Ireland is now joined ever closer on the sovereign debt markets to the ability of the Greek government to control its out-of-control spending. If Athens fails to convince the markets, any strains across the eurozone will again probably push Irish sovereign interests higher in the early part of 2010.

The signs so far have been promising for Ireland. The cost to the government of borrowing money for ten years was pegged last week at under 4.8% ? barely changed over the past week and, indeed, little changed since early December before Minister of Finance Brian Lenihan announced his latest austerity budget and the breaking of the news of his health problems. That still leaves benchmark 10-year Irish rates as the second most costliest in the eurozone after Greece where the cost of borrowing 10-year money last week traded at 5.65%.

But what happens in Athens will remain key. Unfortunately, market commentators are sceptical about the Greek government's plan as stated last week to reduce its annual deficit below the 3% ceiling by 2012 ? almost two years before the new extended deadline the European Commission gave Ireland last year to get its finances in order.

Capital Economics says that Athens' ill-defined austerity measures would still leave Greek government debt surging "to an astronomical" 130% of GDP by 2012, admittedly down from 150% of GDP if it were to do nothing over the same period.

The Irish government faced the same scepticism a year ago.