Government strategy appears effective

Since the budgetary adjustment process began in 2008, the Government has had a strategy of under-promising and over-delivering.

It has served the State well. Compare Ireland’s performance with that of Spain, where Madrid has consistently over-promised and under-delivered. Irish government debt yields are trading on a par with Spanish yields, even though Ireland is in a bailout programme.

Indeed, ratings agency Fitch last night upgraded Ireland’s outlook to stable from negative on the back of the Government’s fiscal consolidation measures, economic recovery, and better financing options following the NTMA’s return to the markets over the summer.