Portugal crisis puts restructuring back on agenda
Gaspard Koening, a former adviser to IMF managing director Christine Lagarde when she was French finance minister, even says that France should pursue this route. He advocates a three-year moratorium on France’s debt interest from 2015 to give room for fiscal reforms to be carried out.
“There is a lack of imagination in thinking about recovery,” said Koening. “At core this is a generational debate. The debt was racked up by earlier generations but it’s in their interests, and those of politicians, not to restructure as their pensions hold government debt,” he said.