Eurozone needs orderly default plan


Press Release

Prof Philip Booth comments on the Vatican Justice and Peace Commission's latest paper

Press Release

Mark Littlewood comments on the government's leaked proposals

Mark Littlewood comments on the latest eurozone talks

Commenting on today’s talks aimed at tackling the eurozone debt crisis, Mark Littlewood, Director General at the Institute of Economic Affairs, said:

“Two choices face the Eurozone countries today – an orderly and painful widespread default or a chaotic and extremely painful bailout. They should opt to bring this crisis to an end.

“It is time Europe’s leaders finally learnt to stop spending money they don’t have and those who have lent money to highly-indebted governments must now face the consequences.

“Using taxpayers’ money to save bank bondholders has got to stop. Recapitalising banks using Eurozone taxpayers’ money will simply lead more European governments to crisis point. A structured default will be painful but it is infinitely preferable to the risky gamble that looks likely to be made today.

“The assumption that lending to governments is safe no longer applies.”

Notes to editors

To arrange an interview with Mark Littlewood, IEA Director General, please contact Stephanie Lis, Communications Director, 077 5171 7781, 020 7799 8900, [email protected].

The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.

The IEA is a registered educational charity and independent of all political parties.