Following the burst of the bubble, the Irish economy experienced an exceptionally severe contraction and massive bank losses. Lower revenues and large capital injections in the banking system have led the debt-to-GDP ratio to rise from 25 per cent to about 120 per cent since 2007.
In response to the crisis, the Irish Government has taken a large number of measures to reform the financial sector, strengthen public finances and return the economy to growth. The first of these measures were adopted already in 2008. Since 2010 they have been part of an assistance programme agreed with our European partners and the IMF.