Irish sovereign interest rates fell sharply last week, restoring some calm after a troubled few weeks. The fall had nothing to do with economic figures purportedly showing that the recession here was technically at an end. It had a bit to do with the budget measures announced the previous week and a lot to do with the easing of the Dubai debt crisis.

In the eurozone debt markets, you do not want to stand out as the worst in the class. During the Dubai crisis in early December, the interest rate on Irish 10-year money shot up again to midsummer levels at 5%. Last week, the cost of Irish 10-year money fell by 12 basis points (0.12%) back to 4.72%.

Now Greece, which shared with Ireland the highest interest rates in the eurozone, surged higher after it had to admit its debt pile would be substantially higher than it had told Brussels a few months earlier. The fury of the people who lend Greece money is still being voiced.

Last week Greek interest rates continued to climb by a remarkably large half a percentage point to 5.72% – a full percentage point above Ireland.

Greece's misfortune still leaves Ireland with the second-highest sovereign interest rates in the eurozone and among the highest in Europe; the debt paper of Spain and Portugal was trading last week at just above 3.8%. These days Ireland can only hope to be bracketed with debt-laden Italy, whose interest rates dipped below 4% last week.

Being the second-worst in the class may not bring much relief. Every time there is a ripple of worry around the world, Irish rates will likely shoot higher again.