reasons for 5.8%

Why the 5.8%, surely the eu know that this will more than likely lead to a default as we'll have little or know growth and the repayments just wont be affordable and the reserves will be gone. The EU wont want a default because of the knock on hysterical effect around europe.
Or is this a way for the EU to force the govt to impose the 20-30% cuts in SW and the PS as the 5.8% will give them no option but to cut to this extent.

Or maybe to force the govt to increase the Corporate tax?

Stephanno said:

Or maybe to force the govt to increase the Corporate tax?

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yes... its like they're not going to bail us because we pay ourselves more than them and also taking potential investment and jobs from them.
At 5.8% we're going to have to give up those "perks" and the whole eu knows it especially the big boys. The uk have a big problem with the corp tax and the germans dont like our pay rates in the PS.

... and the germans dont like our pay rates in the PS.

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I don't think they are alone in this

If we are putting in 17.5 billion that means the funds from EU / IMF are 67.5 billion. I think that's why they are stressing 'average' rate. Are we going to pay interest on the money we lend to ourselves? If not then the rate is more like 7.3% on the 67.5 billion. I seen a calculation like this in the Irish times other day and was wondering if this is correct?