Dangerously high debt levels are keeping Ireland vulnerable

Debt sustainability for individuals, companies and countries is a very important concept. It seeks to determine the appropriate or manageable level of debt measured, in terms of servicing costs and the vulnerability that debt creates in the event of some shock to the system.

For example, back in 2010, Ireland had built up such a high level of debt as a result of the collapse in the public finances and the investment in the banking system, international investors lost confidence in the ability of the Irish State to service and repay that debt.