The dangerous Irish spread

Spare a thought for your Irish cousins. The reward for its government introducing the toughest austerity measures in Europe to try and ward off the horrors of too high a government deficit in the wash-up of the global financial crisis is that interest rates are on the rise again.
This graph from the Atlanta Fed in the US shows that the Ireland-to-Germany, bond spread is back near the levels reached during the May financial crisis.
27-08-2010 europpeanbondspreads
I suppose things could be worse. Ireland could be Greece where the interest rate demanded by the investors of the world keeps rising.
I wonder at what point the Greek people say enough is enough and force their government to take the knock and stop paying the banks it owes money to? Not long I expect and I hope Australia does not have a caretaker government when the financial crisis that causes comes along

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