The question is how the discrimination is resolved. As I understand it, the EUs case is that Ireland cannot operate one scheme for Irish institutions and another for foreign ones. The government therefore have two options: remove the tax break on Irish schemes or recognise the tax breaks on foreign schemes.
As an aside, there has been a rumour circulating that DIRT will be moved to the marginal rate from the flat rate of 20%. If this is the case, for a top rate tax payer, the tax free return on savings bonds looks more attractive (6+% effective compared with taxed institutions).