achieved only by massive debt write-downs.