They couldn’t remain in denial forever. Ireland is expected to request an EU and IMF (known as The Bailout Boys) bailout package of up to €100 billion on Monday and is preparing to unveil a four year programme of steep tax rises and deep spending cuts.
Ireland is currently running a deficit of over £16 billion, an amount which it cannot afford to finance at current market rates, especially amid concerns about the solvency of Irish banks.
Ireland will be forced into tough measures to cut public expenditure further and to increase taxation on the vast majority of people, an increase in its corporation tax being one of the prerequisites for the loan. The tax, however, is a lot lower than in the rest of the EU.
Trade unions, quite naturally, are warning of civil unrest on a large scale.
Ireland has witnessed one of the biggest property collapses in the EU and now, after years of EU grants,subsidies and prosperity, it is time for some belt tightening just like everywhere else.