Despite austerity in Ireland, things have gone decidedly pear-shaped for the Irish government as its bank bailout-ridden deficit has ballooned to a magnificent 32% of GDP and debt spreads to German bunds are at record levels.
Despite the sentiments expressed in the CNBC interview above by the Irish premier, bond market action is showing great levels of distress for the country in both public and private sectors.
Here is the public sector
And here is the private sector
If Cowen and Lenihan don’t get this sorted by next year, the IMF will have to step in as we said they should do a year ago. Cowen faces an impossible task and will be headed the way of the Greeks in due course.
Also see:
- Lenihan prepares to unveil scale of cuts coming in Budget – Irish Independent
Source: CMA Risk Spreads