Tánaiste Eamon Gilmore has said the Government is "annoyed" by the comments of the ECB chief economist Juergen Stark, who called for cuts in public sector pay in Ireland.
Speaking in Brussels, Mr Gilmore said the remarks were unhelpful and that the Troika of the European Commission, the ECB and the IMF had not asked the government to push for public sector pay cuts.
"Inventing new agendas isn't helpful," Mr Gilmore said.
Attending a meeting of foreign and European affairs ministers, the Minister for Foreign Affairs said the Government would be honouring the commitments made in the Croke Park Agreement.
He said legislation was needed to establish a statutory basis for setting wages in the private sector, following the High Court ruling which deemed JLCs unconstitutional.
"Reforms will reduce the number of different pay rates which apply."
Mr Gilmore said a Greek default would not affect Ireland "directly" but could affect the economy "indirectly" because of any wider implications for the euro zone.
Earlier, Minister for Energy, Communications and Natural Resources Pat Rabbitte also dismissed Mr Stark’s calls.
"I think arguments that we should further depress the economy because of an inflexible ideological position is not the way to go,'' he said.
"We need to be able to permit the Irish economy to resuscitate itself and to be capable of getting back into the markets,'' he added.
Public Expenditure Minister Brendan Howlin said there was an agreement with the Troika, which went both ways.
He said the Government needed industrial peace at this time.
