Second rating agency flags Irish default…
As the UU’s tried (and failed) to get the blood of the Legislative Assembly pumping in the budget debate this morning, in the south the pain continues… “Moody’s has warned there is a more than 50% chance Ireland will lose its triple A rating within 12 to 18 months.” (yes, that Moody’s) Elena Moya notes that this means:
The spread between Irish and German debt rose last week to 203 points, meaning Ireland has to pay 2% more interest than Germany to borrow in the financial markets because of its perceived higher risk.
Two percent is an awful lot when such a debt could be carried for years. But is any ROI party willing to pay the political cost of fiscal sanity? Who would dare tax petrol or bungalows?