Irish Prime Minister Enda Kenny has been urged to default on Ireland’s debt ahead of an emergency European Union summit on the Eurozone crisis.
Independent Deputy Shane Ross, the biggest vote getter in the last election, has called on Kenny to consider reneging on the national debt before he meets with fellow European leaders.
Ross believes that the decision by the Moodys rating agency to downgrade Ireland’s credit rating status to junk proves that the international money markets believe Ireland will not be able to pay what it owes.
He believes the government now has two choices to make when it comes to the national debt - denial or default.
“What I suggest to you and what I ask you is this, would you not consider taking up the default gauntlet, and in a structured way if necessary saying yes, default is not a negative, default is a positive, because believe me, the markets believe it is inevitable,” claimed Ross.
“This summit in Brussels is the most important of Mr Kenny’s career as fears mount that debt contagion could spread from Greece to Italy and Spain.”
Kenny refused a request from Ross to bring the Irish parliament back from summer recess next week to discuss the summit.
The Irish Prime Minister also claimed the summit, expected to ratify a second Greek bail-out, will not find a solution to the current crisis.
“What I’d like to think might happen is that the Eurozone leaders will make a series of decisions here that will start to restore confidence in the markets in a number of countries,” said Kenny in the parliament.
“Obviously, as the German chancellor has pointed out, there will not be an overall decision that will sort this out once and for all on Thursday, that it is a series of gradual steps and measures to be implemented.”