New York Times sums up government

Battered Irish Economy Contracts 1.2 Percent
September 24, 2010, 2:28 am

Already reeling from a banking crisis that is threatening its financial
credibility, Ireland suffered another setback on Thursday when fresh data
showed that its ailing economy shrank 1.2 percent in the second quarter,
Landon Thomas Jr. reports in The New York Times.

The decline, after growth of 2.2 percent in the first quarter, surprised
many analysts, who had expected the expansion to continue. It also raised
the daunting prospect that the Irish economy, hamstrung by a real estate
market that has slumped 50 percent and banks that are barely lending, may
not soon recover.

The bad economic news, combined with continued uncertainty over how much
more the country must invest in its depleted banking companies, led to a
further increase in Irish 10-year bond yields, to a record of 6.6 percent.