Eichengreen is pessimistic and he thinks that the provision of the liquidity that the Irish government will receive is simply postponing the inevitable. And the only reason why the other countries agreed is because they are trying to protect their own banks who hold the debt of the Irish banks.
So Barry Eichengreen sees debt restructuring happening soon and he is probably right. And his prediction is not about the economics of debt and deficits; in principle, governments could pay a very large amount of debt with future tax revenues. The real question is whether this is politically feasible. Will Irish tax payers be willing to pay for the failures of these banks? Not obvious when you look at the potential payments associated with current debt levels.