The Nobel laureate Joseph Stiglitz said this week that he doubts the Irish Government’s measures to reduce the budget and bail out banks will be a success.

"The austerity measures are weakening the economy, their approach to bank resolution is disappointing," Stiglitz, a Columbia University economics professor, told the press on Thursday.

"The prospect of success is very, very bleak for the Irish government’s plan to resolve the problem," he added.

Irish Finance Minister Brian Lenihan disagrees with Stiglitz's grim assessment, and on Thursday he told the press the Irish government would not need external help from the International Monetary Fund.

Echoing his optimistic assessment, the Irish Central Bank Governor Patrick Honohan told the media he expects the government to be able to return to the bond market next year.

But Stiglitz does not share their optimism. Since 2000, Ireland has seen a property bubble and excessive expansion of its financial system.

"Fake growth is all you can call it," Stiglitz said.

Stiglitz also said that one reason for the bleak prospect for Irish budgetary success is that the "authority that helped create the problem stayed in power."

Fianna Fail, the nations ruling party, saw its support drop to its lowest level last month. The party has been in power since 1997.

Ireland had the highest euro-region budget deficit in 2009 at 14.4% of gross domestic product, followed by Spain and Portugal.