In his speech to the Labour Party Conference in Kilkenny, Mr Gilmore contrasted his party's approach to that of Fianna Fáil and Fine Gael, saying the two main parties lacked fresh thinking.
He said neither party had the answers, but that recession could be overcome through a stimulus package, using money from the Pension Reserve Fund as well as short-term borrowing to make investments that will bring jobs.
Mr Gilmore also called for better provision of broadband even if it means buying back Eircom to ensure it happens.
He said if the taxpayer can guarantee the banks, then families must have a guarantee too, with a two year ban on foreclosure and repossession of their homes.
The Labour leader defended public servants after recent attacks, but called on the Government to reconvene the social partners to agree a new Social and Economic plan to see Ireland through the recession.
Private investment in banks criticised
Labour's finance spokesperson Joan Burton said the possible involvement of private equity funds was like being rescued from a whale by a shark.
She urged the National Treasury Management Agency and the Pension Reserve Fund to be used for State investment in the banks instead.
Deputy Burton said it made sense to aid the economy through a carefully managed programme of public investment in education, infrastructure, and a low-carbon economy.
She added that Ireland needs to change its leaders, not just its light bulbs.
However, for a party anxious to assert its independent identity, there was also criticism of the main opposition party Fine Gael.
SIPTU President Jack O'Connor said voters switching allegiance from Fianna Fáil and the PDs to Fine Gael were leaping from the political frying pan into the fire.
Call for Harney to resign
Labour's health spokesperson earlier called on Mary Harney to resign as Minister for Health.
Jan O'Sullivan said the minister should go, not because of the controversy over her use of FÁS expenses, but because of the mess she has made in her time at the Department.
Describing the HSE as a 'terrible institution', she said she did not know if Ms Harney had 'visited Disneyland while in Florida, but she lives in Wonderland'
Deputy O'Sullivan repeated criticism of the Government decision to withdraw the cervical cancer vaccine programme saying it was a disgraceful decision.
There was also criticism of the Morris Tribunal, with Senator Alex White saying Judge Morris had been wrong to criticise politicians Brendan Howlin and Jim Higgins over the way they had handled allegations of wrongdoing by Gardaí in Donegal.
Senator White said it was 'absurd' to expect politicians to carry out an investigation before passing the allegations on to the Minister for Justice.
