From Celtic Tiger to Bust: Ireland becomes a Programme Country

The genesis of the 2010 Irish bail-out was the state guarantee to the Irish banking system that dated from September 2008. For two years, the Irish state struggled to bring the crisis in its banking system and the attendant economic problems under control. By November 2010, the Irish sovereign was overwhelmed by the cost of its support for the banks and under extraordinary pressure from the ECB, it formally asked for support and entered into a Troika programme. The paper begins with a synopsis of the guarantee in September 2008 and its consequences. Section two analyses the role of external actors, particularly the ECB in forcing the Irish government into bail-out negotiations, notwithstanding its determination to avoid Greece’s fate. Section three examines the dynamic of Troika negotiations. Section four analyses the political consequences of the bail-out negotiations which led to the collapse of the Government