Reading the financial support programme drawn up by the EU-IMF made me want to exhale with relief. Finally, problems are to be tackled rather than deferred or ignored. No longer will politicians' petty concerns dominate the country's fiscal policy. Clientelism is hopefully dead and a proper financial structure for government is being created.

Whether people want to admit it or not, we're overpaid, our welfare rates are too high, our health spending is unfocused and a waste, our professional sectors have been protected for far too long, and public service structures are antiquated to the point of Dickensian. None of that will be allowed to continue. No longer can problems be "solved" by throwing money at them. Instead, fundamental reforms will be required, boosting the country's competitiveness.

The cut in the minimum wage is harsh but in the context of lower spending overall it increases the country's attractiveness. Make no mistake, more private-sector pay cuts are coming, in addition to reduced disposable income from the tax cuts and levies that are on the way.

However, this lower consumer spending power will result in a lower cost of living: rent, food prices and hopefully utilities should all fall in price, which is a good thing as it boosts competitiveness. No longer will the Irish be considered willing to pay any price; instead, those who offer value will benefit and those stuck in a Celtic Tiger mentality will suffer.

Downsizing the banking system makes sense, and if bond-holders can be forced to take stakes in the financial institutions in lieu of what they are owed, then future losses will be shared instead of being heaped on the taxpayer. This is a positive because the bond-holders are likely to have far more financial expertise than some of those chosen by the government during the crisis.

Bad weather the latest blow to retailers

Retailers must be holding their heads in frustration at the weather. This was a key month for many of them as they tried to claw into break-even mode at least, after a wretched year.

The next three weeks are crucial for the sector, and in turn for the exchequer because of the VAT on goods. We'll get a sign that things are going badly if and when sales start before Christmas, particularly if discounting is strong.

Some retailers, though, will be hoping that the sudden turn in the weather will have caused a surge in the number of high-margin goods such as winter coats and boots being sold. However, it remains to be seen whether enough people are venturing outdoors to make even this a respectable Christmas trading season.