The higher education systems in Ireland and the UK have seen several decades of remarkable change, particularly with the development of mass higher education. Yet the economic recession is creating a turbulent environment for higher education systems which will pose new challenges for universities. In this article, Michael Shattock argues that Irish universities are potentially vulnerable during this age of austerity, and new policy issues will need to be tackled. He argues for universities to maintain a clarity of vision as to their long term objectives.