Will a Euro 600m easing-off be worth it?

Minister for Finance Michael Noonan's announcement on October 8 that Ireland would make a smaller fiscal adjustment in 2014 than originally expected was met with cheers from many of my Irish contacts. A smaller adjustment means lower tax hikes and smaller government spending cuts – surely that must translate into less pain?

Unfortunately, it's not so simple. A smaller adjustment could reduce the impact of austerity on living conditions in the short-term and ...