Ireland: The next Greece?

By Gavin Hewitt

For a period it seemed that Ireland had escaped the worst. It was early into the recession. It was bold in slashing the budget deficit. It was praised for taking tough, unpopular steps. Yet today Ireland is facing searching, serious questions. Is it sliding back into recession? Is its recovery losing steam? Is it getting to the point when an increasing share of its revenue is needed just to service its debt? Could Ireland default? Could the former Celtic Tiger be locked into a cycle of decline?

Hanging over Ireland is a question that hangs over many of Europe’s countries. Is it asking the almost impossible to expect recovery while implementing deep austerity programmes?