Several days ago nobody could have imagined that Ireland would issue 3-month treasuries for a total of 500 million euros. The decisions that came out of the EU summit last week are starting to dissolve the link between banking sector problems and sovereign debt.
The land of Joyce will receive the same treatment as Spain, which menas that Ireland's government will not be liable for the financial system. This link was drowning Ireland, whose access to credit markets has been closed for two years and wasn't expected to open until 2014.
But the Irish have made major sacrifices and the euro zone has relaxed its rigid initial positions. As a result, it would be good for both banks and governments and an example for other European countries.
