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Given these positive endorsements, one would believe that Ireland can now look to a future in which it will have regained full control of its financial sovereignty. Following years of spending cuts and tax increases, the people of Ireland will be rewarded with the restoration of its financial sovereignty. However in order to be able to stand on our own two feet at the end of 2013, Ireland will have to overcome some additional hurdles. Ireland, in order to survive in a world without the assistance of the Troika will more than likely have to borrow money in advance of their return to the market. Ideally Mr Noonan would like to have a year and a halfs funding, which would require the government to borrow 17 billion during 2013. Is this Feasible?In my opinion the success of this strategy will depend on the interest rates for longer term bonds which in turn depend on investor perceptions of Ireland. As of today, the interest rate on Irelands 10 year bonds is 4. 82%. In July 2011 this rate stood at 14% and has fallen substantially since. This is an indication that investors are warming to Ireland. Indeed the NTMA has exploited this declining rate and has already borrowed 5 billion this year.
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