Union leader Jack O’Connor has warned the revised terms of Ireland's bailout deal would mean nothing if the Government continued with the projected €3.6bn of cuts in Budget 2012.

Mr O’Connor, of Siptu, wants the saved revenue to promote job generating growth.

The eurozone deal which will see a 2% reduction in the interest rate on Ireland's EU/IMF bailout which will reduce the cost of the loan by around €800m a year.

The length of time Ireland has to repay the debt has also been doubled to 15 years.

“We are approaching the tipping point of no return, if we are not already over the brink, with cutbacks over the past three years on a scale unprecedented in any developed economy,” said Mr O’Connor.

“The revised terms offer the opportunity of scaling down the measures projected for Budget 2012.

“The Government must grasp the opportunity to reverse the downward direction of things, instilling hope in our people – otherwise yesterday’s announcement will ultimately serve only to exacerbate frustration and despair,” he added.