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.”
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Notes to editors
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.