Fianna Fail are set to lose a parliamentary by-election next week, according to a new poll. This will cut its lower house majority to just two seats.

Prime Minister, Brian Cowen, and Fianna Fail are under pressure due to the shrinking majority, the crippling economic crisis and also the fact that they are to announce the toughest budget on record on December 7. The arrival of the IMF and European Commission on Wednesday evening puts even greater pressure on the party.

Irish bookies, Paddy Power and RED C released the poll on Wednesday which shows Fianna Fail’s Brian O'Domhnaill will come second in the Donegal South West by-election on November 25 with 40 percent of the votes going to Pearse Doherty, of Sinn Fein.

Such a sizable win would greatly encourage Sinn Fein who propose to take four seats in the next national election next years.

It is believed that next year’s election will produce a Fine Gael / Labour coalition government with their candidates neck and neck, on the latest poll, in third place. Labour had won just three percent in the last election in Donegal South West. On Wednesday their result jumped to 15 percent.