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You're also overlooking the point that hardly anyone believes that the current repayment regime is in any way practical or realistic. The ECB/IMF suicide agreement is based on dogma and rhetoric, not practical economic reality.
It's not Ireland that needs to deal with reality - it's the ECB and the IMF.
Given that default is a predictable outcome of the current agreement - after the real economy crashes into a depression - the choice is between defaulting now, extracting the banking parasite, and rebuilding a working real economy, or defaulting later when all that's left of the real economy is a glassy smoking crater, and the best talent has moved abroad.
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