A second, harder-hitting memo to staff, obtained by this newspaper, reveals that there has been a marked deterioration in sentiment toward Ireland.
It said our position was destabilising because of a summer news flow that had become "incrementally worse".
"In terms of the fiscal deficit, there is no sense that Ireland is pushing for more [than the €3bn], and with Spain and Portugal having delivered supplementary consolidations this summer, Ireland's consolidation plan might look behind the curve.
"The fiscal deficit is only stabilising and within the details income tax is an element of weakness. Nama, the bad bank, is generating a negative news flow too."
On the positive side, DB pointed out that, from a sovereign financing perspective, Ireland has been pre-funding, and that by mid-2010 it had already funded 80 per cent of its 2010 requirement.
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