Europe’s economy - Bondholders can’t dodge the bullet

AS our policy-makers, guided by our guests from the IMF and the EU, walk a tightrope between austerity and chaos it is reassuring to know that the EU/IMF officials working in Dublin are considering how senior bondholders might be forced to pay some of the tremendous cost of rebuilding our beggared banks.

Anything that might reduce the life-changing burdens facing every household and institution in this country should be embraced with enthusiasm.

However, considering an issue is a very long way from reaching a decision on it. Significant legal and political barriers will have to be overcome before bondholders can be compelled to contribute to a resolution of the crisis they did so much to generate. They will not accept this position unless they are forced to.