What's Staggering Is How Fast The Wheels Came Off For Ireland

This morning’s fresh Eurostat deficit data, in which the Greek deficit was revised higher, also has all the data for the other member countries, including the other sick man, Ireland.

What’s really remarkable is looking at the country’s historical deficit and debt-to-GDP numbers.

Here are the years 2006-2009.

chart

In 2006, debt-to-GDP was just 24.9%, and there was a budget surplus!

Since then obviously debt-to-GDP has ballooned, thanks to the bursting of a banking bubble and the general economic malaise.

The bottom line though: If you think a fiscal surplus and a low debt-to-GDP is somehow a rock-solid foundation of stability anywhere, you should be aware of how quickly it can all fall apart.

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