Greece is experiencing some of the frustration and international scepticism that hit Ireland almost a year ago. Only this time the stakes for the wider eurozone are much greater.

Prime minister George Papandreou formally confirmed his new government's plan, as reported here last week, to cut the budget from an Irish-style 12.7% of GDP to below the 3% eurozone ceiling by the end of 2012. He said his government planned to achieve the remarkable target by cutting spending on hospitals and defence.

But it appears offering to do too much too soon can also run a country into trouble. Athens' promise to get its finances in order will be two years ahead of the extended deadline that Dublin agreed. However, international investors who lend Greece money just do not believe it is possible. Last week the Greek bond debt paper on borrowings for 10 years surged by almost half a percentage point to trade at over 6%, a level that Ireland experienced during the big bad crisis weeks in March and April last year.

The credit default swap markets, which determine the cost for bond holders of insuring sovereign debt, on Friday ranked Greece, a eurozone member, as one of the likeliest to renege on paying back its debts.

Last week, Irish 10-year bond paper traded at 4.82%, about five basis points higher on the week, while the interest rate on German bond paper fell.

Amid jitters on Greek debt, the National Treasury Management Agency's apparent strategy of funding a big chunk of this year's deficit looks a wise move.