Cutbacks won't help indebted Irish

According to a report on global debt published by consulting firm McKinsey, Ireland is the country with the largest amount of private debt. Irish households are burdened with two and a half times as much debt as Greek households. The debtors should declare their insolvency, the economics expert David McWilliams urges in the conservative daily the Irish Independent: "The implication of this figure is that the Irish economy has to grow six times faster than the interest rate charged on this debt in order for the overall debt burden to remain stable. Assuming that the rate of interest - even with all the negotiations - is 4 percent. This means that the Irish economy would have to grow by 24 percent next year, just to ensure that the debt/GDP ratio stays stable. There are two ways you can get out of debt. One is that you can work your way out over years and years. This is the 'right' thing to do. But sometimes, when the weight of debt is just too heavy, it is impossible."

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