The Labour Party has proposed the establishment of a Strategic Investment Bank to get credit flowing to the 'real' economy again.
The state-owned bank would be funded with €2 billion from the National Pension Reserve Fund, and a further €18 billion to be raised on the bond markets.
Labour leader Eamon Gilmore said there was now 'gridlock' in the economy, and the private banking system is not working.
He said the Government was concentrating on the banks, not on lending to those who needed finance to create jobs.
Enterprise spokesperson Willie Penrose said there was no point talking about the smart economy if there was no risk capital to back new ideas.
