Among the spending cuts and tax rises are a reduction in the minimum wage, a new property tax and thousands of public sector job cuts.

The four-year plan is designed to save the state 15bn euros.

The government is also negotiating a bail-out package with the EU and IMF, expected to be worth about 85bn euros.

However, controversy surrounds the government's growth forecast - which is crucial for its deficit forecast over the next four years - and which many economists consider too optimistic.

Meanwhile bond markets have expressed their displeasure, with yields on Irish government bonds returning to the same elevated levels they were at before talks over the bail-out began.

Spain is also being caught up in a broader loss of confidence in eurozone governments, with the yield on its 10-year bond rising above 5% for the first time since 2002.

Finance minister Brian Lenihan said that the spending cuts would be concentrated in areas of highest spending - pay, pensions and social welfare.

The government has said it wants to protect health and education spending as far as it can.