With the EU Commission forcing the government to spell out the details of its 2011-2014 budget plans,the public sector unions and professions will be alerted to mount sustained campaigns to avoid pay cuts,pension contribution increases (even if called for by pension actuaries) and significant redundancies in the four years of austerity. As a result,a desperate government will probably increase tax rates drastically on incomes and introduce rates on houses. It will do so even though the frenzy of tax increases in Lenihan's past three budgets have killed consumption, contributing materially to the economic depression. Ireland is facing a double dip depression and a lost decade like Japan's.
My post on this subject in March 2008 largely proved out http://www.politics.ie/920732-post1.html