"This is not politically sustainable, as anyone who remembers Germany’s own experience with World War I reparations should know. A populist backlash is inevitable. The Commission, the ECB, and the German Government have set the stage for a situation where Ireland’s new government, once formed early next year, rejects the budget negotiated by its predecessor."
This may hit at about the same time as the US Tea Party Congress is shutting down the US government due to the national debt limit being hit. 2011 looks like it will be an "interesting" year.
The key here may be whether the citizens of Ireland will really understand what they have been committed to pay, and then whether they will vote, via a new government, to reject it, consequences be damned. I don't know much about the economic understanding of the citizens of Ireland, but here in the USA, I believe the politicians could easily dupe the voters into accepting this type of thing by claiming we "all have to sacrifice", or "we can't leave this to our grandchildren", or some type of similar nonsense theme.
I read another report that had this loan package at fully 50% of Ireland GDP. When Iceland obtained a referendum vote on a similar package for their government due to their bust banks, they rejected it with 93% of voters voting "no", and that package for them was a bit less than 50% of their Iceland GDP. But of course Iceland is not part of the European Monetary System.