Madam, – The IMF’s recent call on the European authorities to urgently review the bailout terms for European states has interesting historical resonance.
The London Debt Agreement of 1953 saw the then very recent and most bitter enemies of the German state agree to write-down over 50 per cent of German foreign debt, press remaining debt repayments out over 30 years and put controls in place on interest rates such that the German state would not become over-burdened with debt servicing, thus restricting its future growth prospects. With enemies like this who needs friends? – Yours, etc,