The differences between Greece and Ireland are instructive. Ireland had a tiny debt before 2008. Greece had a large one. The reason is simple: capital flow from the surplus countries was directed into the Greek state, which in turn passed it on to developers--those who built highways, 2004 Olympic sites, etc. In Ireland the same capital flow went directly into the banks, which then passed it on to the developers, bypassing the state. Thus, Irish public debt was tiny while private debt was gargantuan--the opposite case to that of Greece--but when the crisis hit, the result was the same: the Irish state took on the burden of private debt and collapsed. The Greek state just collapsed.