Last week, finance minister Brian Lenihan took €3bn out of the economy to save our economic sovereignty, as he put it. But around the world, countries are doing the exact opposite and pouring billions into their citizens' pockets in a bid to pole-vault over the recession.

The next 18 months will tell whether Lenihan's approach will become the blueprint for global economic recovery, but in the UK, Lenihan's teak-tough approach has given some economists and politicians pause for thought as to whether they should abandon Gordon Brown's stimulus approach and instead follow the Irish model.

On 22 April, Britain's chancellor, Alastair Darling, will present what is expected to be yet another tax giveaway budget in bid to boost spending. Last November, prime minister Gordon Brown borrowed billions to aid ailing businesses and cut VAT to boost consumer confidence.

While the VAT cut prompted a stampede of Irish shoppers over the border to avail of cheaper prices, the British economy continued to slip deeper into recession.

'Quantitative easing' is the buzz word in Whitehall, with the Bank of England printing millions and then pouring it into the economy.

But the debt defaulters in the IMF warned that Britain's deficit will reach 11% of GDP in 2010 – higher than Ireland's post supplementary deficit of 10.75%.

Last Tuesday night, the BBC's flagship political programme, Newsnight, ran a discussion on Lenihan's budget in which Conservative MP John Redwood said Brown "may have to follow the Irish example".

In a remarkable turnaround from a Newsnight programme earlier this year which derided Lenihan for presiding over a 'wild west' approach to the economy, BBC's economic editor Stephanie Flanders, commenting on Lenihan's budget, said "there's method to his madness. And also some lessons for the UK".

"The first lesson is that if you are lurching further and further into debt, there comes a point where fiscal stimulus isn't very stimulating at all," said Flanders.

In the US, where the fiscal rot first took hold, president Barack Obama also believes it is best to borrow out of a recession. Last February, Congress finally passed his $787bn (€600m) stimulus package which included more than $100bn in tax cuts, an $83bn investment in the lower paid and a $91b investment in education, including third level.

While Lenihan was bringing workers below the national minimum wage into the tax net, Obama opted for a special 'Making Work Pay' tax credit for lower-paid workers.

Despite strenuously arguing the German economy is blameless in the current mess, chancellor Angela Merkel and her finance minister, Peer Steinbrueck, have pushed through a €50bn stimulus package – the largest investment since 1945.

The package includes an €18bn investment in roads and schools and a €9bn in tax cuts to business and individuals.

While Lenihan said child benefit would be means tested or taxed next year, Merkel announced a €100 one-off extra child benefit payment.

While struggling businesses here have a €100m stabilisation fund to look forward to over the next two years, Germany introduced a €100bn guarantee programme for companies hit by the credit crunch.

Merkel's largesse will push the traditionally prudent German economy into a deficit of well over 4% of GDP next year and outside the EU's 3% limit.

Near neighbours France are also throwing money at the problem, though in a slightly more prudent fashion. President Nicolas Sarkozy's budget included a €26bn investment and spending spree to ward off the looming recession which has yet to seriously undermine economies in mainland Europe.

China, which up to last year was the fastest growing economy in the world, plans a four-trillion-yuan (€450 billion) stimulus package. Australian prime minister Kevin Rudd is also getting ready to announce a second stimulus package next month as economists there say the country is "on the cusp of a recession".

All these economies, of course, are so much bigger than Ireland's and can survive on their own far longer.

The Irish economy is almost totally reliant on other economies, which means Ireland suffers a quicker and steeper downturn. But the positive side of that is that Ireland will enjoy a more rapid recovery once the global economies turn. But to benefit from any such recovery, Ireland has to get its costs down now, hence the cost-cutting budget last week.

"I am confident that sooner than many observers expect, we will position ourselves to take full advantage of a global upturn," said Lenihan last week as he posted an average bill of €1,500 to each worker to get us out of the mess.

This time next year we will know whether there is "method in his madness".