Professor Patrick Honohan:

It had a bit and the spreads on Irish Government paper went in. But then the following, if you remember then early the following week if I am not mistaken - maybe it was the week after - but there was a certain point where the coalition was announced to be at the end. The Green Party said, "Well, we are out of here when all this is sorted out and there's a budget." I think the markets then did not like that. The markets didn't like the deal either; they didn't like the interest rate; they had heard the rumours about the bank bail-in and they discovered there is no bank bail-in, bondholders bail-in; they didn't like that; they thought Ireland had not been given a good deal, which we agreed with, but it was the best we could do. Eventually it was an okay deal, but for that moment it wasn't, so the markets said, "No, this isn't going to work."