A new report recommends major changes in how Ireland manages its fiscal, budgetary and taxation policy.
The report was compiled by the Oireachtas Joint Committee on Finance and the Public Service.
It recommends that from Budget 2011, a new budgetary process must be introduced.
It says the Government should introduce multi-year budgets, as they are a better option for allowing departments and the capital programme to be more efficient.
However, it adds that over-runs in one year must be balanced by under-runs in subsequent years.
Today's report states that the current economic models are 'inadequate' and it would like to see an immediate independent review of the economic modelling used.
Among the recommendations are a new reserve fund, or ‘rainy day account', and clauses on downward flexibility in wages for periods of deflation.
Precise, accurate and timely communication between the Central Bank, the Financial Regulator and the Department of Finance was also cited as essential.
Committee Chairman Michael Ahern said 'this report will not solve the economic crisis, what it does is chart a path so that we run fiscal policy in a new way when Ireland recovers and is on the path to sustainability.'
Bond yields
Elsewhere, the Minister for Finance has said the main reason why Irish bonds yields are rising is because of uncertainty surrounding European Union plans for future debt.
However, Brian Lenihan also said it appeared that the markets did not fully believe the bank recapitalisation figures published at the end of September.
The interest rate demanded by investors to lend money to Ireland for ten years was 9.26% this evening.
