Why the Irish economy is paying for its property dependency

The Dublin stock market has fallen 15% from its February peak. And a combination of eurozone-wide interest rates and overdependence on property means the Celtic Tiger could be heading for extinction.

The Irish economy is heading for a fall. While an overheated global economy, rising interest rates and a sub-prime lending crisis may cause problems in all parts of the world, to see where the biggest damage may be done you have to go to Dublin. The Celtic Tiger economy, galloping away year after year with no monetary brakes, is the one most likely to fall off a cliff. If the worst happens, its membership of the euro will bear part of

the blame.

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