Economist: Default before it’s too late

IRELAND, Greece and Portugal should default, sooner rather than later, according to a former ECB economist working with the German Institute for Economic Research.

Dr Ferdinand Fichtner said the choice facing troubled eurozone countries was either to default with a substantial haircut for creditors of about 50% or increase the repayment period for loans and lower interest rates.

As support among economists grows for restructuring debt, German Chancellor Angela Merkel warned that no decisions can be made until the EU/IMF team reports from Athens.