Plan to considerably reduce Greek debt

THE European Union is working out the details for an orderly default of Greece with about 40% of haircuts and debt swaps — far more than what was agreed less than three months ago.

EU sources confirmed that the overall plan is to considerably reduce Greek debt, which is close to 175% of GDP, to make it possible for the economy to cope with what was left and begin to grow.

However, any attempt to cut Irish debt is likely to be met with a firm no, in line with the responses so far from the ECB and the EU.