Why is Irish deficit 3 times worse than anywhere else in eurozone?
The single currency (euro) allowed German and French banks lend massively to the Irish public at inappropriately low interest rates -which fueled a huge credit boom. This in turn fueled a property price bubble which was allowed to grow and grow by the most powerful elements in society e.g the government, as it created jobs in the building sector and generated revenue, the banks, the building and property sector as it was healthy for their books- and large swathes the public- who bought into the “Celtic Tiger” spin. Siren voices warning of the potential danger, rather than being considered in a sane and responsible manner by the powers that be, were attacked, ridiculed and even at one point questioned “why they hadn’t killed themselves” !!!! On to this dangerous and heady mix was the hugely irresponsible Anglo-Irish Bank which had lent on the strength of the toxic assets that had grown up in the global markets and which led to the global credit crunch. It had taken up a huge share of th
