Director of the Economic and Social Research Institute Professor Frances Ruane has predicted that the economic downturn will last another year.

Speaking on RTÉ Radio's Morning Ireland, she also said that Ireland's recovery would take longer than had previously been anticipated by the economic think-tank.

Also on the programme, Archbishop of Dublin Diarmuid Martin said lessons must be learned from the global financial crisis.

Dr Martin stressed that business ethics must be more than window-dressing.

The Taoiseach has said that global developments in the last couple of months had brought about a completely new situation from which Ireland was not immune because it was an open economy.

Brian Cowen said that because of high Irish growth rates in the past, the Government's policy framework would have to be adapted to a new situation.

He said the Government would set out the sustainable budgetary framework in the Budget on 14 October.

Mr Cowen was speaking at today's British-Irish Council meeting in Edinburgh.