Abstract

Last week, Ireland’s attempts to burden itself with further cuts did not impress and the markets remain inured to the self-inflicted fiscal measures. Over the weekend, Ireland has been granted a reprieve with a bailout of $89 billion jointly administered by the European Commission, Bilateral Aid and the International Monetary Fund. On Sunday evening, the global politicians held their breath to watch the reaction to this bailout as they waited first for the Asian markets to react and subsequently the European markets. The reception has been warm but time will tell whether enough has been done.