Jim Power: The UK's fiscal woes could get worse

Here in Ireland, we can afford to look across the Irish sea with some amusement, but we shouldn’t get carried away.

Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng. 

The events of the past weeks are not quite as dramatic as when sterling was forced out of the European Exchange Rate Mechanism (ERM), but without the aggressive intervention of the Bank of England, the situation could have turned extremely nasty.

Following the introduction of a mini-budget with a tax-cutting package worth around £45bn (€51bn), including a very controversial measure to abolish the higher 45% tax rate, the financial markets reacted in an apoplectic and pretty dramatic manner.