'End of the beginning' as wrenching changes kick in
The soaring cost of Ireland's borrowing needs means we're living on borrowed time, writes Paul McMahon
THE CURRENT economic crisis reveals that governments and markets can both be catastrophically wrong. Thanks to the enormous loss of tax revenue caused by the recession, the spending commitments of the Government during the boom have become unsustainable.
Put simply, Ireland has run out of money -- and the State is running out of options as it approaches the boundaries of its borrowing capacity.
The Croke Park Agreement was a cave-in to public sector unions over pay adjustments -- indicating the Government was operating under the false impression that it could continue to borrow indefinitely.