The body that advises the Government on competitiveness has said that "swift action" is needed to improve Ireland's position in the face of uncertainty about the world economy.
The annual report of the National Competitiveness Council, which was published this morning, said competitiveness was not improving quickly enough.
NCC chairman Dr Don Thornhill said that in action was needed to cut business costs, boost the performance of the education system and reform the public sector.
He said there also needed to be an improvement of cash flow to businesses.
Among its recommendations is the speeding up of the revaluation of property across the country and measures to make local authorities more efficient to enable them to lower commercial rates.
On energy, the NCC says consideration should be given to phasing out subsidies for peat-generated electricity.
The report calls for more time for maths at primary school level and a new way of determining entry into third-level education to replace the current CAO points system.
It also said undergraduates should contribute "a greater portion" of the cost of their education.
On tax, the NCC says marginal income tax rates are above 50% for single individuals earning €32,800 or above.
It said this position "should not deteriorate further" and should be reviewed when conditions improve.
It also said that in an effort the increase the country's attractiveness for research and development investment it would like to see a move to a full volume-based R&D tax credit, subject to the results of a cost-benefit analysis.
