Well we're off, into the first of a series of crises in 2010. This time the Euro is the casualty as markets focus on the weakest member, Greece, downgrading its borrowings to BBB+. That might mean little to you on first reading but its below the normally acceptable quality of collateral for borrowing money from the European Central Bank, a pretty significant development you might say for a country badly in need of funds to pay for public services. The Hellenic Socialists that is the Greek Left was elected in October on the platform of taxing the rich to help the poor. Sound familiar? It should because that's precisely the mantra we heard in the run up to the Budget from public sector union chiefs now threatening to disrupt public services in Ireland. 

Forgetting the lessons learned from their ancestor's successful siege of Troy, the Greeks public took the bait and elected a Socialist Government which has run headlong into an economic maelstrom. Their deficit is much like our own at 12.7% of GDP but could be as high as 14.5% due to collapsing tax receipts at end of last year. The key difference is that their plan to address the crisis is based on gimmicks. The Socialists lacked the courage to significantly cut public sector pay and take on Greek unions despite growing public support for harsh medicine. Instead the Government is relying on softer steps like hitting the black market, selling assets and a populist 90% levy on bank bonuses. 

It simply isn't going to work and while Greece totters on the brink, squeezed on the one hand by potential EU sanctions and on the other by bond investors demanding an extra 2.35% per year above German debt, left-wing die hards within the ruling party have resorted to blaming local and international right-wing forces for their dilemma. Now where have we heard that mood music before? 

Lacking a strong hand at the tiller prepared to take on those whipping up chaos and paralysed by the fear of dealing with unrest, the Greek Socialist Government is in danger of succumbing to vested interest groups, weakening the Euro and potentially damaging EU cohesion. While its crisis worsens Greek farmers have grabbed the opportunity and blockaded roads throughout the country and border crossings from fellow EU member, Bulgaria resulting in a daily loss of €3 million to one of Europe's poorest countries. The Greek Prime Minister George Papandreou, responding by promising Greek farmers state aid over coming weeks may be opening the floodgates to others prepared to put on the squeeze despite its hugely damaging effect on Greek national interests. 

So what lessons for Ireland? The only thing separating us from Greece has been the resilient manner with which the Irish public has greeted the harsh medicine dished out by the Irish Minister for Finance. But everything depends on Ireland continuing to hold it together and the public refusing to let the country be torn apart by public strikes, vested interests and political cowardice. We may not have far to look to see how it could have all gone horribly wrong.