And while a national consensus may prove elusive, despite the re-assurances of EU Commissioner Olli Rehn, those markets have given their initial verdict on the Irish Government’s judgement that a total cut of €15 billion is needed over four years to reduce the budget deficit to 3 per cent by 2014. The iol report has the money quote
Senior dealer at National Irish Bank Owen Callan said that market sentiment is still turning against Ireland.
“The market obviously doesn’t believe the position at the moment,” he said.
“They believe that the Government’s fiscal adjustment plan may potentially be too ambitious and that they won’t be able to follow through on it.”