Avoid Ireland

15th November 2010

While Ireland may well have hoped that bold efforts to cut budget deficits would appease panicky bond markets,its plan has proved to be less than successful.

Schroders' David Scammell says that although the measures Ireland has taken should mean the end is in sight, the message is simply not getting through.

"The Stability Programme looks to be on track, the country is fully funded until mid 2011, but the fact is, the market isn't listening," he says.

On 4 November Ireland's government said that it planned budget cuts worth €6 billion (or 3.8% of GDP) next year, as reported in The Ecomomist

The plan is to follow that with €9 billion of further measures in 2012-14. Further details are due to be set out later this month in a four-year economic plan.

Unaffordable measures

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