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World's media taking note of our 'political chaos'

Ireland's continuing political instability is starting to get noticed in international media and also on financial markets.

The 'New York Times' described the latest developments here as having "more than a tinge of political farce".

The paper also said Ireland had been engulfed in "political chaos" and reported that local observers called the whole situation a "circus".

The London-based 'Financial Times' said that Ireland was the first country to lose a government because of Europe's debt crisis.

CNN reported that Ireland was suffering from a "crumbling" government, while the BBC said the Government now resembled "the armless and legless knight in 'Monty Python's Holy Grail'".

The British broadcaster said all investors had got from Dublin was "delay, posturing, politicking and folly".

The political chaos has not helped Irish bonds on the markets either, with the cost of borrowing rising by 29 basis points (0.3pc) as investors grow worried that essential budgetary measures won't get passed.

Ireland is currently out of the bond market so the rates don't directly impact on borrowing costs, but they are an indication of the costs Ireland would face if we re-entered the markets.

The country would have to borrow at 8.4pc for money loaned out over 10 years.

Irish Independent