Major cutbacks were announced by Taoiseach Brian Cowen in the Dáil today, following a Cabinet meeting held after the collapse of early morning talks involving unions and employers.
Mr Cowen said the Government would push ahead with its cutbacks plan, including extra pension contributions from State employees, along with cutbacks in expenditure on a number of State services.
Fine Gael leader Enda Kenny, Labour's Eamon Gilmore and Sinn Féin's Caoimhghín Ó Caoláin made statements in response.